GM profits, revenue beat forecasts

General Motors on Thursday reported better-than-expected profit and revenue for the second quarter on strong US demand and shrinking losses in Europe. Net income came in at $1.2 billion on revenue of $39.1 billion, compared with income of $1.5 billion and revenue of $37.6 billion during the same period a year earlier. Adjusted earnings of 84 cents per share were well above the 75 cents expected by analysts. The 19 percent profit decline was due in part to one-time items such as the purchase of GM Korea shares, which reduced earnings per share by nine cents, the biggest US automaker said in a statement. Net revenue rose 4 percent from a year ago, to $39.1 billion. The average analyst estimate was for $38.4 billion. "We continue to perform well in the world's two most important markets, the US and China," Dan Akerson, GM chairman and chief executive, said in the statement. "We also made further progress in our European business and saw the steady performance of our global brands Chevrolet and Cadillac." GM shares were up 2.7 percent in pre-market trading.