Automotive giant General Motors (GM) has issued better-than-expected second quarter earnings and raised its full-year guidance.
Additionally, the Detroit automaker said it is increasing its cost-cutting measures and now plans to eliminate $3 billion U.S. in expenditures, up from $2 billion U.S. of cuts that were previously announced.
Cost cutting will take place in the sales and marketing business units, as well as in employee salaries, said the company.
General Motors reported earnings per share (EPS) of $1.91 U.S., which was better than the $1.85 U.S. consensus estimate of analysts who cover the company.
Revenue for the second quarter ended June 30 totaled $44.75 billion U.S. versus $42.64 billion U.S. that was expected on Wall Street.
The latest earnings include a $792 million U.S. charge related to a recall of General Motors’ Chevrolet Bolt electric vehicle models in recent years.
General Motors’ stock rose 2% in premarket trading immediately after the Q2 earnings were announced. Over the last 12 months, the company’s share price has gained 14% to trade at $39.30 U.S. per share.