General Motors Company Q2 FY17, Caterpillar Inc. Q2 FY17 Earnings

  • General Motors Company Q2 FY17, Caterpillar Inc. Q2 FY17 Earnings

General Motors Company Q2 FY17, Caterpillar Inc. Q2 FY17 Earnings

USA auto maker General Motors Company (GM) said on Tuesday that second-quarter earnings were down sharply, mainly because of costs associated with ceasing operations in various countries, including Venezuela where the socialist government seized the company's assets in spring.

China - GM's No. 2 profit generator and top market by sales volume - continued to provide steady income of about $500 million, even amid flattening consumer demand, as sales of pricier SUVs and GM's Cadillac luxury line padded profits. Here are the key figures and highlights.

GM's earnings when adjusted for the discontinued operations and charges for restructured worldwide operations were $1.89 a share, up 5.6 per cent from the year-earlier quarter and above the average of analysts' forecast of $1.68. Consolidated adjusted EBIT amounted to $3.7 billion, while the adjusted EBIT margin stood at 10%. The earnings were equal to $1.89 a share, compared with a projection of $1.69. "We will continue transforming GM to capitalize on growth opportunities and deliver even more value for our shareholders".

GM's Chevrolet Bolt EV with autonomous vehicle technology started production in Q2.

General Motors Co. provided a clearer portrait of its future, revealing how big a bet it is placing on the continued strength of US buyers.

One of General Motors' main objectives over the past couple years has been improving its return on invested capital, or ROIC. When factoring in special items totaling about $650 million including GM International Operations restructuring, an ignition switch legal charge and charges related to deconsolidating business in Venezuela, GM's earnings per share totaled $1.89.

GM also had a series of quiet victories across the globe.

Chief Financial Officer Chuck Stevens cautioned in a call with analysts that production of its profitable large pickup trucks in North America could fall by 10 percent in 2018 as a new generation of trucks is launched. Automakers have reported declining sales for the past four months.

Image source: General Motors' July 25, 2017 Q2 presentation.

For the second quarter, GM posted operating profit of $1.89 per share, breezing past Wall Street expectations of $1.69 per share. As summer is often accompanied by plant shut downs, inventories tend to increase in preparation, and that's partly why GM's inventory increased 273,000 units from the prior year.