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Shares in the world's third-largest automaker rose more than 6
percent to $33.45 in premarket trading.
GM said it expects adjusted earnings before interest and taxes
of $5.50 to $6.00 per share for full-year 2016, up from a
previous forecast of $5.25 to $5.75 per share.
GM said second-quarter net income rose to $2.87 billion, or
$1.81 a share, from $1.1 billion, or 67 cents a share, a year
ago. Adjusted earnings were $1.86 per share while Wall Street
expected $1.52 per share.
More than 90 percent of its pretax profits came from North
America, where profit margins rose to 12.1 percent from 10.5
percent a year before. The improvement was driven by demand for
pickup trucks and large sport utility vehicles.
GM also reported its first quarterly profit in Europe in five
years, but warned that currency and market disruptions caused by
Britain's decision to quit the European Union could slash $400
million from second-half results in Europe.
Chief Financial Officer Chuck Stevens told reporters that the
cost of the acquisition of Cruise Automation to develop
self-driving vehicles was about $581 million, which was split
evenly between cash and stock.
(Editing by Bernadette Baum and Jeffrey Benkoe)
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