NYT: G.M. Turnaround Continues With Strong Quarter

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DETROIT — General Motors said Thursday that it earned $1.3 billion in the second quarter, citing sustained progress in rebuilding operations after emerging from its government-sponsored bankruptcy last year.
The quarterly profit marked G.M.’s strongest financial performance since 2004, and set the stage for the automaker to file for an initial public offering, possible as soon as Friday. It was G.M.’s second consecutive quarterly profit.

The automaker’s results were a marked improvement over the $865 million profit in the first quarter. Revenue also rose in the quarter, to $33.2 billion, from $31.5 billion in the first. G.M. did not report second-quarter results a year ago because it spend part of the period reorganizing under bankruptcy protection.

The second-quarter profit was driven by strong results in G.M.’s core North American business, which had lost money for several years leading up to its bankruptcy filing.

GM said it had earnings before interest and taxes of $1.6 billion in North America during the quarter, a 33 percent improvement over its first quarter performance. The company’s European unit lost $200 million in the quarter, and its other international operations earned $700 million.

The automaker also added to its cash reserves in the quarter, another sign of its improving financial stability. Cash flow from operations, excluding capital expenditures, totaled $2.8 billion in the quarter. G.M. ended the period with $32.5 billion in cash and marketable securities.

G.M.’s chief financial officer, Christopher Liddell, said that the company was hitting its internal targets as it prepared for an initial offering of stock.

“I am pleased with our progress on achieving our business objectives,” Mr. Liddell said in a statement. “We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit, and delivered two consecutive quarters of profitability and positive cash flow.”


http://www.nytimes.com/2010/08/13/business/13auto.html?_r=1&hp