DETROIT (WWJ) – GM posted solid earnings of $2.4 billion in the second quarter of 2017. The earnings are off 11 percent from last year, mostly because of costs incurred in the sale of GM’s European brands. The numbers did come in above Wall Street expectations.
“Disciplined and relentless focus on improving our business performance led to a strong quarter and very solid first half of they year,” said GM CEO Mary Barra.
The bulk of GM’s earnings came in its North American home market, which posted a $3.5 billion pre-tax profit. That number is important, as it’s what profit sharing checks are based on. GM also made money in its International Operations–about $300 million. They broke even in Latin America, and are no longer reporting results in Europe.
“Strong results in North America and China, solid improvements in South America and continued growth of GM Financial drove another strong quarter,” said GM Chief Financial Officer Chuck Stevens. “With an aggressive launch cadence still ahead this year, we are on track to meet our financial commitments for 2017.”
GM has already told investors that it expects 2017 to be a better year financially than 2016.
GM has been actively adding new crossover models, including new versions of its mid-size SUV’S and it’s compact Equinox utility. There are reports that it’s considering canceling several car based products…reports that GM is not commenting on.
Analysts say GM has also done a good job of keeping a watch on incentives, and keeping its production in line with sales.
Barra says they expect further strength as the year goes on.
“We will continue transforming G to capitalize on growth opportunities and deliver even more value for our shareholders.”