GM posts stronger than expected second-quarter profit

(Reuters) - General Motors Co on Thursday posted a smaller-than-expected loss in Europe that helped the No. 1 U.S. automaker post a better-than-expected second-quarter profit.

GM's North American unit also reported stronger-than-expected results although the company attributed some of that to spending that was deferred to the third quarter.

"We clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America," GM Chief Executive Dan Akerson said in a statement.

Net income attributable to common shareholders in the second quarter fell to $1.49 billion, or 90 cents a share, compared with $2.52 billion, or $1.54 a share, in the year-earlier quarter. Analysts polled by Thomson Reuters I/B/E/S had expected 74 cents a share.

Revenue fell to $37.6 billion from $39.4 billion a year before as the stronger U.S. dollar hurt results. Analysts had expected $38.58 billion.

GM reported an operating loss in its Europe unit of $361 million, compared with a profit a year earlier of $102 million. However, that loss was smaller than some analysts had expected. RBC Capital Markets analyst Joseph Spak had expected a loss of $528 million, while Jefferies analyst Peter Nesvold had expected a loss of $432 million.

GM Chief Financial Officer Dan Ammann said Europe remains tough and would not predict when the company would return to profits in that region. He said the industry overall will face a challenging environment there in the second half of the year.

Shares of GM were rose slightly to $19.96 in premarket trading from Wednesday's closing price of $19.66 on the New York Stock Exchange.

(Reporting By Ben Klayman and Paul Lienert in Detroit; Editing by Gerald E. McCormick)

Source: http://news.yahoo.com/gm-posts-stronger-expected-second-quarter-profit-114919709--business.html

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