General Motors Company (GM) Reports Global Revenue Is Up 4% To $39 Billion
General Motors Company (NYSE:GM) has reported that their net income has dropped 19% in the second quarter, which is a sharp drop in pretax profits in Asia. General Motors Southeast Asia operations’ head Martin Apfel said that the auto giant will be opening a plan in Bekasi, Indonesia, this year. GM saw growth in China, but they are facing increased competition other Asian countries. GM’s net income was $1.2 billion for the quarter, compared to $1.49 billion in the same period one year ago. The company was able to narrow their losses in Europe even though there is weak economic conditions there.
Revenues: GM’s global revenues are up 4% to $39 billion. Worldwide vehicle sales including joint ventures are up 4% to 2.49 million. GM earned $1.97 billion in pretax income for the region during the quarter, which is a 4% gain from $1.89 billion one year ago.
Europe: GM had a pretax loss of $110 million in Europe compared to a loss of $394 million in the same period last year. In Europe, GM has revamped their management team with outside hires and increased the number of products there.
Asia: GM’s performance in Asia has declined. The company reported pretax profits of $228 million for that region, which is a 63% decrease from $627 million a year ago.
South America: GM reported that their results improved to a $54 million pretax profit, compared to $16 million a year ago.
“We continue to perform well in the two most important markets, the U.S. and China,” stated GM CEO Dan Akerson. “We also made progress in our European business and saw the steady performance of our global brands, Chevrolet and Cadillac.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry