General Motors released its latest earnings report before opening bell this morning, posting adjusted earnings of $1.86 per share, a new record, on $42.4 billion in revenue, also a new record. Analysts had been expecting earnings of $1.52 per share on $38.2 billion in sales. In last year’s second quarter, the automaker reported $38.2 billion in revenue and adjusted earnings of $1.29 per share.
General Motors records strong U.S. sales
GM’s reported earnings nearly doubled from 67 cents per share last year to $1.81 per share this year on the back of strong sales in the U.S. Adjusted EBIT was $3.9 billion, while the adjusted EBIT margin was 9.3%. In last year’s second quarter, the automaker posted adjusted EBIT of $2.9 billion and an adjusted EBIT margin of 7.5%.
“This was an outstanding quarter for GM,” General Motors Chairman and Chief Executive Mary Barra said in a statement. “Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving the performance of our operations worldwide. We’ll continue to focus on driving profitable growth and leveraging our technical expertise to lead in the future of personal mobility.”
GM North America’s adjusted EBIT surged to a new record of $3.6 billion from $2.8 billion in the year-ago quarter. GM Europe recorded its first profitable quarter since the second quarter of 2011, coming in with adjusted EBIT of $100 million, against last year’s breakeven result. The adjusted EBIT for the GM International Operations was $200 million, a decline from last year’s $300 million. GM South America recorded adjusted EBIT that was about flat with last year at -$100 million, while GM Financial’s earnings before tax rose to $300 million from $200 million in the year-ago quarter.
General Motors sold 2.4 million vehicles globally in the second quarter, which was about flat with last year’s second quarter. It sold 1.44 million vehicles in the U.S., including a more than 1% increase in retail sales.
GM raises outlook for adjusted earnings
General Motors expects full-year adjusted earnings to fall between $5.50 and $6 per share, against the consensus of $5.66 per share. The previous guidance was for adjusted earnings of between $5.25 and $5.75 per share.
Shares of GM surged in premarket trading, climbing by as much as 4.45% to $32.89.