GM Q2 net drops 42% on Europe restructuring
DETROIT — General Motors said its net income dropped 42 percent to $ 1.66 billion in the second quarter, primarily because of the pending sale and restructuring of its European operations.
The company recorded a loss of $ 770 million from discontinued operations, which include the sale of its Opel and Vauxhall operations to PSA Group of Europe. Excluding those costs, the company recorded a profit of $ 2.43 billion, down 11 percent from a record second quarter in 2016.
Revenue from continuing operations fell 1.1 percent to $ 37 billion, mostly due to lower volumes.
In North America, earnings before interest and taxes declined 7.2 percent to $ 3.48 billion.
GM’s continuing operations topped Wall Street estimates for a ninth consecutive quarter. The earnings were equal to $ 1.89 a share, compared with a projection of $ 1.69.
“Disciplined and relentless focus on improving our business performance led to a strong quarter and very solid first half of the year,” GM CEO Mary Barra said in a statement. “We will continue transforming GM to capitalize on growth opportunities and deliver even more value for our shareholders.”
GM delivered 2.3 million vehicles in the second quarter, down slightly from about 2.4 million a year ago.
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