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- GM reported second-quarter results that beat analysts expectations: $1.66 per share versus $1.44 anticipated.
- The results were powered by strong truck sales in the US market.
- A weaker Chinese market, however, dragged down international profits.
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General Motors on Thursday posted a flat quarterly net profit that handily beat market expectations, helped by US sales of high-margin pickup trucks, SUVs and crossovers.
The top American automaker reported second-quarter net income of $2.42 billion, or $1.66 per share, compared with $2.39 billion or $1.66 per share a year earlier. Excluding one-time items, GM earned $1.64 per share, well above analyst expectations of $1.44.
Of critical importance to the results were the automaker’s new line of pickups, recently redesigned and now doing battle with similarly revamped vehicles from Ford and RAM.
"Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come," GM CEO Mary Barra said in a statement.
"We will continue operating our business with discipline, and the vision needed to deliver a stronger future for our employees, customers and shareholders."
China has become a source of concern for the automaker.
"Due to China’s economic slowdown, China industry unit sales are expected to remain weak through the second half of the year, with industry deliveries projected to be down for the full year," GM said in a statement. The company cited a $400-million income drag in China, "offset by better performance" outside the country internationally.
In additional to the success with pickups, GM also touted its newly launched eighth-generastion Corvette.
"In anticipation of strong customer demand, the company is increasing production of the new model, adding a second shift and more than 400 hourly jobs at its Bowling Green Assembly plant in Kentucky," GM said. "Since 2011, GM has invested more than $900 million in this facility."
GM shares were trading higher in pre-market action on Thursday, up 3% to $41.50. Year-to-date, GM stock has risen by 25%.
Markets Insider
(Reuters reporting By Nick Carey; Editing by Nick Zieminski)
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Source: Business Insider – feedback@businessinsider.com (Matthew DeBord)