SerpApi.Org
By Kalea Hall
DETROIT, July 21 (Reuters) - General Motors lifted its earnings outlook for the year on Tuesday after posting a 30% increase in second-quarter core profit on the back of profitable SUV and truck sales.
The Detroit automaker said it easily surpassed analysts' profit estimates despite a choppy economic backdrop, as consumers grappled with higher gas prices, persistent inflation and slowing job growth during the quarter.
Strong sales in its home market of North America, which is also its biggest, were driven by solid pricing.
GM reported quarterly earnings before interest and taxes of $3.9 billion compared with roughly $3 billion a year earlier. On an adjusted basis, it earned a profit per share of $3.57, topping analysts' estimate of $3.20, according to LSEG data.
GM raised its 2026 profit outlook by $500 million to a range of $14 billion to $16 billion. In the first quarter, GM increased its outlook by $500 million, the amount it expects to recover from refunds tied to a U.S. Supreme Court ruling that struck down some of the Trump administration's tariffs.
Despite the stronger-than-expected quarter, the largest U.S. carmaker by sales said its results will continue to be weighed down by tariff pressures and rising supply costs.
GM held steady an earlier forecast of a $2.5 billion to $3.5 billion hit to its bottom line from tariffs. It said inflation in raw materials, computer chips and logistics should cut earnings by $1.5 billion to $2 billion this year.
Quarterly net income dropped 31% from a year earlier to $1.3 billion, mostly due to about $2.3 billion in costs related to restructuring its electric-vehicle factory footprint. Revenue of $48 billion was up 2%.
In North America, the profit margin improved to 8.6% from 6.1% a year earlier, despite a 4% decline in quarterly sales.
In China, which GM is restructuring, it reported equity income of $83 million, up from $71 million a year ago. Its international business, excluding China, posted core profit of $190 million, down 7%.
(Reporting by Kalea Hall; Editing by Alexander Smith)
