Ford isn't the only American automaker that's in the money. General Motors has just reported a second quarter income of $1.2 billion, although that number actually represents a year-to-year drop compared to Q2 2012. This drop can be chalked up to the expense behind launching a new line of full-size pickup trucks (the 2014 GMC Sierra and Chevrolet Silverado), as well as the acquisition of GM Korea. Aside from those one-time costs, GM reported a seven-percent increase in income before interest and taxes, to $2.3 billion.
Like Ford, GM also trimmed its European losses, but by a larger margin - where Ford's losses were $58 million lower for Q2, GM slashed $284 million over the second quarter of 2012 (the equivalent of $71 million per quarter). GM's North American success, like Ford's, can be tied largely to strong demand for pickups. Even with the changeover from the old Sierra and Silverado to the new models, Automotive News reports that full-size truck profits actually increased by five percent versus 2012. According to AN, this is GM's fourteenth straight quarter in the black since its bankruptcy in 2009.
For all the numerical details, check out GM's official press release by scrolling below.
GM Reports Second Quarter Net Income of $1.2 Billion
EPS of $0.75 including net loss from special items of $0.09 per share
EBIT-adjusted of $2.3 billion
DETROIT – General Motors Co. (NYSE: GM) today announced second quarter net income attributable to common stockholders of $1.2 billion, or $0.75 per fully diluted share. These results include a net loss from special items that reduced net income by $0.2 billion, or $0.09 per fully diluted share.
In the second quarter of 2012, GM's net income attributable to common stockholders was $1.5 billion, or $0.90 per fully diluted share.
Net income for the second quarter of 2013 included an increase in tax expense of $0.5 billion, or $0.29 per fully diluted share, compared to the second quarter of 2012.
Net revenue in the second quarter of 2013 was $39.1 billion, compared to $37.6 billion in the second quarter of 2012. Earnings before interest and tax (EBIT) adjusted was $2.3 billion, compared to $2.1 billion in the second quarter of 2012.
"We continue to perform well in the world's two most important markets, the U.S. and China," said Dan Akerson, GM chairman and CEO. "We also made further progress in our European business and saw the steady performance of our global brands Chevrolet and Cadillac. For the rest of the year, we'll focus on winning customers with high-quality vehicles at a compelling value."
GM North America reported EBIT-adjusted of $2.0 billion, compared with $1.9 billion in the second quarter of 2012.
GM Europe reported an EBIT-adjusted of $(0.1) billion, compared with $(0.4) billion in the second quarter of 2012.
GM International Operations reported EBIT-adjusted of $0.2 billion, compared with $0.6 billion in the second quarter of 2012.
GM South America reported EBIT-adjusted of $0.1 billion, compared with EBIT-adjusted of $0.0 billion in the second quarter of 2012.
GM Financial earnings before tax was $0.3 billion for the quarter, compared to $0.2 billion in the second quarter of 2012.
Cash Flow and Liquidity
For the quarter, automotive cash flow from operating activities was $4.5 billion and automotive free cash flow adjusted was $2.6 billion. GM ended the quarter with very strong total automotive liquidity of $34.8 billion. Automotive cash and marketable securities was $24.2 billion compared with $24.3 billion for the first quarter of 2013.
"Our results in this quarter were clearly pegged to winning vehicles like the Cadillac ATS, Chevrolet Impala and Opel Mokka," said Dan Ammann, GM executive vice president and CFO. " We will continue to address our business challenges head-on, execute flawless launches of our future products and most importantly, satisfy our customers."