DETROIT -- General Motors delighted investors and analysts Wednesday by posting $1.2 billion in operating profit for the second quarter -- a $1.4 billion improvement over the same quarter last year.
"Our turnaround has not just gained traction, it's accelerating into high gear," said GM CEO Rick Wagoner.
Wagoner has been under pressure to show improvement as GM studies a possible three-way alliance with Nissan Motor Co. and Renault SA. He said the results vindicated the company's turnaround strategy.
"While significant work still remains, our ability to identify and initiate $9 billion in cost cuts over the past year is unprecedented in this industry," Wagoner said.
GM's loss in North American operations -- the focus of its restructuring -- narrowed to $85 million in the quarter, excluding charges. That's an improvement of $1.1 billion from the year-earlier period on lower pension and other costs.
But CFO Fritz Henderson isn't ready to declare victory in North America because, he said, GM's results do not indicate sustained financial strength. The bulk of the second-quarter results came mostly from cost reductions, Henderson said.
"What we have to do is get the job done better on the revenue side during the second half of the year going into 2007," Henderson said Wednesday during a conference call with analysts and the news media.
Overall, GM posted a net loss of $3.18 billion for the second quarter, compared with a loss of $987 million in the second quarter last year. But this year's results include $4.3 billion in charges for shutting down factories and a worker buyout program taken by more than 34,000 unionized employees.
Total revenue rose to a record $54.4 billion in the quarter, from $48.5 billion a year ago.
"Our turnaround has not just gained traction, it's accelerating into high gear," said GM CEO Rick Wagoner.
Wagoner has been under pressure to show improvement as GM studies a possible three-way alliance with Nissan Motor Co. and Renault SA. He said the results vindicated the company's turnaround strategy.
"While significant work still remains, our ability to identify and initiate $9 billion in cost cuts over the past year is unprecedented in this industry," Wagoner said.
GM's loss in North American operations -- the focus of its restructuring -- narrowed to $85 million in the quarter, excluding charges. That's an improvement of $1.1 billion from the year-earlier period on lower pension and other costs.
But CFO Fritz Henderson isn't ready to declare victory in North America because, he said, GM's results do not indicate sustained financial strength. The bulk of the second-quarter results came mostly from cost reductions, Henderson said.
"What we have to do is get the job done better on the revenue side during the second half of the year going into 2007," Henderson said Wednesday during a conference call with analysts and the news media.
Overall, GM posted a net loss of $3.18 billion for the second quarter, compared with a loss of $987 million in the second quarter last year. But this year's results include $4.3 billion in charges for shutting down factories and a worker buyout program taken by more than 34,000 unionized employees.
Total revenue rose to a record $54.4 billion in the quarter, from $48.5 billion a year ago.
