General Motors Second Quarter Results Bolstered By Trucks
Earnings, Market Share Grow in North American on Strength of Truck Sales
If you need any more evidence that trucks are having a heyday, you don’t need to look much further than General Motors’ second quarter 2015 results. GM’s adjusted earnings for the second quarter doubled from $1.4 billion in 2014 to $2.8 billion in 2015. Earnings per share also increased significantly from $0.11 in 2014 to $0.67 in 2015.
Quarterly deliveries in the U.S. increased from 806,000 to 822,000 from 2014 to 2015, and market share in the critical truck and crossover categories increased 0.9 and 0.7 percent, respectively, helping to offset weakness in cars, where market share declined from 14.9 to 13.1. GM also decreased its fleet market share from 26 to 22.9 percent in trucks and from 22 to 18.1 percent in crossovers, meaning a higher share of more profitable retail sales. Strength in North American sales offset global challenges such as currency devaluation in some markets and loss of market share in Brazil, declining from 16.7 percent in the second quarter of 2014 to 14.3 percent in Q2 2015.
Things are looking good for the third and fourth quarters for 2015, with sales of the fullsize Chevrolet Silverado pickup increasing a robust 18.4 percent for June. Sierra sales increased 20.8 percent in June, outpacing mostly single-digit gains in the prior months. Truck sales were likely helped by a supply shortage for some components on the new 2015 Ford F-150, which has kept inventories tight at dealerships.
Source: General Motors