G.M. Says Weakness in Asia Leads to Drop in Profit

G.M. said it earned $1.2 billion in the quarter, compared with $1.49 billion in the same period a year ago, although it narrowed its losses considerably in Europe, where weak economic conditions have driven new-car sales to their lowest levels since the 1990s.

The company said that its global revenue rose 4 percent, to $39.1 billion, and that worldwide sales, including joint ventures, increased 4 percent to 2.49 million vehicles.

While G.M.’s North American business improved, the company has been dogged by persistent problems in its overseas operations.

Europe has been its biggest trouble spot, but weaker results in Asia and South America have additionally kept G.M. from posting broad improvements.

Still, G.M.’s chief executive, Daniel F. Akerson, said on Thursday that G.M. had steadily rebuilt its operations since its bankruptcy and government bailout in 2009.

“G.M. is an inherently stronger company than it was even a year ago,” Mr. Akerson said in a conference call with analysts.

Most analysts said the company beat its expectations for the quarter, but had yet to achieve consistent performance around the world.

“The global results were mixed,” Matt Stover, an analyst with Guggenheim Securities, said in a research note. “Europe, North America and G.M. Financial posted better-than-expected results while international operations came in lower.”

In North America, G.M. benefited from new products, particularly pickups, and steadily improving demand by consumers for new vehicles to replace aging models.

The company said it earned $1.97 billion in pretax income in the region in the quarter, a 4 percent gain from $1.89 billion a year ago.

Its pretax loss in Europe was $110 million, which was considerably better than its loss of $394 million in the same period a year ago.

Mr. Akerson said there was more progress to come in Europe, where G.M., with its struggling Opel brand, has lost money for more than a decade. The company has revamped its European management team with outside hiring and has stepped up the introductions of new products in the region.

“We’re going to continue to push in Europe,” Mr. Akerson said. “We’re going to play offense and defense, and focus on continuing to take costs out of the business.”

The major surprise was G.M.’s declining performance in Asia. The company said it earned a pretax profit of $228 million in the region, a 63 percent decrease from $627 million a year ago.

While G.M. continued to grow in China, it faced increased competition and pricing pressures from Japanese competitors in other Asian markets as well as Australia.

The company’s chief financial officer, Daniel Ammann, said G.M. also experienced larger-than-usual warranty costs and vehicle recalls in the region.

In South America, G.M. earned a pretax profit of $54 million, compared with $16 million a year ago.

Analysts contend that G.M. needs to accelerate its development of global vehicle platforms that yield a variety of different models.

The company is also trying to increase the presence of its two best-known American brands, Chevrolet and Cadillac, in other parts of the world.

G.M. increased vehicle sales in every region other than Europe, where sales fell about 7 percent in the quarter.

Its global market share slipped, to 11.5 percent, compared with 11.6 percent in the second quarter of 2012.

The company’s share of the North American market dropped to 17.3 percent from 17.4 percent last year, and its share in Europe dropped to 8.5 percent from 8.8 percent.

Mr. Akerson said the company continued to work on reducing costs. G.M. recently created a new business services unit, which is intended to consolidate back-office systems and streamline operations.

But he declined to reveal specific targets for cost cuts. And the company is adding employees rather than shedding them. G.M. said it had increased its global employment about 3 percent, to 219,000 workers, compared with year-ago levels.

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