The low price of gas helped to boost the sales of the big General Motors Company (NYSE:GM) SUVs and this turned into pure profit on the second quarter report. Analysis’s estimated the company will have a boost of $1.08 increase in share prices, but General Motors Company (NYSE:GM) exceeded expectations and earned $1.29 a share.
Net income more than tripled in 12 months, going from 278 million to 1.12 billion. Revenue did take a 1.4 billion dollar drop, but the company said that it was due, mainly, to poor exchange rates.
The story surrounding this company is a good, yet simple one. General Motors Company (NYSE:GM) was able to produce a profit via strong sales in two of their biggest markets: China and the United States.
Recently, analysts have been concerned about the company’s efforts in both of these markets. In the United States, General Motors Company (NYSE:GM) lost some shares by the low volume of sales on certain models. Abroad, the poor economic status was the cause of slow sales. Due to these concerns, the stock for this company lost some footing, but the concerns were unwarranted as strong luxury vehicles as well as SUVs were able to give total sales a significant boost.
Reported operating income for North America was 2.8 billion dollars, which is about double from the same period last year. Some of this was due to the fact that recall costs were lower, but an increase in sales was certainly another important change. The operating margin in the North American region was 10.5%.
New SUVs, the Buick Envision in particular, was a hot seller in China and this added to the increased margin of 10.2%.
In other regions around the world, the results of General Motors Company (NYSE:GM) were mixed. In Europe, for instance, an area which has always been a troubled spot for the company, performed very well. The loss was only 45 million compared to over 300 million dollars in loss from a year ago.
International operations for General Motors Company (NYSE:GM) include Africa, Australia and many parts of Asia. As previously mentioned, China did well, but the entire international operation posted flat sales. Earnings were 349 million compared to last year’s earnings of 315 million dollars. The growth in China was negatively offset by the decrease in sales in Australia, Africa and Thailand.
Mary Barra, the chief executive officer of General Motors Company (NYSE:GM) said that the goal of the company was to improve margins and earnings and they are on target to achieve this goal.
General Motors Company (NYSE:GM) was trading at 32.66 a share when the stock market opened on Thursday, July 23, 2015 and by 12:13 p.m. Eastern Standard Time on the same day, stock prices for this company were trading at 31.71 each. The 52 week outlook for General Motors Company (NYSE:GM) ranges between 28.82 and 38.99. They have a current marketing capital valuation of 51.51 billion dollars and they are 72% institutionally owned.