GM Reports Record $2B in First-Quarter Income
DETROIT – General Motors Co. today reported a record $2 billion in first-quarter net income, or $1.24 per diluted share, more than double its results from the same period last year. Last year’s first-quarter income was $900 million, or 56 cents per diluted share.
The results include $300 million in restructuring costs, mostly related to new UAW contract agreements. Revenue for the quarter was $37.3 billion, up from $35.7 billion the year-ago quarter.
CEO Mary Barra attributed the results to a growing market share in the United States and Europe, along with climbing SUV and luxury sales in China.
“This strong quarter also reflects the excellent progress we’re making to improve results in our more challenged global markets,” she said in a release. “Importantly, the continued success of our core business is enabling us to invest in advanced technology and innovations that will help shape the future of personal mobility.”
General Motors North America reported income of $2.3 billion, up from $2.2 billion last year. In China, GM reported pre-tax earnings of $518 million, while income in Europe fell to $6 million, an improvement from last year’s first-quarter loss of $239 million.
Global deliveries for the automaker fell to 2.36 million, a 2.5% decline from the first three months of 2015 with weak sales in its many international markets, mostly in South America, where deliveries were down 26% to 133,000. Asian deliveries were down 0.5% to 1,131,000.
The Detroit News reported that GM raised its profit estimate for 2016 earlier in January, projecting between $5.25 and $5.75 adjusted earnings per share.
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