http://www.morningstar.com/earnings/28909552-general-motors-co-gm-q2-2011.aspx

General Motors Co GM
Q2 2011 Earnings Call Transcript

Transcript Call Date 08/04/2011

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the General Motors Company Second Quarter 2011 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session for analysts. As a reminder, this conference is being recorded Thursday August 4, 2011.

I would now like to turn the conference over to the Executive Director of Communications and Investor Relations, Mr. Randy Arickx. Please go ahead, sir.

Randy Arickx - Executive Director of Communications and IR: Thanks, operator. Good morning and thank you for joining us as we review our second quarter 2011 results. As you know, our press release was issued earlier this morning and the conference call materials are available on the Investor Relations website. I would also like to highlight that GM is broadcasting this call via the Internet.

Before we begin, I would like to direct your attention to the legend regarding forward-looking statements on the first page of the chart set. As always, the content of our call will be governed by this language.

This morning, Dan Akerson, General Motors' Chairman and CEO will provide opening remarks, followed by a more detailed review by Dan Ammann, Senior Vice President and CFO. Dan Akerson will then conclude the remarks portion of our call with some closing comments. After the presentation portion of the call, we will open the lines for questions from the analyst community.

I would also like to mention that we also have Nick Cyprus, Vice President, Controller and Chief Accounting Officer, as well as Chuck Stevens, CFO of North America, with us today to assist in answering your questions.

With that, I’d like to turn the call over to Dan Akerson.

Daniel F. Akerson - Chairman and CEO: Thanks, Randy. In summary, we had a solid quarter. Each region posted a profit. Our cash flow was strong, and most importantly, our fuel-efficient vehicles continue to perform very well in the marketplace and we have more coming.

Today’s results are further evidence that we continue to make steady progress on our plan and on our goal of long-term, sustained performance for General Motors. But we have a lot more work to do.

Turning to Slide 2, our global deliveries and net revenue were both up year-over-year, reflecting the benefits of our global footprint.

Our revenue was up 19% to $39.4 billion and we were able to outpace the market, resulting in global share increasing to roughly 12.2%. We delivered $3 billion in EBIT-adjusted, an increase of $1 billion versus the prior year, reflecting the benefits of improved revenue offsetting higher commodity cost and future product cost.

GM North America improved its EBIT-adjusted to $2.2 billion, largely on the strength of stronger sales of fuel-efficient vehicles across the portfolio. I'm pleased to report that GME, GM Europe achieved another important milestone of positive EBIT-adjusted of about $100 million for the second quarter. Clearly, more work to do, but Europe continues to meet plan, especially our market share in Germany which is up 0.9 of 1% year-over-year.

Read our Earnings Call Transcript disclaimer.
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