GM 2Q profit beats estimates; N. America soars

GM 2Q profit tops Wall Street estimates, but lower international profit offsets N. America

Associated Press
GM 2Q profit beats estimates; N. America grows
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This Tuesday, July 23, 2013, photo, shows a grill of a 2013 GMC Terrain AWD SLT-1 in Pittsburgh. General Motors reports quarterly earnings on Thursday, July 25, 2013. (AP Photo/Gene J. Puskar)

DETROIT (AP) -- General Motors' second quarter profit topped expectations as solid earnings in North America offset declining profit in some international markets and more losses in Europe.

GM's second-quarter net income fell 16 percent. It earned $1.26 billion from April through June, or 75 cents per share. That compares with $1.5 billion, or 90 cents per share, a year ago.

But excluding one-time items, mainly the cost of acquiring preferred stock in Korea, GM made 84 cents per share. Analysts polled by FactSet expected 75 cents.

GM shares rose 2.3 percent to $38 in premarket trading.

GM made big money in North America on rebounding pickup truck sales. That helped to counter falling pretax profits in international operations. China profits were up, but competition from Japanese automakers forced GM to lower prices in Australia and Southeast Asian countries, the company said.

Chief Financial Officer Dan Ammann told reporters Thursday that Japanese automakers were using the weak yen to cut prices elsewhere in Asia. The yen has been falling against other currencies, making goods made in Japan less expensive when sold in other countries, including the U.S.

"We don't see that abating in the immediate term," Ammann said, adding that the company has new products and is taking other unspecified actions to boost international profits.

GM earned $1.98 billion in North America as small businesses bought more pickup trucks in the U.S. during the quarter. That was up $85 million over a year ago. The company also narrowed its European loss by $284 million to $110 million. South America profits rose to $54 million.

Revenue rose 4 percent to just over $39 billion, beating Wall Street's estimate of $37.7 billion.

Worldwide sales rose 4 percent to 2.49 million vehicles.

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