Reported earnings per share were down significantly.
Wayne Gerdes -
CleanMPG - Aug. 2, 2012
GM earlier today released its second quarter financials and while still profitable, its European manufacturing facilities and the Continents financial woes continue to weigh heavily on the automotive giants results.
Net revenue in the first quarter of 2012 was $37.6 billion, a decrease of $1.8 billion compared with the second quarter of 2011. Earnings before interest and tax (EBIT) adjusted was $2.1 billion, a decrease of $0.9 billion compared with the second quarter of 2011.
According to the company, the revenue fall off was due almost entirely to the strengthening of the U.S. dollar versus other major currencies.
GM earned 90 cents per share for the first quarter soundly beating the streets forecast of 75 cents on revenue of $37.6 billion.
Segment Results- GM North America (GMNA) reported EBIT-adjusted of $2.0 billion, compared with $2.2 billion in the second quarter of 2011.
- GM Europe (GME) reported an EBIT-adjusted loss of $0.4 billion, compared with EBIT-adjusted of $0.1 billion in second quarter of 2011. This widened by almost $.15 billion from the first quarter results.
- GM International Operations (GMIO) reported EBIT-adjusted of $0.6 billion, equal to the second quarter of 2011.
- GM South America (GMSA) reported breakeven results on an EBIT-adjusted basis, compared with EBIT-adjusted of $0.1 billion in the second quarter of 2011. The second quarter 2012 results include $0.1 billion in restructuring expenses.
- GM Financial earnings before tax was $0.2 billion for the quarter, compared with $0.1 billion a year ago.
2012 GM North American Outlook
At the end of the first quarter, GM indicated that GMNAs results for the second and third quarters of 2012 were expected to be comparable to the first quarter. Second quarter GMNA results were stronger in part due to timing of spending that was deferred to the third quarter. GM continues to expect that the average of its second and third quarter EBIT-adjusted in GMNA will be comparable to first quarter results.
With the significant US sales falloff of the Cruze, Malibu and even the Silverado in
July reported yesterday, the General has a tough row to hoe ahead. Adding, a large number of mid and high level exec changes occurring on North America and Europe is an obstacle as the new bosses place their own stamp on the groups they are now responsible for.
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