DETROIT – General Motors said Thursday that its second-quarter profit dropped 41 percent as losses in Europe dampened a strong performance in its core North American market.þþG.M., the nation’s largest automaker, said it earned $1.5 billion in the quarter compared with $2.5 billion in the same period last year.þþGlobal revenue also fell, to $37.6 billion from $39.4 billion in the second quarter of 2011.þþThe company said it earned an operating profit of about $2 billion in North America, compared with $2.2 billion a year ago. G.M.'s international division, which primarily includes sales in Asia, earned $557 million, compared with $573 a year earlier.þþBut General Motors continued to struggle in Europe, where economic conditions have driven auto sales down to their lowest point in more than a decade.þþG.M. said it lost $361 million in Europe during the second quarter, compared with an operating profit of $102 million a year ago. The company also posted a loss of $19 million in South America during the quarter.þþThe company recently replaced several of its top executives in Europe, including the chief executive and chief financial officer. G.M. is also planning to close at least one plant in Europe by 2016.þþThere are no immediate plans to announce more job cuts or factory closings in Europe, said Dan Ammann, G.M.'s chief financial officer.þþMr. Ammann also declined to set a target of when General Motors might once again make money in the region. Its major brand there, Opel, has been steadily losing market share and sales, and like many automakers it is saddled with overcapacity in a declining market.þþ“The biggest fundamental driver is still going to be the macroeconomic environment,” Mr. Ammann told reporters today at company headquarters in Detroit.þþG.M. said it sold 2.39 million cars during the quarter, compared with 2.32 million a year ago. The automaker said it had $32.6 billion in cash reserves and other liquid assets at the end of the quarter.þþDespite the troubles in Europe, G.M.'s chief executive, Daniel Akerson, called the quarterly results “solid” and further proof that the company has turned around since its government-financed bankruptcy in 2009.þþ“Despite the challenging environment, G.M. has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade,” Mr. Akerson said in a statement.þþMr. Ammann declined to answer questions about the sudden departure earlier this week of Joel Ewanick, G.M.'s global marketing chief. G.M. officials said he failed to comply with corporate policy. People familiar with the matter said it involved negotiations for a sponsorship deal with a European soccer club.
Source: NY Times
