(Sharecast News) – US vehicle maker General Motors said it was raising annual guidance for a second time this year after a sharp rise in second quarter earnings.
On an unadjusted basis, the company reported net income attributable to stockholders of $2.57bn, up 52% year on year.
The Detroit-based automaker also unveiled bigger cost-savings measures and now plans to cut $3bn in expenditures compared with previous guidance of $2bn.
Revenue during the quarter jumped 25% compared to $44.75bn compared with estimates of $42.64bn.
Earnings included an unexpected $792m charge for new commercial agreements between GM and LG Electronics and LG Energy Solution.
The cost is a result of the automaker sharing costs with the companies for a recall of its Chevrolet Bolt EV models in recent years, which were previously expected to be paid by the LG companies.
For the full year, GM is raising its adjusted earnings expectations to a range of $12 – $14bn, up from a previous range of $11 – $13bn.
Reporting by Frank Prenesti for Sharecast.com