Global Biz

GM posts largest quarterly profit since 2004

(Agencies)
Updated: 2010-08-12 20:53

DETROIT -?General Motors posted its biggest quarterly profit in six years on Thursday, a day ahead of an expected IPO filing that would open the gates for the US government to slash its stake in the automaker.

The top US automaker reported second-quarter net earnings of $1.3 billion, compared with $865 million in the first quarter. The second-quarter profit was the largest since 2004.

Related readings:  Chevy sales help rev up GM numbers  Ford, GM's July sales up  GM to file mid-August IPO  GM China recalls several models

Revenue rose to $33.2 billion from $31.5 billion in the first quarter, boosted by stronger results in North America.

Sources told Reuters on Wednesday that the largest US automaker had secured a $5 billion credit facility, marking its return to the capital markets a year after it emerged from a government-funded landmark bankruptcy.

The credit facility was a last hurdle toward filing for an initial public offering of stock that allows the US Treasury to reduce its nearly 61 percent stake in GM -- and the automaker to begin to shed its "Government Motors" label.

The filing for GM's IPO is expected on Friday.