General Motors Second-Quarter Results Slide Year-on-Year But Best Analysts’ Expectations

General Motors (GM) reported second-quarter results that declined year-on-year as the Chevrolet and GMC parent sold fewer vehicles, but the slide wasn’t as steep as Wall Street expected.

Adjusted earnings decreased to $1.64 a share from $1.81 a share previously, while the consensus on Capital IQ was for $1.45 a share. Revenue fell 1.9% to $36.1 billion in the second quarter, slightly ahead of the Street’s expectations for $36 billion.

Shares in the Detroit-based automaker were rising more than 3% in pre-market trading.

“We had a solid second quarter, and expect the second half of the year to be stronger than the first half,” said Chief Financial Officer Dhivya Suryadevara. “Our confidence in our full-year outlook is based on our strong full-size truck rollout, other key launches and ongoing cost savings.”

Total US vehicle sales slowed to 747,000 in the three months ended June 30 from 758,000 a year earlier as Chevrolet cars dropped to 90,000 from 126,000 previously. Trucks were down to 248,000 from 261,000 while crossovers climbed to 161,000 from 141,000.

Sales in the Asia Pacific, Middle East and Africa region fell to 900,000 vehicles compared with 989,000 in the prior quarter. South America sales dipped to 163,000 from 164,000.

“Due to China’s economic slowdown, China industry unit sales are expected to remain weak through the second half of the year,” GM said. The company’s China unit will see about 20 new vehicle launches including SUVs. Sales in China were down by about 100,000 to 754,000 vehicles, GM said.

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