P.M. BRIEFING : Profits Down at Top Auto Makers; GM Off 3.4%, Ford Drops 15.7%
The nation’s two largest auto makers reported lower second-quarter earnings today, with Ford Motor Co. profits down 15.7% and General Motors Corp. off 3.4%.
Ford, the nation’s second-largest auto maker, said it made $1.4 billion, or $3 a share, during the quarter this year, compared to $1.66 billion, or $3.43 a share, in the same period of 1988.
GM said it earned $1.45 billion, or $2.23 a share, during the April-June period this year, compared to $1.51 billion, or $2.26 a share, during last year’s second quarter.
GM and Ford said incentives offered during the quarter put pressure on profits, but overseas operations continued to show good profitability.
GM revenue, including its three large subsidiaries, rose 1.3% during the quarter to $33.6 billion from $33.18 billion last year. Ford’s quarterly revenue was $25.9 billion, up 3.7% from $24.96 in the same 1988 period.
Chrysler Corp., the nation’s third-largest auto maker, is to report earnings Monday.