General Motors raises full-year forecast after strong Q2 result

GM said Q2 net income rose to $2.87 bn, or $1.81 a share, up from $1.1 bn, or 67 cents a share, a year ago

General Motors Co raised its forecast for full-year profits after reporting a record second quarter profit that handily beat Wall Street expectations.

The world's third-largest automaker said it expects adjusted earnings before interest and taxes of $5.50 to $6.00 per share for 2016, up from a previous expectation of $5.25 to $5.75 per share.

GM said second quarter net income rose to $2.87 billion, or $1.81 a share, up from $1.1 billion, or 67 cents a share, a year ago.

More than 90% of the company's pretax profits came from North America, where profit margins rose to 12.1% from 10.5% a year before, driven by demand for pickup trucks and large sport utility vehicles.

 

GM also reported its first quarterly profit in Europe in five years, but warned that currency and market disruptions caused by Britain's decision to quit the European Union could slash $400 million from second-half results in Europe.