GM Beats Expectations, Posts $2 Billion Profit In First Quarter

DETROIT (WWJ) - GM has posted a very strong $2 billion profit in the first quarter, beating analysts expectations.

Those analysts were expecting an earnings per share of $1. It turned out to be $1.26 per share.

"We're growing where it counts, gaining retail share in the U.S., outpacing the industry in Europe and capitalizing on robust growth in SUV and Luxury segments in China," said GM CEO Mary Barra.

The company again making the bulk of its profits in North America, $2.3 billion before taxes. GM also came close to breaking even in Europe, and kept its losses to $67 million in Latin America, even though sales in that part of the world fell off a cliff.

"The strong quarter also reflects the excellent progress we're making to improve results in our more challenged global markets," said Barra. 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.

Even as GM's global sales dipped 2.5 percent over the first quarter of 2015, the company increased its revenue from $35.7 billion last year to $37.3 billion this year.

GM's global sales were impacted by deep decreases in Latin America, and lower growth in North America, due to a strategy of moving away from less profitable fleet sales and toward more profitable retail sales.

The company expects its performance this year to continue to top last year's strong earnings.

"The quarter was a great start to a year in which we anticipate strong growth in earnings and free cash flow," said GM Chief Financial officer Chuck Stevens.