GM exceeds expectations and earns U.S. $ 5,387 million in first half

Best Growth Stock – General Motors (GM) beat market expectations after posting U.S. $ 2,524 million gain in the second quarter and U.S. $ 5,387 million in the first half of 2011, a 144.9% increase over the same period in 2010.

Earnings before interest and taxes (EBIT) amounted to U.S. $ 6,487 million in the first half of 2011, 77.5% more than last year.

The benefits, which are produced only two years after the major U.S. automaker will declare bankruptcy shortly to proceed with its restructuring, are attributable largely to the success that GM has in North America.

In the region, where GM sales in the U.S. have increased 11%, the company earned U.S. $ 5,147 million in the first half, 83.1% more than last year, after receiving U.S. $ 2,249 million in second quarter profits (41.2% increase).

But in the second quarter, GM was also able to make money in all regions where it has divided the world.

In Europe, which has become the biggest headache since leaving bankruptcy in mid-2009, GM earned $ 102 million (a significant improvement over the $ 637 million lost in the first quarter) but the half ended with $ 288 million lost in the Old Continent.

In South America, GM earned $ 57 million in the second quarter, up 70.7% from a year ago to end the first half with earnings of $ 147 million.

And in the world, GM has pooled in the department of International Operations, the company had revenues of U.S. $ 573 million, a 13.6% increase in the second quarter and U.S. $ 1,053 million gain in the first half, a decrease of 25.4%.

GM said the increased profit is the result of reduced incentives and higher prices for their vehicles, especially in North America.

The increase in prices, along with increased sales, revenues allowed will increase from U.S. Manufacturer $ 64,650 million in the first half of 2010 to U.S. $ 75,567 million during the same period 2011, 16.8% more.

GM’s results are slightly better than those obtained by Ford, which last July 26 reported $ 4.949 million profit in the first half of the year and U.S. $ 2,398 million in the second quarter.

GM expects the results of the second half of the year also are “solid” as the first six months, despite the weak economic recovery in the U.S. and European financial problems.

“Our progress has been steady and we are preparing to launch more new products this year, including Sonic Chevrolet in North America, Opel / Vauxhall Zafira in Europe and 630 in China Baojun to maintain the momentum,” he said through a statement GM CEO Dan Akerson.

GM hopes the new model by dragging new consumers to their dealers as has happened with the Chevrolet Cruze in a few months has become the second best-selling compact in America.

GM is not looking only for an increased volume of sales but the growing profitability of the new models about to be replaced.

In the case of the Cruze, the model is sold at a price above the $ 4,000 Chevrolet Cobalt that has replaced it.

Meanwhile, the company’s chief financial officer, Dan Ammann said that “our earnings and cash flow are strong and we will continue working on the fundamentals: strong brands, great products and operational advantages for creating profitable growth in all the world. “