GM earnings fall, but U.S. sales rise
DETROIT— General Motors’ firstquarter net income fell 60 per cent from a year ago, and its shares fell even though the numbers beat Wall Street estimates.
The Detroit automaker says it made just over $1 billion from January through March, or 77 cents per share. A year ago the company made $2.6 billion (U.S.), or $1.70 per share.
GM says earnings and revenue fell because shipments to dealers dropped as factories were closed to retool for new full-size pickup trucks. But sales from dealers to buyers in the U.S., GM’s most profitable market, rose 3.8 per cent driven by SUVs.
Investors were not impressed, however. Shares of GM tumbled 2.4 per cent to $37.18 in Thursday midday training.
GM had warned that earnings would be slower in the first and fourth quarters of the year, but the company said it is still on track to reach annual pre-tax earnings of around $6.50 per share.
Excluding one-time costs such as restructuring in South Korea, the company made $1.43 per share. Analysts polled by FactSet expected $1.24. Revenue fell 3 per cent to $36.1 billion. Analysts predicted $34.5 billion.
In North America the company made $2.2 billion before taxes for an 8-per-cent profit margin. The company’s joint venture in China made a record $600 million.
GM said all of its business units were profitable for the quarter.
In interviews and on a conference call with analysts, GM executives also gave updates on autonomous car development and said they see Ford’s exit from most passenger car segments in North America as an opportunity.