Net earnings of $ 1.1 billion.
26 July 2105
Sales growth in the US SUVs and luxury vehicles in China led GM to significant earnings growth in 2015. The market for large displacement vehicles benefits from the reduction in oil prices.
General Motors announced on Thursday, July 23 $ 1.1 billion net income, which will be delivered to shareholders during the second quarter. This sharp increase from the $ 200 million the same period in 2014, due to the fact that US consumers seem to flock in large cars and SUV type vehicles.
GM also expects in the second half of its operating income to exceed $ 5 billion as in the first half the company count on higher profits in China and US, which would offset the weakness in some emerging markets .
The number one US auto manufacturer exceeded the estimates by analysts, despite losing his share of the US market and the threat of economic slowdown in China, the largest market for General Motors. Weighted earnings per share for the second quarter amounted to $ 1.29, well above analysts’ forecasts for $ 1.08.
Revenues decreased by $ 1.4 billion reaching at $ 38.2 billion. However, the company saw the profits increased due to the consumer response to lower oil prices, which led to higher sales of large vehicles in the US and luxury vehicles in China.
“The first two quarters of the year ware strong, as we fully capitalized on the dynamic North American market and we maintained our strength in China, despite the difficult market conditions,” said the CEO of GM, Mary Barra, in a statement. “We aim to improve earnings and our profit margins this year, and we move according to this plan. We believe that our results in the second half of the year will be even better than the first half, and I’m sure we will meet our targets for 2016 “.
GM said a 10.2% net profit margin in China recorded, while in North America operating margins increased by 10.5. GM expects an operating margin in North America of 10% by 2016.
The second-quarter net income included a $ 1.1 bn. in special charges related to the devaluation in Venezuela.