GM posts lower Q2 profit, cites stronger dollar

General Motors, the largest US automaker, reported a 40 percent drop in second-quarter profit as sales took a hit from a stronger dollar and Europe's financial woes weighed. GM reported net income of $1.5 billion, or 90 cents per share, in the April-June period, compared with the year-ago profit of $2.5 billion. Net revenue also declined substantially, to $37.6 billion from $39.4 billion a year earlier. "The decrease was due almost entirely to the strengthening of the US dollar versus other major currencies," GM, based in Detroit, Michigan, said in a statement. Earnings per share beat market expectations of 74 cents, but revenue missed the $38.58 billion estimate. GM chairman and chief executive Dan Akerson noted that despite a challenging environment, GM had now posted 10 consecutive quarters of profitability, following its government bailout amid the 2008-2009 financial crisis. "But we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America," Akerson said in the statement. GM increased global vehicle deliveries by 100,000, to 2.4 million in the second quarter. North America remained the group's most profitable region, with income of $2.0 billion, down nine percent from the 2011 second quarter. GM Europe was the heaviest drag on financial results, under pressure from the eurozone sovereign debt crisis. The division had a $400 million loss compared with $100 million profit in 2011. The South American business was at break-even, after a $100 million profit a year ago. GM Financial was the only unit to show growth, doubling profit to $200 million. The company reported no special items for the quarter. Shares in GM were up 1.7 percent at $20.00 in pre-market trading in New York.