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General Motors profit falls by just over 40%

July 24th, 2017  |  Canadian Business

While General Motors has seen a $1.66 billion profit in the second quarter, it is a 42.1% drop from the $2.87 billion they saw last year at this time.

A large factor contributing to the 42.1% decline in profits was a $770 million loss from the sale of the company's European division. In addition, the company’s decision to pull sales out of India and sell its operations in South Africa cost General Motors around $600 million in special charges.

However, even with an over 40% decline in profits, General Motors surpassed the expectations projected by Wall Street. With its European operations excluded, GM earned a profit of $2.4 billion, which works out to be $1.89 per share, beating the $1.75 per share projected by S&P Global Market Intelligence analysts.

General Motors has been impressing analysts and shareholders with their dedication to the development of their electric car, the Chevrolet Bolt, which is able to go 383 kilometers on a single charge, their investments into self-driving car technology, and their willingness to let go of their money-losing European division.

"Disciplined and relentless focus on improving our business performance led to a strong quarter and very solid first half of the year," GM CEO Mary Barra said in a statement. "We will continue transforming GM to capitalize on growth opportunities and deliver even more value for shareholders."