General Motors profit down 41 percent in second-quarter image

General Motors, the world’s largest carmaker said Thursday that its second-quarter profit fell 41 percent losses in Europe and South America cut into strong North American earnings.

The U.S. giant said earnings before interest and tax (EBIT) adjusted was $2.1 billion, compared with $3.0 billion in the second quarter of 2011. Total restructuring expense included in EBIT-adjusted for the second quarter of 2012 was $0.1 billion.

“Our results in North America, our International Operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson.

“Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”

In North America, GM posted a $1.965 billion profit, another solid performance that could quell questions about the company’s U.S. market share slide. Even so, North American operating profit was down from a $2.249 billion profit in the second quarter of 2011.

In the US, GM deliveries fell 6.4 percent last month.
In Europe the company lost $361 million before taxes in Q2 compared to a $102 million profit a year earlier.

GM Results Overview (in billions except for per share amounts)

  Q2 2012 Q2 2011
Revenue
$37.6
$39.4
Net income attributable to common stockholders
$1.5
$2.5
Earnings per share (EPS) fully diluted
$0.90
$1.54
Impact of special items on EPS fully diluted
-
-
 
EBIT-adjusted
$2.1
$3.0
 
Automotive net cash flow from operating activities
$3.8
$5.0
Automotive free cash flow
$1.7
$3.8