GM Income Triples on the Back of Strong US Sales

General Motors today announced its first quarter net income attributable to common stockholders of $3.2 billion, or $1.77 per fully-diluted share, marking the company’s fifth consecutive profitable quarter. At the same time, company revenues increased by another $4.7 billion to quarter net income attributable to common stockholders of $3.2 billion, or $1.77 per fully-diluted share, marking this the company’s fifth consecutive profitable quarter.

“We are on plan. GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth,” aid Dan Akerson, chairman and CEO.

Meanwhile, GM North America reported its earnings before tax of $2.9 billion, more than double compared with $1.2 billion in the first quarter of 2010. GM’s U.S. sales climbed 25 percent to 592,545 light vehicles in the first quarter, outpacing the industry’s 20 percent gain, according to Autodata Corp., a researcher based in Woodcliff Lake, New Jersey.

Rising U.S. sales of Chevrolet Equinox sport-utility vehicles and Silverado pickups helped GM’s revenue climb 15 percent to $36.2 billion. Ford and Chrysler also reported profits for the quarter, so it looks like demand is back again.

Meanwhile, earnings in GM’s international operations, which include China, fell to $480 million in the first quarter from $908 million a year earlier. Sales for the unit rose 8.2 percent to about 855,000 vehicles in the quarter, GM said. However, the pretax loss in GM’s European operations narrowed to $390 million from $477 million. GM has said it plans to break even in Europe by the end of 2011.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Mihnea Radu
Mihnea Radu profile photo

Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories