General Motors Co. today reported strong second-quarter net income to common stockholders of $2.9 billion, up 157 percent compared with $1.1 billion in the second quarter of 2015.
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The results demonstrated continued strong sales in North America, where cheap fuel and easy access to credit have led to a multi-year auto boom favouring trucks and sport utility vehicles. Visit MarketWatch.com for more information on this news. “I think the results speak for themselves”.
Other highlights included GM’s first quarterly operating profit in Europe in five years.
GM raised its full-year earnings outlook to $5.50-$6.00 a share, up from$5.25-$5.75 earlier and above the midpoint of consensus of analysts polled by Thomson Reuters for $5.65. Investors agreed. GM’s stock was up 4.5 percent to $32.90 in premarket trading Thursday. The impact could cost GM up to $400 million and jeopardize the company’s goal of turning profitable in Europe this year.
GM said second quarter net income rose to US$2.87 billion, or US$1.81 a share, up from US$1.1 billion, or 67 cents a share, a year ago.
GM Chief Financial Officer Chuck Stevens said “everything is on the table” as the company looks for ways to offset Brexit-related costs. The company said operating profit equaled $1.86 per share, soundly beating Wall Street expectations of $1.49 a share. Revenue rose 11 percent to $42.4 billion.
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The company also revealed that it spent $581 million during the quarter – half in cash and half in GM stock – to buy Cruise Automation, a 40-person software company that is testing autonomous vehicles on the streets of San Francisco.
