General Motors surprised investors this morning by posting a much higher second quarter profit than was predicted yesterday. GM’s net profit of $891 million compares very favorably to its $3.4 billion loss in the same quarter last year.
Analysts say that GM’s cost cutting and strong overseas sales resulted in profit-making. General Motors has seen considerable growth in emerging markets, including China and Eastern Europe.
GM’s North American markets did lose money, but the losses were down considerably from a year before. GM lost $39 million in the second quarter of 2007, down from $3.95 billion during the same time period the year before.
