GM profit beats Street

Company's net income in the second quarter fell to $1.2 mn from $1.5 mn

General Motors Co on Thursday posted a higher-than-expected quarterly profit on strong demand in North America and cost-cutting in its struggling European business. GM's net income in the second quarter fell to $1.2 million, or 75 cents a share, from $1.5 million, or 90 cents a share, a year earlier.

Excluding one-time items, mostly related to the acquisition of preferred shares in GM Korea, the automaker earned 84 cents a share, nine cents above the average forecast of analysts polled by Thomson Reuters I/B/E/S. GM shares were up two per cent in premarket trading. Revenue rose four per cent to $39.1 billion, above the $38.37 billion analysts had expected.