General Motors (GM) has announced record sales for this year’s second quarter.
The Detroit-based automaker issued Q2 financial results that beat Wall Street forecasts across the board and raised its forward guidance.
General Motors reported earnings per share (EPS) of $3.06 U.S. versus $2.75 U.S. that was expected on Wall Street.
Revenue for the April through June quarter totaled $47.97 billion U.S. compared to $45.46 billion U.S. that was the consensus forecast of analysts.
General Motors said its revenue was a new quarterly record, having risen 7.2% from $44.75 billion U.S. a year earlier.
The strong results were attributed to a rise in sales as well as the restructuring of money-losing operations such as self-driving vehicles and the company’s China business.
The company’s North American operations, driven by truck sales, were largely responsible for the strong Q2 results.
General Motors said that its North American division earned $4.43 billion U.S. in Q2, up nearly 40% from a year earlier. The unit reported a profit margin of 10.9%.
In terms of forward guidance, General Motors said that it expects full-year earnings of $9.50 U.S. to $10.50 U.S. a share. That’s up from previous guidance of $9 U.S. to $10 U.S. a share.
In addition to its Q2 numbers, General Motors said it is indefinitely suspending production of its Cruise Origin self-driving vehicle.
The company is also in the process of restructuring a joint venture in China amid continuing losses. General Motors’ Chinese operations posted an equity loss of $104 million U.S. in Q2.
The automaker reiterated plans to produce 200,000 to 250,000 electric vehicles for the North American market this year despite slower-than-expected consumer demand.
General Motors’ electric vehicle deliveries during Q2 increased 40% from a year earlier to 21,930 units. However, electric vehicles still make up only 3% of the company’s total sales.
The stock of General Motors gained 5% on news of its Q2 financial results and is now up more than 30% in the last 12 months and trading at $49.56 U.S. per share.
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