General Motors Reports $2.4B in Second-quarter Profits

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General Motors Co. in Detroit today announced second-quarter 2018 results reflecting profitability in all core operating segments and the second consecutive quarter of records for China and GM Financial. Results included the unfavorable impact of rising commodity costs and foreign currency devaluations in South America.

“We faced significant external challenges but delivered solid results this quarter,” says Mary Barra, chairman and CEO. “The fundamentals of our business are strong, and we remain focused on our plan – delivering great vehicles, developing technologies to transform personal mobility, and creating long-term shareholder value.”

The company reported revenue of $36.8 billion. Other second-quarter 2018 highlights include an EPS-diluted of $1.66 and an EPS diluted-adjusted of $1.81.

The GM North America EBIT-adjusted was $2.7 billion and had a margin of 9.4 percent. The GM Cruise EBIT-adjusted of $200 million is on-plan and reflects continued spending on autonomous vehicles as the company moves to commercialization.

The GM Financial EBT-adjusted of $500 million was a record for the company, as earning assets grew 12 percent to $90.4 billion, supporting expected long-term earnings growth.

Increases in commodity costs and unfavorable foreign exchange impact of the Argentine peso and Brazilian real have negatively affected business expectations. GM expects a continuation of these trends and revised its full-year outlook to include an EPS diluted of about $5.14, EPS diluted-adjusted of about $6, auto operating cash flow to about $11.5 billion, and adjusted auto free cash flow to about $4 billion.

More information can be found here.

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