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General Motors Management Discusses Q2 2012 Results - Earnings Call Transcript

Before we go deeper into the results, I'd like to address the subject of leadership. In recent weeks, you've seen that we had to -- we would not hesitate to act on changes required to make the business stronger. That may mean promoting leaders who have motivated teams to achieve great things from our customers, or it could mean recruiting talent from outside GM to accelerate things. From time to time, it will mean parting company with people who are not delivering expected results or, alternatively, who do not meet the highest standards for accountability and integrity. That's the way it has to be for all of us in order for the company to reach its full potential.

All right. Let's turn back to the second quarter. At the top of Slide 2, you can see that we increased our global deliveries year-over-year by roughly 70,000 units, thanks to Chevrolet, which is on a roll. The brand has now delivered 7 consecutive quarters of record sales. While our net revenue was down $1.8 billion to $37.6 billion, virtually, the entire decline reflects the strengthening of the dollar against the euro and other major currencies.

Looking at net income attributable to common stockholders, the bottom line was $1.5 billion, down from $2.5 billion a year ago due largely to losses in Europe.

Turning to our non-GAAP results, our EBIT-adjusted was $2.1 billion in the second quarter, down from $3 billion a year ago, largely because of Europe. North America was down slightly. Europe's EBIT-adjusted loss was $0.4 billion. GMIO's results were essentially equal to a year ago, and South America was slightly down.

GM Financial had earnings before taxes of $0.2 billion for the quarter, which was a strong $0.1 billion increase from last year. Finally, our automotive free cash flow was $1.7 billion.

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