General Motors (GM) posted second-quarter results that beat market expectations, driven by sales of higher-margin sport utility vehicles (SUVs) and trucks.
According to Reuters on the 21st, GM's second-quarter earnings before interest and taxes (EBIT) reached $3.9 billion (5.7642 trillion won), up about 30% from $3 billion a year earlier. Adjusted earnings per share (EPS) came in at $3.57, exceeding analysts' estimate of $3.20.
Second-quarter net profit fell 31% from a year earlier to $1.3 billion, mainly reflecting about $2.3 billion in costs related to restructuring of electric vehicle plants. As a result, GM's cumulative EV-related write-downs reached a total of $11 billion.
Revenue rose 2% to $48 billion. In the North American market, the profit margin improved to 8.6% from 6.1% a year earlier, despite a 4% decline in quarterly sales volume. In China, the company recorded $83 million in equity-method income, up from $71 million a year earlier. However, this fell short of the $165 million recorded in the first quarter. Core profit from global business segments excluding China fell 7% to $190 million.
Even as the economy faces difficulties from high oil prices and inflation, GM delivered results above market forecasts and raised its full-year profit outlook by $500 million from the previous forecast, to a range of $14 billion to $16 billion. However, the company projected that results could come under pressure from tariff burdens and rising supply costs. GM maintained its previous forecast that tariffs would hit net profit by about $2.5 billion to $3.5 billion. It also projected that inflation in raw materials, computer chips, and logistics costs could reduce this year's profit by $1.5 billion to $2 billion.
In a quarterly letter to shareholders, GM Chief Executive Officer Mary Barra said, "We expect these trends to continue to strengthen our results into 2027 and beyond, as we maintain capital discipline while securing multiple drivers for margin expansion and growth."
