General Motors posted disappointing earnings today for the second quarter of 2012. The company reported net income of $1.5 billion on revenue of $37.6 billion, figures that are significantly lower than the second quarter of 2011. Then, GM reported net income of $2.5 billion on revenue of $39.4 billion. That means this quarter’s income was down 40 percent year-over-year, while revenue dropped 4.6 percent.
The grim pronouncement comes a day after GM revealed that its monthly sales were down six percent compared to July 2011, in part because of declining fleet and rental sales. But GM was mostly hurt by economic troubles in Europe, where car sales have stagnated.
“Our results in North America… were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” GM CEO Dan Akerson said in a statement.
Within North America, GM posted a second-quarter profit of $2.0 billion, down from $2.2 billion in the second quarter of 2011. But in Europe, GM suffered a loss of $400 million, compared to a loss of $100 million a year prior. GM’s South American operationsbroke even, but had posted $100 million in profit in the second-quarter of 2011. GM International Operations, which includes the Chinese and Indian markets, posted a profit of $600million, equal to its second-quarter profits last year.