DETROIT -- General Motors today posted a smaller second-quarter loss in Europe than expected by analysts. The automaker said it could not predict when its operations in the region will return to profit.
GM lost $361 million in Europe during the quarter, less than Ford's second-quarter European loss of $404 million. Analysts polled by StreetAccount had expected a loss of $426 million for GM.
GM has been able to maintain flat pricing in Europe because of the introduction of some new models, Chief Finance Officer Dan Ammann told reporters. He added that recent cost-cutting moves, such as idling some assembly lines, have helped the bottom line.
Ammann wouldn't predict when GM will turn a profit in Europe. Despite GM's restructuring moves, he said the "biggest fundamental driver" of its results will be the region's economy.
"We're taking a lot of very decisive actions around Europe and we have been for a number of quarters now," he said. "If we're talking about the general European economy and the industry overall, we continue to see a very challenging environment in the second half."
GM's global second-quarter net income attributable to common stockholders for the April-June period dropped 41 percent to $1.49 billion. Revenue dipped 4 percent to $37.61 billion, largely due to the stronger dollar.
The automaker's North American unit also reported stronger-than-expected results although the company attributed some of that to spending that was deferred to the third quarter.
North American pretax profit fell 13 percent from the year-earlier period to $1.97 billion. The automaker posted a slight loss of $19 million in South America, after turning a $57 million profit a year earlier.
"We clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America," CEO Dan Akerson said in a statement. He noted "solid" results in North America and GM's international division, which includes China.