DETROIT ? General Motors Corp.’s profit soared 49 percent in the second quarter, boosted largely by record earnings at its financial services arm and improved global automotive results despite wider losses in its European operations.

Even as its profit rose, GM’s global and North American market share declined.

The world’s largest automaker said Wednesday it earned $1.34 billion, or $2.36 a share, in the April-June quarter, up from $901 million, or $1.58 a share, a year ago. The Wall Street consensus for earnings in the most recent quarter was $2.24 a share, according to a survey by Thomson First Call.

Revenue rose 7.1 percent to $49.1 billion from $45.9 billion a year ago.

GM’s report came a day after smaller rival Ford Motor Co. said its earnings in the second quarter nearly tripled to $1.2 billion, also fueled by its finance business.

“Overall, our financial results for the quarter were reasonably good,” said Rick Wagoner, GM’s chairman and chief executive. “General Motors Acceptance Corp. once again had an outstanding quarter … and our automotive operations reported improved earnings as well.”

The GMAC business earned a record $860 million in the second quarter, up from $834 million in the year-ago period.

Looking ahead, GM said it expected to earn between 75 cents and $1 a share in the third quarter. The current Wall Street estimate is 97 cents. The company maintained its 2004 earnings estimate of approximately $7 a share. Wall Street’s current estimate is $7.12.

In a research note, Merrill Lynch analyst John Casesa said GM’s stance on the second half of 2004 was “appropriately cautious,” given that pricing competition was expected to remain intense.

But he said the automaker’s “fundamentals are improving steadily in the face of an increasingly competitive environment.”

Kathy Prasch, of Lincoln, Neb., admires a Corvette in the showroom of Husker Auto in Lincoln, Neb. General Motors Corp. reported Wednesday that its second-quarter profit rose 49 percent. Prasch was shopping July 1 for a new vehicle.

On the New York Stock Exchange, GM shares fell 25 cents Wednesday to close at $43.35.

Worldwide, GM’s automotive earnings totaled $529 million in the most recent period, up from $140 million a year ago.

But the automaker’s loss widened in Europe, a trouble spot for the company in recent quarters. In the second quarter, GM reported a loss of $45 million in Europe compared with a loss of $3 million a year ago. The most recent results reflect intense price competition, foreign exchange losses and restructuring costs for GM’s share of a joint venture with Fiat.

GM in June announced a major overhaul of its European business, saying it would bring Adam Opel AG, Vauxhall Motors Ltd. and Saab Automobile AB under closer central control by its European headquarters.

The company also said it hoped to increase efficiency by moving functions such as finance, engineering, manufacturing, sales and marketing into Europe-wide departments coordinated at GM Europe headquarters in Zurich.

GM chief financial officer John Devine said GM’s new European management team was off to a good start in terms of cutting costs and noted the company’s market share was up versus a year ago.