GM REPORTS $1.2 BILLION OPERATING PROFIT FOR 2ND QTR.!

Automotive News / July 26, 2006

DETROIT -- General Motors delighted investors and analysts Wednesday by posting $1.2 billion in operating profit for the second quarter -- a $1.4 billion improvement over the same quarter last year."Our turnaround has not just gained traction, it's accelerating into high gear," said GM CEO Rick Wagoner.Wagoner has been under pressure to show improvement as GM studies a possible three-way alliance with Nissan Motor Co. and Renault SA. He said the results vindicated the company's turnaround strategy."While significant work still remains, our ability to identify and initiate $9 billion in cost cuts over the past year is unprecedented in this industry," Wagoner said.GM's loss in North American operations -- the focus of its restructuring -- narrowed to $85 million in the quarter, excluding charges. That's an improvement of $1.1 billion from the year-earlier period on lower pension and other costs.