Wall Street Reels Again as GM Declares $891m Q2 Profit

02 August 2007

DETROIT: Staggering from the recovery room after last week's shock profit by Ford, Wall Street denizens were hit with the second blow of a double whammy: General Motors announced a Q2 net surplus of $891 million (€649.84m; £437.54m).

Anticipating a loss, analysts again demonstrated their fallibility as GM declared earnings of $2.48 a share (excluding one-time items) versus consensus expectations of $1.08 a share.

Cfo Fritz Henderson reported that GM had enjoyed its best quarter in Europe in eleven years, posting a net profit of $217m versus the year-earlier loss of $39m. Sales were up 4.7% on the year-ago period.

Sales in Latin America, Africa and Middle East unit saw "explosive" growth of 20%, while in Asia they rose 8.2%.

"Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings," said ceo Rick Wagoner.

Data sourced from latimes.com; additional content by WARC staff