Better sales boost GM profit
Source: Bloomberg News |
August 5, 2011, Friday
|
Print Edition
Print Edition
GENERAL Motors, the largest US automobile maker, said second-quarter profit almost doubled on rising US sales.
Profit climbed to US$2.52 billion, or US$1.54 a share, from US$1.33 billion, or 85 cents, a year earlier, Detroit-based GM announced yesterday. Net income was US$2.99 billion.
The profit-per-share figure topped the US$1.20 estimate of 13 analysts surveyed by Bloomberg. Sales rose 19 percent to US$39.4 billion.
GM's US sales climbed 11 percent to 669,065 light vehicles in the second quarter, according to US-based researcher Autodata.
The company earned US$2.25 billion before interest and taxes, up 41 percent from a year ago. Analysts were watching GM's North American profits because rising costs in the first quarter undercut the firm's profitability in its home market. GM made US$100 million in each of Europe and South America. The company's international operations unit, which includes China, made US$600 million.
The US Treasury Department, which owns 33 percent of GM, plans to evaluate the earnings and the market's reaction before deciding whether to sell more of its investment, according to a source.
The department wants to sell its stake for at least US$33 a share, said a source. GM gained 12 cents Wednesday to US$27.17, a day after its lowest closing price since the initial public offering last November.
The US government took a 61 percent stake in GM as part of the company's bailout and bankruptcy reorganization in 2009. The Treasury sold shares equal to a 28 percent stake in November's IPO.
Profit climbed to US$2.52 billion, or US$1.54 a share, from US$1.33 billion, or 85 cents, a year earlier, Detroit-based GM announced yesterday. Net income was US$2.99 billion.
The profit-per-share figure topped the US$1.20 estimate of 13 analysts surveyed by Bloomberg. Sales rose 19 percent to US$39.4 billion.
GM's US sales climbed 11 percent to 669,065 light vehicles in the second quarter, according to US-based researcher Autodata.
The company earned US$2.25 billion before interest and taxes, up 41 percent from a year ago. Analysts were watching GM's North American profits because rising costs in the first quarter undercut the firm's profitability in its home market. GM made US$100 million in each of Europe and South America. The company's international operations unit, which includes China, made US$600 million.
The US Treasury Department, which owns 33 percent of GM, plans to evaluate the earnings and the market's reaction before deciding whether to sell more of its investment, according to a source.
The department wants to sell its stake for at least US$33 a share, said a source. GM gained 12 cents Wednesday to US$27.17, a day after its lowest closing price since the initial public offering last November.
The US government took a 61 percent stake in GM as part of the company's bailout and bankruptcy reorganization in 2009. The Treasury sold shares equal to a 28 percent stake in November's IPO.
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