GENERAL Motors Co announced strong second-quarter net income to common stockholders of $2.9 billion, up 157 percent compared to $1.1 billion in the second quarter of 2015. Earnings per share (EPS) diluted was a strong $1.81, compared to $0.67 in the second quarter a year ago. EPS diluted-adjusted was a record at $1.86, up 44 percent compared to $1.29 in the second quarter of 2015. The company reported records for earnings before interest and tax (EBIT) adjusted of $3.9 billion and EBIT-adjusted margin of 9.3 percent. These compare to EBIT-adjusted of $2.9 billion and EBIT-adjusted margin of 7.5 percent in the second quarter of 2015, which included the impact of $0.3 billion restructuring costs. "This was an outstanding quarter for GM," said Chairman and CEO Mary Barra. "Our results were generated by strong retail sales in the US, record sales in China and a continued emphasis on improving the performance of our operations worldwide. We'll continue to focus on driving profitable growth and leveraging our technical expertise to lead in the future of personal mobility." Net revenue of $42.4 billion was a record, compared to $38.2 billion in the second quarter of 2015. Holding exchange rates constant, net revenue was $5.0 billion higher than the second quarter of 2015. GM North America reported record EBIT-adjusted of $3.6 billion compared with $2.8 billion in the second quarter of 2015. For the quarter, EBIT-adjusted margin was a record 12.1 percent, compared to 10.5 percent a year ago. GM Europe reported EBIT-adjusted of $0.1 billion compared with breakeven EBIT-adjusted results in the second quarter of 2015. This result is the first profitable quarter since the second quarter of 2011. GM International Operations reported EBIT-adjusted of $0.2 billion compared with $0.3 billion in the second quarter of 2015. Results included China equity income of $0.5 billion in both periods. GM South America reported EBIT-adjusted of $(0.1) billion, about equal with the second quarter of 2015. GM Financial reported earnings before tax of $0.3 billion, compared with $0.2 billion in the second quarter of 2015. For the quarter, automotive cash flow from operating activities was $5.0 billion. Adjusted automotive free cash flow was $3.2 billion. GM ended the quarter with total automotive liquidity of $34.1 billion, and automotive cash and marketable securities of $20.1 billion. "When you deliver cars, trucks and crossovers customers really value, and generate efficiencies across the enterprise, great results follow," said Chuck Stevens, GM executive vice president and chief financial officer. "With our aggressive vehicle launch cadence and robust global industry sales, we are confident that we can continue to achieve strong financial performance." GM expects a higher proportion of volume from new or refreshed vehicles each year through 2020 compared to the prior five years, increasing to 40 percent of its total global volume, up from 26 percent in 2015. Based on the company's strong financial performance through the first half of 2016 and its current outlook for the second half of the year, GM now expects 2016 full year EPS diluted-adjusted to be $5.50 – $6.00, up from the previously announced $5.25 – $5.75 range. GM sold 2.4 million vehicles globally in the second quarter of 2016 to customers, about equal to the second quarter of 2015. Through June 30, the company sold 4.76 million vehicles globally. In the US, GM sold 1.44 million vehicles in the first six months of the year, which included a retail sales increase of more than 1 percent. US retail market share rose 0.4 percentage points through June, the largest retail share gain of any full-line automaker. In China, GM and its joint ventures delivered a record1.81 million vehicles during the first half of the year, an increase of 5.3 percent. In Europe, Opel/Vauxhall outperformed the industry with a 7-percent sales increase to 621,000 vehicles in the first half of the year.
