DETROIT — General Motors said on Thursday that it earned $2.5 billion in the second quarter, a healthy 89 percent increase over its results in the period a year earlier.þþG.M., the nation’s largest automaker, reported that revenue for the period increased 19 percent, to $39.4 billion.þþThe results were driven by strong sales in G.M.’s core North American market, where it earned $2.2 billion, up from $1.6 billion in the second quarter of 2010.þþ“G.M.’s investments in fuel economy, design and quality are paying off around the world as our global market share growth and financial results bear out,” Daniel F. Akerson, G.M.’s chief executive, said in a statement.þþThe company, which posted profit in all of its automotive regions, said it earned $100 million in its European unit, which has been struggling with higher costs and sluggish sales. The results included a $100 million restructuring cost, G.M. said.þþIn Asia, G.M. reported income of $600 million, while in South America it posted income of $100 million.þþThe results were higher than analysts had expected, given the slow rate of industry sales in the American market.þþ“It’s a solid quarter,” said Daniel Ammann, G.M.’s chief financial officer. “It’s on plan. We had good revenue growth and good earnings growth.”þþG.M. ended the quarter with cash reserves and available credit of $39.7 billion, compared with $33.6 billion in the period a year earlier.þþThe company produced 2.4 million vehicles in the second quarter, compared with 2.25 million in year-earlier period. Its global market share was 12.2 percent, up from 11.6 percent in the second quarter of 2010.þþ“We were able to get prices up and incentives down, and that really highlighted the value of the product,” Mr. Ammann said. “Our goal is to drive long-term, sustained performance.”þþThe company said it expected income in the second half of the year to be “modestly lower” than in the first half, because of market conditions and the overall industry outlook.þþFor the first six months of the year, G.M.’s net income was $5.4 billion, compared with $2.2 billion in the first half of 2010.þþMr. Akerson said the company was counting on several new products to spur earnings growth.þþ“Our progress has been steady, and we’re preparing to launch more new products this year, including the Chevrolet Sonic in North America, the Opel Zafira in Europe and the Baojun 630 in China to keep the momentum going,” he said.
Source: NY Times
