DETROIT — General Motors said Tuesday that its second-quarter profit dropped 42 percent from a year earlier, primarily because of losses associated with the pending sale of its European operations.þþG.M., the nation’s largest automaker, reported net income of $1.66 billion during the quarter that ended in June, compared with $2.87 billion in the same period in 2016. But adjusted earnings per share rose to $1.89, from $1.79 a share a year ago, beating Wall Street estimates of about $1.70.þþThe company has agreed to sell its Opel and Vauxhall divisions in Europe to the French automaker PSA Group by the end of this year.þþThat move is part of a broader strategy by G.M. to downsize its least profitable businesses, as it shifts more resources into new technology such as self-driving and electric vehicles.þþG.M.’s chief executive, Mary T. Barra, said the company was taking a disciplined approach to refocusing its operations. “We will continue transforming G.M. to capitalize on growth opportunities and deliver even more value to our shareholders,” she said in a statement.þþThe company reported revenue for the quarter of about $37 billion, which represented a slight decline from $37.4 billion in the comparable period last year.þþThe company reported a loss of $770 million on discontinued operations in Europe, and also absorbed $654 million in one-time charges for international restructuring moves and costs related to its recall of millions of vehicles with defective ignitions linked to 124 deaths.þþThe company is no longer reporting income for discontinued operations, such as its European division.þþFor the quarter, G.M. said that pretax profits slipped in its core North American unit. The company said it earned $3.48 billion in the region, compared to $3.75 billion a year ago.þþThe results reflect slower sales in the United States market for new vehicles. Over all the industry is beginning to see sales drop in the American market after two consecutive record years.þþG.M. has been cutting shifts at assembly plants in the United States that produce passenger cars, which have been losing market share to faster-selling truck and sport utility vehicles.
Source: NY Times
