Aug. 4 (Bloomberg) -- General Motors Co., the largest U.S.
automaker, said second-quarter profit almost doubled on rising
U.S. sales.
Profit climbed to $2.52 billion, or $1.54 a share, from
$1.33 billion, or 85 cents, a year earlier, Detroit-based GM
said today in a statement. Net income was $2.99 billion, GM
said.
The $1.54 a share figure topped the $1.20 a share average
estimate of 13 analysts surveyed by Bloomberg. Sales rose 19
percent to $39.4 billion.
GM’s U.S. sales climbed 11 percent to 669,065 light
vehicles in the second quarter, according to Autodata Corp., a
researcher based in Woodcliff Lake, New Jersey.
The nation’s largest automaker earned $2.25 billion before
interest and taxes, up 41 percent from a year ago. Analysts were
watching GM’s North American profits because rising costs in the
first quarter undercut the automaker’s profitability in its home
market.
In Europe, GM made $100 million. The company’s
international operations unit, which includes China, made $600
million and the company made $100 million in South America.
Treasury Stake
The U.S. Treasury Department, which owns 33 percent of GM,
plans to evaluate the earnings and the market’s reaction before
deciding whether to sell more of its investment, a person
familiar with the matter said last month. The department wants
to sell its stake for at least the IPO price of $33 a share and
would prefer to sell in the high-$30 range, a person familiar
with the matter has said.
GM gained 12 cents yesterday to $27.17, a day after its
lowest closing price since the IPO in November.
The U.S. took a 61 percent ownership of GM as part of the
automaker’s government-led bailout and bankruptcy reorganization
in 2009. The Treasury sold shares equal to a 28 percent stake in
the IPO.
Some investors are wary of getting back in until auto sales
improve and Treasury sells some stock, said Itay Michaeli, an
analyst with Citi Capital Markets. U.S. deliveries ran at a
seasonally adjust annual rate of more than 12 million for seven
months before slowing in May and June.
automaker, said second-quarter profit almost doubled on rising
U.S. sales.
Profit climbed to $2.52 billion, or $1.54 a share, from
$1.33 billion, or 85 cents, a year earlier, Detroit-based GM
said today in a statement. Net income was $2.99 billion, GM
said.
The $1.54 a share figure topped the $1.20 a share average
estimate of 13 analysts surveyed by Bloomberg. Sales rose 19
percent to $39.4 billion.
GM’s U.S. sales climbed 11 percent to 669,065 light
vehicles in the second quarter, according to Autodata Corp., a
researcher based in Woodcliff Lake, New Jersey.
The nation’s largest automaker earned $2.25 billion before
interest and taxes, up 41 percent from a year ago. Analysts were
watching GM’s North American profits because rising costs in the
first quarter undercut the automaker’s profitability in its home
market.
In Europe, GM made $100 million. The company’s
international operations unit, which includes China, made $600
million and the company made $100 million in South America.
Treasury Stake
The U.S. Treasury Department, which owns 33 percent of GM,
plans to evaluate the earnings and the market’s reaction before
deciding whether to sell more of its investment, a person
familiar with the matter said last month. The department wants
to sell its stake for at least the IPO price of $33 a share and
would prefer to sell in the high-$30 range, a person familiar
with the matter has said.
GM gained 12 cents yesterday to $27.17, a day after its
lowest closing price since the IPO in November.
The U.S. took a 61 percent ownership of GM as part of the
automaker’s government-led bailout and bankruptcy reorganization
in 2009. The Treasury sold shares equal to a 28 percent stake in
the IPO.
Some investors are wary of getting back in until auto sales
improve and Treasury sells some stock, said Itay Michaeli, an
analyst with Citi Capital Markets. U.S. deliveries ran at a
seasonally adjust annual rate of more than 12 million for seven
months before slowing in May and June.
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