General Motors posts highest quarterly net profit in 6 years

General Motors Company today reported a net income of $1.3 billion for the second quarter ended 30 June 2010, resulting in earnings per share of $2.55 attributable to common stockholders on a diluted basis. 

The highest after-tax profit reported after 2004 has been marked by revenue of $33.2 billion and earnings before interest and tax (EBIT) of $2.0 billion, GM said in a release.

GM North America reported second quarter EBIT of $1.6 billion, up from $1.2 billion in the first quarter. GM Europe had a loss before interest and taxes of $0.2 billion, an improvement of $0.3 billion from the first quarter. GM international operations posted EBIT of $0.7 billion, down from $1.2 billion in the first quarter.

Cash flow from operating activities was $3.9 billion and after adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion. GM ended the second quarter with $32.5 billion in cash and marketable securities, including funds in the Canadian Health Care Trust escrow.

But the man who steered the turnaround - from its nearly $13 billion loss a year ago - Edward E Whitacre Jr would step down as chief executive on 1 September.

Daniel Akerson, a GM board member would replace Whitacre as CEO. Whitacre, a former AT&T Inc chairman and CEO, was brought in by the Obama administration last summer to be GM board.