GM Profits Surge Past $1 Billion

IPO is looming

General Motors said on August 12 that its profits hit $1.3 billion in the second quarter, as the auto firm prepared to break free of government ownership by relisting on the stock exchange.

"I am pleased with our progress on achieving our business objectives," said chief financial officer Chris Liddell, announcing the second consecutive quarter of growth.

The company erased a loss of $13 billion in the same period last year, as sales and revenues increased.

The firm saw stronger sales in North America in the quarter, even as sales in Europe floundered and market share around the world sank.

GM captured 15.4% of the U.S. market for cars versus 17.5% in the second quarter of last year, but elsewhere faired poorly.

GM's executives have said that a public offering will come soon, a process that will help the government unwind its majority stake in the firm.

The Treasury Department still owns 61% of GM, which received $50 billion of government financing for its bankruptcy restructuring that led to mass layoffs, plant closures and billions of dollars in debt wiped out.

GM's drive for an IPO will be boosted by news that the firms revenues swelled to $33 billion in the second quarter, a third more than the same period last year.

Copyright Agence France-Presse, 2010

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