Strong North American sales propels GM to $1.2-billion profit

General Motors squeezed more profits out of its flourishing North American business and trimmed its losses in Europe during the second quarter.

The automaker reported net income of $1.2 billion for the second quarter, including a $2-billion operating profit in North America. The net income was down 19% from the same quarter a year ago, but the financial performance still reflected momentum in several key areas.

In Europe, where GM hasn’t turned an annual profit since last century, the automaker reduced its operating loss from $394 million a year ago to $110 million this quarter. Citi analyst Itay Michaeli called the performance “very encouraging.”