GM first-quarter profit nearly doubled

DETROIT - motor quarterly profit nearly doubled general expectations in the second quarter, beating, as the top U.S. automaker worldwide took a larger share of the revenues and raised prices on its vehicles.

Coming out of bankruptcy, said GM Chief Dan Akerson and enough cost to recession-proof had removed the business other executives of the company so that it could thrive in a weak car market. The industry's sales slump in the second quarter and the risk of a double-dip recession could provide the first major test for this claim.

"There is an increased level of uncertainty," GM chief financial officer Dan Ammann told reporters. "But what we are trying to do, and what we have done successfully, is to configure the business with a low break even point and a strong balance sheet, so that we, what scenario can handle comes."

Early in the week fell to its lowest level since first public shares of the company in November last year to provide them, because investors like GM fare is concerned, if consumers tightening their purse strings in the sputtering economy.

The U.S. based automaker is strong in smaller, more fuel-efficient cars as the popular Chevrolet Cruze push, but a good portion of the profit is still strongly based on sales of more profitable trucks in the US market.

Net profit in the second quarter rose to $2.52 billion, or $1.54 per share of $1.33 billion, or 85 cents per share a year earlier.

Earnings per share, blowing past, respondents from Thomson Reuters I/B/E/S $1, 20 analysts on average had.

Sales rose 19 percent to 39.4 billion $, about the $36.74 billion, a quarter, analysts had expected, in the United States car sales soft a patch taken.

The results represent the second full quarter since GM IPO and a restructuring meant to keep industry to punish boom-bust cycles profitable the largest U.S. automaker by the.

GM was created before the bankruptcy in 2009 after a 52 billion dollar taxpayer orchestrated financed bailout by the Obama administration. The US Treasury has 32 percent of the GM common stock.

The company increased the second quarter a profit before interest and taxes of $1 billion by pushing through higher prices on its vehicles worldwide.

GM said its share in the global vehicle sales rose by 12.2 percent in the quarter of 11.6 percent a year earlier.

GM reported gains in all operating regions in Europe, where it has fought to restructure its Opel unit. It was the first time that all four regions have been profitable since the initial public offering.

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However came those profits as its Japanese rivals, led by Toyota Motor Corp., fought with fewer vehicles for sale in March due to the earthquake in Japan.

Analysts worry that if the U.S. recovery hits a pothole in the second half, GM could be forced, incentives to lure buyers for its vehicles increase. GM first quarter have been marred by heavy incentives, but the automaker elected back these offers.

The automaker is also a new challenge in the second half as Toyota and other Japanese automaker back into full production levels and look to create lost ground in sales.

For the second half of the year GM expects its adjusted earnings before interest and taxes "modest" less than the first half, but the year is on to improve in 2010.

GM ended up with total liquidity of almost $40 billion of $36.5 billion in the quarter end of June. However have to wait for investors as Ammann who would be the focus of the company said its conservation probably share buybacks or dividends "balance sheet fortress" to reinvest in the business and withstand all economic shocks.

Copyright 2011 Thomson Reuters.