Net Income Rises, Revenues Fall as GM Reports Q2 Earnings

GM has just reported second-quarter earnings. And thanks to pickup sales and cost cuttings, net income was up 1.6 percent.

That’s a net income of $2.4 billion on revenues of $36.1 billion. Those revenues, though, were down 1.9 percent and earnings before interest and taxes were down 5.6 percent to $3 billion from that time last year.

GM’s reported earnings per share were $1.64, beating analysts estimates that were closer to $1.44.

What led the net income growth? Full-size trucks, to little surprise. Sales of the all-new Silverado and Sierra crew cabs are up double digits for the second quarter. And GM says it gained nearly three percentage points of the retail light-duty truck market between Q1 and Q2. Furthermore, production of the more affordable regular and double cabs started in March, with the expectation to help grow this further.

The HD pickups launched in June, again with a focus on high-margin crew cab trucks. GM also announced that high anticipated demand for the C8 Corvette has meant adding a second shift and 400 hourly jobs at the Bowling Green Assembly plant.

Crossover sales were up 17 percent year over year, setting a new record. Equinox and Traverse set Q2 records, every Buick crossover was up, and the GMC Acadia showed its best first half ever, GM says.

GM China saw 100,00 fewer sales than in the same quarter last year. Still outselling the US, but by just 10,000 units. That’s amid an overall market decline in that country.

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