GM Zooms Past Forecasts

GM's revenue declined 13% to $46.8 billion, but it beat expectations as well. Analysts were looking for revenue of $44.4 billion.

Revenue from its automotive operations rose to $45.9 billion for the quarter from last year's $44.8 billion.

"We again saw improved results in sales, income and cash flow this quarter, driven by the continued successful implementation of our business strategies," said GM in a press release.

Last week, GM rival Ford (F Quote) also surprised with much stronger-than-expected second-quarter results. The reports come as GM, Ford and Chrysler prepare for this summer's labor talks, at which they hope to cut their health care bills.

GM's automotive income from continuing operations totaled $764 million on an adjusted basis, compared to an adjusted profit of $367 million a year ago. GM's global sales volume surpassed 2.4 million units in the second quarter, up marginally from the same quarter a year ago.

Global market share was slipped slightly to 13.3% from 13.7% in the year-ago period, driven by a softer U.S. market, a reduction in fleet sales, and fewer incentives. GM market share outside of North America increased to 9.4% in the second quarter 2007, compared with 9.2% in the second quarter of 2006.

GM's North American automotive losses narrowed dramatically to $39 million from last year's $3.95 billion. Excluding certain charges, the business had adjusted income from continuing operations of $78 million, compared to an adjusted loss of $94 million a year earlier.