DETROIT – General Motors Co. announced net income of $1.5 billion for the second quarter of 2012, largely driven by strong sales in North America. When compared with net income of $2.5 billion from same period in 2011, though, net income was off by roughly 40%. GM's European operations saw an EBIT-adjusted loss of $0.4 billion for the second quarter. In North America (GM North America, or GMNA), GM reported EBIT-adjusted earnings of $2.0 billion, compared with $2.2 billion in the second quarter of 2011.
“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.”
According to GM, net revenue in the second quarter of 2012 was $37.6 billion, compared with $39.4 billion in the second quarter of 2011. The automaker attributed the decrease almost entirely to a stronger U.S. dollar. Earnings before interest and tax (EBIT) adjusted was $2.1 billion, compared with $3.0 billion in the second quarter of 2011. The company’s total restructuring expense included in EBIT-adjusted for the second quarter of 2012 was $0.1 billion.
Back in the first quarter of 2012, GM said its North American results for the second and third quarters of 2012 would be comparable with its first quarter results. The automaker said GMNA’s second quarter results were stronger due partially to how the company timed its spending, which it deferred to the third quarter. That said, the automaker said it still expects the average of its second and third quarter EBIT-adjusted in North America will be comparable to first quarter results.
“We’re executing an aggressive product plan around the world, and at the same time we are working systematically to simplify the business and truly leverage our scale to grow our margins,” said Dan Ammann, senior vice president and CFO.