Europe posts first quarterly profit in five years
General Motors recorded a net income of $2.9 billion USD for the second quarter, up 157 percent from the same time period a year ago.
The automaker posted record earnings before interest and tax, totaling $3.9 billion USD. In North America, GM raked in $3.6 billion USD in adjusted earnings, a stark increase from $2.8 billion USD in the second quarter of 2015.
Evidence shows the automaker is gaining momentum in Europe. Although GM only gained $0.1 billion USD in Europe, the second quarter was the company’s first profitable quarter in the region since 2011. Sales of its Opel/Vauxhall vehicles have increased 7 percent during the first half of the year. GM’s operations in South America reported a decline in earnings during the second quarter.
The company’s total net revenue hit a record of $42.4 billion USD, up 11 percent. Diluted earnings per share were $1.81 USD, compared to $0.67 USD a year ago. Diluted-adjusted earnings per share increased to $1.86 USD from $1.29 USD for the second quarter of 2016. Thanks to these strong results, GM has upped its outlook for the year. It now expects diluted-adjusted earnings per share to lie between $5.50 USD and $6.00 USD, up from previous estimates between $5.25 USD and $5.75 USD.
GM was able to increase its net income while keeping sales relatively on par with Q2 2015. The automaker sold 2.4 million vehicles globally in the second quarter, or about the same as a year ago. During the first six months of the year, GM sold 4.76 million vehicles around the world, with 1.44 million of those sales coming from the U.S. Along with strong retail sales in North America, GM has attributed its recent success to strong overall sales in China, where it sold a whopping 1.81 million vehicles during the first half of the year.