A day after its stock took a drubbing – falling to the lowest level since last year’s IPO — General Motors Co. revealed it nearly doubled its second-quarter earnings as all of its global regions returned to the black.
The once-bankrupt maker had a net income of $2.5 billion, or $1.54 per share, an 89% improvement from the $1.3 billion, or 85 cents per share, earned during the same period a year ago. Chairman and chief executive officer Dan Akerson noted it was GM’s company’s sixth consecutive profitable quarter – and the third since IPO — as the company continued to recover from its bankruptcy two years ago.
“GM’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,” Akerson said. “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/Vauxhall Zafira in Europe and the Baojun 630 in China to keep the momentum going.”
GM’s overall revenues increased 19%, or $6.2 billion to $39.4 billion, compared with the second quarter of 2010. Earnings before interest and tax, or EBIT, were $3 billion compared with $2 billion in the second quarter of 2010. There were no special items in either period.
Significantly, every region — including Europe — was in the black for the April – June quarter. In the home market, GM North America (GMNA) reported an EBIT-adjusted profit of $2.2 billion, an improvement of $0.6 billion compared with the second quarter of 2010.