GM profit falls 40%, better than analysts expected

General Motors' second-quarter net profit fell more than 40 per cent largely due to a loss from the sale of its European unit.

The company posted net income of $1.66 billion, compared with a record $2.87 billion a year ago.

If the European numbers are stripped away, income from continuing operations was $2.4 billion, or $1.89 per share, down 12 per cent from last year.

Despite the slowdown, Wall Street analysts were expecting even worse, so invesors reacted positively to the numbers.

Analysts polled by FactSet expected $1.68 per share.

Revenue was $37 billion, falling short of analyst estimates of $40.3 billion.

The net earnings include a $770 million loss from the sale of GM's European business to French carmaker PSA Group. It also includes $655 million in one-time items from restructuring in India and the sale of GM's South Africa business.