GM Sees 2nd Quarter Profit Drop

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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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