DETROIT (Reuters) – General Motors Co (GM.N) on Tuesday reported a better-than-expected quarterly net profit, helped by cost cuts, and promised to cut production in the second half to curtail its burgeoning U.S. inventory of unsold vehicles.
The No. 1 U.S. automaker also maintained its earnings outlook for 2017 despite falling revenue. Shares were up 0.8 percent at $36.12.
GM Chief Financial Officer Chuck Stevens cautioned in a call with analysts that production of its profitable large pickup trucks in North America could fall by 10 percent in 2018 as a new generation of trucks is launched.
However, Stevens said GM could maintain 10 percent pre-tax profit margins in North America if overall sales remain close to 17 million vehicles a year.
The results excluded nearly $800 million in losses from the company’s European operations, which are being sold to France’s PSA Group (PEUP.PA).
GM reported second-quarter net income of $2.4 billion or $1.60 per share, down from $2.8 billion or $1.74 per share a year earlier.
Excluding one-time charges, earnings per share of $1.89 beat analyst estimates of $1.69.