Revenues declined modestly to $36.76 billion during the three-month period. The strong performance by GM Financial was partially offset by unfavorable pricing and product mix in the auto division.
The Detroit, Michigan-based company revised down its 2018 guidance citing cost and currency-related headwinds. Full-year earnings are currently estimated to be $5.14 per share, while adjusted earnings are forecast for be $6 per share. The current estimate for auto operating cash flow is $11.5 billion.
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GM delivered a total of about 2.1 million vehicles globally during the June-quarter, broadly matching the numbers seen in the second quarter of 2017. The high demand for the company’s SUVs and trucks pushed up its US market share to 16.5%. While the Americas continued to witness demand growth, shipments to the other leading markets declined.
Taking forward its autonomous vehicle initiative, the company invested $1.1 billion in GM Cruise during the second quarter, amidst plans to spin off the driverless car division.
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“We faced significant external challenges, but delivered solid results this quarter. The fundamentals of our business are strong and we remain focused on our plan – delivering great vehicles, developing technologies to transform personal mobility and creating long-term shareholder value,” said CEO Mary Barra.
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Among the other automotive manufactures, Ford Motor (F) will be announcing its second quarter results today after the market closes.
GM shares fell more than 5% in premarket trading following the earnings announcement. The stock had gained more than 10% over the past 12 months, and closed the last trading session slightly higher.
