DETROIT – General Motors’s second-quarter sales rose 3.9 percent, signaling the largest U.S. automaker is poised for growth with one of the biggest waves of new models in its history.
While net income dropped on falling profit from the unit that includes India and southeast Asia, earnings excluding some items beat analysts’ estimates.
Revenue rose to $39.1 billion from $37.6 billion.
The stock was little changed at $37.08 after touching the highest intraday price since January 2011.
Demand for new pickups in the United States as well as Cadillacs and Buicks in China made up for declines in southeast Asia and Australia, where the weaker yen reduced GM’s profit by $100 million.
The Detroit automaker, which has a truck assembly plant in Allen County, is bringing 18 new or refreshed vehicles into showrooms this year, transforming its lineup into one of the market’s newest from one of the oldest.
I’ve been telling clients for a long time that GM’s stock is cheap today partly because they’re not operating at their full potential, said David Whiston, an analyst with Morningstar Inc. in Chicago.
The sales growth for GM, which follows Wednesday’s positive report from Ford, is further evidence of the industry’s resurgence even after Detroit this month filed the largest municipal bankruptcy in U.S. history.
Auburn Hills, Mich.-based Chrysler releases earnings next week.
There will always been currency shifts, recessions or unrest somewhere in the world that we have to manage through, Chief Executive Officer Dan Akerson told analysts Thursday.
But at GM the short-term challenges are no longer the tail wagging the dog.