"Better than expected."
General Motors Earnings Fall 41%; Better Than Expected
Published: Thursday, 2 Aug 2012 | 9:45 AM ET
General Motors posted a smaller-than-expected loss in Europe that helped the No. 1 U.S. automaker post a better-than-expected second-quarter profit.
The North American unit of GM [GM Loading... () ] also reported stronger-than-expected results although the company attributed some of that to spending that was deferred to the third quarter.
"We clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America," GM Chief Executive Dan Akerson said in a statement.
Net income attributable to common shareholders in the second quarter fell to $1.49 billion, or 90 cents a share, compared with $2.52 billion, or $1.54 a share, in the year-earlier quarter. That's a decline of 41 percent from the period a year ago. Analysts polled by Thomson Reuters had expected 74 cents a share.
Revenue fell to $37.6 billion from $39.4 billion a year before as the stronger U.S. dollar hurt results. Analysts had expected $38.58 billion.
GM reported an operating loss in its Europe unit of $361 million, compared with a profit a year earlier of $102 million. However, that loss was smaller than some analysts had expected. RBC Capital Markets analyst Joseph Spak had expected a loss of $528 million, while Jefferies analyst Peter Nesvold had expected a loss of $432 million.
GM Chief Financial Officer Dan Ammann said Europe remains tough and would not predict when the company would return to profits in that region. He said the industry overall will face a challenging environment there in the second half of the year.