GM reports profit fall but highlights prominent performance in China
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E-mail Xinhua, July 26, 2018
General Motors (GM) on Wednesday reported a 2.8 percent fall in its second-quarter profits, largely due to the rising raw material prices.
Meanwhile, the leading U.S. auto maker highlighted its "all time high" sales in China in its latest earnings report.
GM pegged its second-quarter 2018 profit at US$2.4 billion, or 2.8 percent less than the same period of 2017.
"Recent and significant increases in commodity costs", along with "unfavorable foreign exchange impact" in South American countries, drove down the auto maker's profits, according to the quarterly report.
After U.S. President Donald Trump imposed additional tariffs on foreign steel and aluminum, domestic raw material prices have also been pushed up.
Anticipating "these headwinds will continue through the second half of 2018," GM has revised its full-year outlook as well.
GM China displayed a better-than-expected performance, with delivery of more than 858,000 vehicles in the second quarter. Deliveries in the first half of 2018 grew 4.4 percent, an all-time high for the period.
Baojun and Cadillac achieved record sales in the second quarter, up 6 percent and 19 percent respectively. Chevrolet continued to post double-digit growth of 22 percent, said GM.
In the United States, GM delivered more than 758,000 vehicles in the second quarter, up 4.6 percent, ahead of an industry increase of 2.2 percent.
"Our operating performance was impacted by significant headwinds from commodity costs and currency devaluations in South America," said Chuck Stevens, GM's executive vice president and CFO.
"For the rest of the year, we will focus on flawlessly executing our full-size truck launches and continue managing the business with discipline in a more challenging environment," he pledged.
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