This is, arguably, the strongest GM top management team since the Sloan years.
General Motors Co. (NYSE: GM) today announced second-quarter net income to common stockholders of $2.9 billion, up 157 compared to $1.1 billion in Q2 of 2015 based on the sales of 2.4 million vehicles – flat year-over-year. Through June 30, the company sold 4.76 million vehicles globally. Earnings per share (EPS) diluted were $1.81, compared to $0.67 in the second quarter a year ago.
GM declared a Q3 2016 dividend of 38 cents per share on the company’s common stock. The Q3 dividend is payable Friday, Sept. 23, 2016 to all common stockholders of record as of Friday, Sept. 9, 2016.
The results came from China and North America with a little help from GM Financial. EPS diluted-adjusted was a record at $1.86, up 44% compared to $1.29 in the second quarter of 2015. The company reported records for earnings before interest and tax (EBIT) adjusted of $3.9 billion and EBIT-adjusted margin of 9.3%. These compare to EBIT-adjusted of $2.9 billion, and EBIT-adjusted margin of 7.5% in the second quarter of 2015, which included $0.3 billion restructuring costs.
“Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving the performance of our operations worldwide, “said Mary Barra, GM’s Chairman and CEO.
In the U.S., GM sold 1.44 million vehicles in the first six months of the year, which included a retail sales increase of barely more than 1%. U.S. retail market share rose 0.4%age points through June, the largest retail share gain of any full-line automaker. In China, GM and its joint ventures delivered a record 1.81 million vehicles during the first half of the year, an increase of 5.3%. In Europe, Opel / Vauxhall outperformed the industry with a 7% sales increase to 621,000 vehicles in the first half of the year.
- GM North America reported record EBIT-adjusted of $3.6 billion compared with $2.8 billion in the second quarter of 2015. For the quarter, EBIT-adjusted margin was a record 12.1%, compared to 10.5% a year ago.
- GM Europe reported EBIT-adjusted of $0.1 billion compared with breakeven EBIT-adjusted results in the second quarter of 2015. This result is the first profitable quarter since the second quarter of 2011.
- GM International Operations reported EBIT-adjusted of $0.2 billion compared with $0.3 billion in the second quarter of 2015. Results included China equity income of $0.5 billion in both periods.
- GM South America reported EBIT-adjusted of $(0.1) billion, about equal with the second quarter of 2015.
- GM Financial reported earnings before tax of $0.3 billion, compared with $0.2 billion in the second quarter of 2015.
