General Motors net profit falls from changes to its worldwide business

General Motors net profit falls from changes to its worldwide business

Revenue for the quarter was $37 billion, down from $37.4 billion a year earlier and below the $40.1 billion expected by analysts. In the same period a year ago, the company reported EPS of $1.79 on revenues of $37.38 billion.

The No. 1 USA automaker also maintained its earnings outlook for 2017 despite falling revenue. But when the European loss and one-time items are stripped out, GM still made $2.4 billion from continuing operations, or $1.89 per share.

The company has agreed to sell its Opel and Vauxhall divisions in Europe to the French automaker PSA Group by the end of this year.

The company took three significant one-time charges in the quarter: $460 million for the restructuring of its worldwide operations; $114 million for the ignition switch recall; and $80 million for the deconsolidation of its Venezuelan operations.

G.M., the nation's largest automaker, reported net income of $1.66 billion during the quarter that ended in June, compared with $2.87 billion in the same period in 2016.

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Global vehicle deliveries were flat year-over-year, as was Q2 market share. Fleet sales declined from 20.5% to 19.1% of retail sales. That was down $100 million from a year ago, due largely to a $200 million drop in North America that he attributed to production cuts as the company ramps up to launch its new full-size pickup truck.

However, Stevens said GM could maintain 10 percent pre-tax profit margins in North America if overall sales remain close to 17 million vehicles a year. We will continue transforming GM to capitalize on growth opportunities and deliver even more value for our shareholders.

Looking ahead, GM reiterated its full-year earnings guidance of $6.00 to $6.50 per share.

GM notched higher sales in China compared with the year-ago period, but its overall worldwide sales declined from the 2016 period. Shares were up 0.7 percent at $36.07 at mid-afternoon. The 12-month price target for the shares was $39.27 before this morning's report.