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Huge Q2 Losses
General Motors shares are trading down 1.67% pre-market on Thursday following a dire Q2 earnings call yesterday.
The US automobile giant reported losses of -$0.50 per share over the June quarter. While this was better than the -$1.77 per share losses expected, it still markers a heavy loss over the quarter.
Revenues came in at $16.8 billion versus $17.3 billion expected.
GM reported overall losses of $806 million for the quarter, which it expects will be the worst quarter of the year for the auto industry. The key driver of losses was a 34% decline in US vehicle sales. This was a direct result of the COVID-19 pandemic as well as tight dealer inventories due to the production shutdown in the first and second quarters.
The results are particularly disappointing in the context of the same quarter last year where GM reported earnings growth of $2.42 billion. In terms of revenues, the $16.7 billion reported marks a 53% decline from the $36.1 billion reported over the same qua...
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