Second-quarter net income at GM drops 19% to $1.2 billion

Article by Anita Panait, on July 26, 2013

General Motors posted a 19-percent drop in net income in the second quarter of 2013 to $1.2 billion, despite logging higher net profits in its two biggest markets -- North America and China – and recording lower losses in Europe. The main culprits for the carmaker’s net profit decline in the second quarter of 2013 were weaker results in Southeast Asia and Australia, partly due to pricing pressure from the depreciating Japanese yen.

The net profit decline is also due to $200 million in one-time items. The carmaker, however, posted a 7-percent increase in earnings before interest and taxes (excluding nonrecurring items) to $2.3 billion. GM considers EBIT as the best measure of its results. The carmaker logged a 4-percent hike in revenues to $39.07 billion.

According to GM’s Chief Financial Officer, Dan Ammann, a lineup of model introductions planned for the second half of 2013 for the US should provide a "tailwind" for the carmaker’s North American unit, which accounts for a big part of its profits.

GM North America posted a 5-percent hike in pretax profit in the quarter to $2.0 billion. Amman said that GM is "moving right into the rich part of our launch cycle for a lot of our new products," including the continuation of the pickup introduction and pending launches of the redesigned Chevrolet Corvette and Cadillac CTS sedan. He said that these set GM up “very nicely for the second half of the year."

GM's bottom line, however, suffered from higher costs associated with those product launches, especially the pickup introduction that started in late May. These costs offset continued strong pricing in the US, according to Ammann.

The second-quarter results are GM's 14th quarterly profit in a row since emerging from bankruptcy in 2009. The carmaker has accumulated over $19 billion in profits since then. GM chief executive Dan Akerson remarked during a conference call with analysts that the influx of new and redesigned vehicles is driving the carmaker’s financial results. [source: GM]

Topics: gm, income

If you liked the article, share on:

Comments

Recommended

A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 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