General Motors profit helped by delayed spending in the US

City A.M. Reporter
GENERAL Motors (GM) posted a stronger-than-expected quarterly profit yesterday as its loss in Europe was not as bad as feared, and its results were boosted by delayed spending in North America.

Analysts said GM’s North American outperformance added 14 cents to the second-quarter results, helping the company top Wall Street’s expectations by 16 cents.

However, GM, which delayed the spending to the third quarter, said its average profit outlook for the second and third quarters combined in North America would still be the same as previously forecast, suggesting analysts will need to cut their estimates for the third quarter.

GM had previously said its second and third quarter operating profit in North America would be similar to the $1.7bn it reported in the first quarter. It earned $1.97bn in the second quarter, implying it will earn about $1.4bn in the third quarter, analysts said.

Net income attributable to common shareholders in the second quarter fell 41 per cent to $1.49bn, or 90 cents a share, compared with $2.52bn, or $1.54 a share, in the year-earlier quarter.