General Motors today posted a profit of $2.5 billion for the second quarter

Article by Christian A., on August 3, 2011

General Motors recorded a profit of $2.5 billion for the second quarter this year, nearly doubling the $1.3 billion profit that the company achieved in the same period last year. This is the company’s sixth consecutive quarterly profit since mid-2009 when it exited bankruptcy. Revenue increased 19 percent to $39.4 billion.

Chief Executive Officer Dan Akerson commented that the investments of the company in design, quality and fuel economy are paying off all over the world as its international market share gain and financial results bear out.

The company’s net income from North American operations was $2.2 billion, a 41 percent increase from the second quarter of 2010. The company’s struggling European subsidiary reported a $102 million net profit, offsetting the $160 million loss it incurred a year earlier.

When asked why it sees regional earnings as net rather than earnings before interest and taxes, the company explained that taxes and interest are recorded centrally at the corporate level, thus, "there are no reconciling items" between regional EBIT and net attributable to shareholders.

The company further stated that "based on current industry outlook," it forecasts its earnings for the last six months of this year to be "modestly lower" than in the first six months.

First-half net amounted to $5.4 billion. At the end of the quarter, the company had automotive cash and marketable securities of $33.8 billion, an increase of 10 percent from the end of the first quarter.

The company’s chief financial officer, Dan Ammann, disclosed that stronger pricing contributed around $1 billion to profits, before taxes and interest. He added that they are able to lower incentive and increase prices, which highlights the value that customers see in these products.

Topics: gm, profit

If you liked the article, share on:

Comments

Recommended

Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries