GM’s Profit Nearly Doubles In The Quarter
General Motors Company (NYSE:GM) has reported their quarterly profit today. GM’s quarterly profit nearly doubled, which beat the expectations of Wall Street. GM took a larger share of global sales and they raised their prices on its vehicles.
After coming out of bankruptcy, GM CEO Dan Akerson said that the company cut enough costs to ride through the recession. The auto industry sales as a whole dropped in the second quarter. GM CFO Dan Ammann called the quarter a “good building block” for the company.
GM is in the process of selling smaller and more fuel-efficient cars like the Chevrolet Cruze and the Chevrolet Volt. A good portion of GM’s profit heavily relies on their more profitable trucks in the U.S. market.
GM’s net income in the second quarter grew to $2.52 billion from $1.33 billion. The company’s revenue grew 19% to $39.4 billion, which is above the $36.74 billion that analysts were expecting.
GM came out of bankruptcy after the $52 billion financial bail-outs in 2009. The U.S. Treasury still owns 32% of GM’s common shares. GM boosted their second-quarter EBIT by $1 billion by increasing their prices globally.
[Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry