GM profits hurt by Europe slowdown

DETROIT General Motors' net income fell 14 percent in the first quarter, weighed down by losses in Europe and weaker earnings in North America.

GM earned $865 million, or 58 cents per share, compared with $1 billion, or 60 cents per share, in the January-March period a year ago. Excluding one-time items, GM earned 67 cents per share in the latest quarter. Analysts were expecting 54 cents, according to FactSet.

Revenue fell 2.3 percent, to $36.9 billion from $37.8 billion. But the top-line number still surpassed Wall Street expectations of $36.6 billion. GM shares rose 4.3 percent to $31.48 in premarket trading.

Worldwide sales rose 3.6 percent to more than 2.3 million cars and trucks. GM saw record first-quarter sales of 816,373 vehicles in China, up 10 percent from the same quarter a year ago. Among the hot sellers was the Cadillac XTS full-size sedan, which went on sale in China in February. Chinese buyers snapped up more than 2,000 XTS sedans in March alone, despite a steep starting price of $56,000.

The Cadillac XTS and smaller ATS also gave GM a boost in the U.S., where first-quarter sales rose 9 percent to 664,963. GM outpaced the industry's gain of 6 percent. U.S. Cadillac sales jumped 38 percent while Buick sales rose 27.5 percent, thanks to the new Verano small car and Encore small utility.

Sales of the Chevrolet Silverado full-size truck rose 22 percent in the U.S., boosted by an increase in home building and other construction.

Still, GM's profit in North America dropped 12.5 percent to $1.4 billion.

In Europe, where GM is in the midst of a multi-year restructuring to deal with falling sales, losses narrowed to $175 million from $294 million a year ago.

One-time items in the 2013 first quarter included a charge for currency devaluation in Venezuela.