GM reported quarterly profit higher than analysts’ expectations, thanks to strong demand in the North American market.
GM CFO Dan Ammann said that the situation in Europe remains ‘very challenging’, as the market reached a 20-year low during the first half of the year. The US automaker’s net income during the second quarter dropped to $1.2 billion (75 cents a share) from $1.5 billion (90 cents a share) during the same period last year. Revenue increased 4% to $39.1 billion, surpassing the analysts’ estimate of $38.37 billion.
GM also reached a better-than-expected profit for the first quarter, as it kept a tight grip on costs in Europe and North America. The automaker has managed to cut $400 million in costs and Ammann said that the company will continue to be aggressive in these efforts. In North America operating earnings reached $2 billion the previous quarter, surpassing the $1.75 billion estimated by analysts.
“We continue to perform well in the world’s two most important markets, the U.S. and China,” Chief Executive Officer Dan Akerson said in the statement. “For the rest of the year, we’ll focus on winning customers with high-quality vehicles at a compelling value.”