GM reports 42pc drop in 2Q profits

New York: General Motors reported a big drop in second-quarter earnings Tuesday on one-time restructuring costs in international markets, as car sales dipped in the cooling North American market.

Net income for the biggest US auto maker was $1.7 billion, down 42 percent from the year-ago period.

Revenues fell 1.1 percent to $37 billion. GM said overall performance remained solid, with growth in the key US crossover vehicle segment despite a decline in overall US car sales amid weak sedan demand.

GM notched higher sales in China compared with the year-ago period, but its overall international sales declined from the 2016 period.

Earnings were dented by one-time asset impairments, sales incentives and employee separations in India and South America as GM pares back operations in less-profitable markets. The results were also hit by accounting for GM´s pending sale of its Opel/Vauxhall brands in Europe to PSA Peugeot Citroen.  "Disciplined and relentless focus on improving our business performance led to a strong quarter and very solid first half of the year," said chief executive Mary Barra.