The North American based automotive giant General Motors has recently announced that the company’s net profit has fell 41 percent in the second quarter because of European losses.
According to the company, the net profit in the second quarter has dropped by 41 percent because of widening losses in Europe, which were “shadowed” by “solid” earnings in its local auto market, Norht America. General Motors says that the net income attributable to common stockholders in the April to June period has dropped by 41 percent to “just” 1,49 billion USD, while revenue dipped 4 percent to 37,61 billion USD due to the stronger dollar.
“We clearly have more work to do offset the headwinds we face, especially in regions like Europe and South America”, said the General Motors CEO, Dan Akerson, in a statement. “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.”
General Motors says that earnings before interest and tax adjusted was $2.1 billion this second quarter, compared to $3.0 billion in the same period of 2011. The Q2 revenue was $37,6 billion in 2012 and $39.4 billion in Q2 2011, while the net income attributable to common stockholders has dropped this year from $2.5billion to $1.5 billion.