GM Sees 2nd Quarter Profit Drop

Bloomberg News - August 2, 2012

Sec­ond-quar­ter prof­it slid by 38 per­cent as GM strug­gles to turn around its mon­ey-los­ing Opel unit and Euro­pean loss­es, not quite as bad as expect­ed. Hedge-fund man­ag­er David Ein­horn, Green­light Cap­i­tal Re Ltd, says GM is poised to rebound because there “is fur­ther embed­ded val­ue.”

Find out more about GM’s “10th Prof­it”.

The sec­ond-quar­ter results, GM’s 10th straight prof­itable quar­ter, were helped by con­tin­ued prof­its in North Amer­i­ca and Asia where sales have been grow­ing. Adjust­ed oper­at­ing prof­its in North Amer­i­ca fell to $1.97 bil­lion and in Asia slid to $557 mil­lion. GM had an oper­at­ing loss in South Amer­i­ca of $19 mil­lion.

After div­i­dends and oth­er costs relat­ed to pre­ferred stock, GM report­ed a sec­ond-quar­ter prof­it of $1.5 bil­lion attrib­ut­able to com­mon stock­hold­ers.



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