GM Earnings Show $1.3 Billion Profit in the Second Quarter
Operating profit totaled $2 billion, GM said, with its North America unit reporting earnings before interest and taxes of $1.6 billion, up from $1.2 billion in the first quarter. Its Europe division posted a loss before interest and taxes of $200 million, an improvement of $300 million from the first quarter, the company said. Within its international operations, GM said it earned $700 million, down from $1.2 billion in the first quarter.
GM ended the quarter with $32.5 billion in cash and marketable securities. Cash flow from operating activities was $3.9 billion. After adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion, the company said.
"I am pleased with our progress on achieving our business objectives," said Chris Liddell, vice chairman and chief financial officer, in a written statement. "We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit (ACF), and delivered two consecutive quarters of profitability and positive cash flow."
The company plans to hold a conference call later Thursday to discuss the results. Investors and the media will be keen to hear any news about GM's planned initial public offering, the date of which has yet to be determined. Reports surfaced Wednesday that a stock offering could happen as soon as Friday.