Overall, the General earned $2.0 billion before interest and taxes (EBIT), up from $1.8 billion in the first quarter. Accounting for most of that was the automaker's North American operations, which earned $1.6 billion before interest and taxes. GM Europe lost $0.2 billion before interest and taxes, but that's an improvement over the $500 million loss in the first three months of the year. Finally, GM's International Operations added $0.7 billion in earning before interest and taxes.
Credit for GM's performance goes to the recovering automotive market in the U.S. that has kept GM plants busy building popular models like the Chevrolet Equinox, GMC Terrain and Cadillac SRX triplets, as well as the international success of the Chevrolet Cruze and Buick's continued popularity in China.
The good financial news for GM has signaled to many analysts that the companies march towards an initial public offering (IPO) of its stock may start as soon as tomorrow with the filing of what's called an S-1 document with the Securities and Exchange Commission. Not many details are known about the filing, but the sale of GM stock to the public will likely be one of the largest IPOs in U.S. history and help reduce, if not totally eliminate, the U.S. government's 60-percent stake in the automaker.
[Source: General Motors, Automotive News - sub. req. | Image: Dave Chidley, AP Photo/The Canadian Press]
* GM achieves second consecutive quarter of profitability and positive cash flow
* Net income of $1.3 billion and EPS of $2.55, free cash flow of $2.8 billion
DETROIT, Mich. – General Motors Company today announced its second quarter 2010 results, marked by revenue of $33.2 billion and net income attributable to common stockholders of $1.3 billion, resulting in earnings per share on a diluted basis of $2.55. GM's second quarter earnings before interest and tax (EBIT) was $2.0 billion.
GM North America had EBIT in the second quarter 2010 of $1.6 billion, up from $1.2 billion in the first quarter. GM Europe had a loss before interest and taxes of $0.2 billion, an improvement of $0.3 billion from the first quarter. GM International Operations posted EBIT of $0.7 billion, down from $1.2 billion in the first quarter.
Cash flow from operating activities was $3.9 billion and after adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion. GM ended the second quarter with $32.5 billion in cash and marketable securities, including funds in the Canadian Health Care Trust escrow.
"I am pleased with our progress on achieving our business objectives," said Chris Liddell, vice chairman and chief financial officer. "We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit, and delivered two consecutive quarters of profitability and positive cash flow."