GM’s Profits Rise to $945 Million in Q1
DETROIT – General Motors on Thursday reported net income of $945 million for the first quarter of 2015. That compares to net income of $108 million for the Detroit automaker in the comparable period one year ago, reported MLive. GM’s earnings before interest and taxes increased to $2.1 billion, compared with an EBIT of $500 ... Read More »
DETROIT – General Motors on Thursday reported net income of $945 million for the first quarter of 2015. That compares to net income of $108 million for the Detroit automaker in the comparable period one year ago, reported MLive.
GM’s earnings before interest and taxes increased to $2.1 billion, compared with an EBIT of $500 million in the first quarter of 2014.
The company had $1.3 billion in recall-related pre-tax costs and $0.3 billion in restructuring costs in the year-ago period, compared with just $0.1 billion in restructuring costs in first quarter of this year.
Revenues dipped to $35.7 billion in the first quarter of this year from $37.4 billion in the year-ago quarter.
“Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year,” GM CEO Mary Barra said in a release. “Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value.”
By region, the company handily improved its EBIT in North America to $2.2 billion in the first quarter, after incurring that $1.3 billion costs there in the year-ago quarter. GM narrowed its EBIT loss in Europe to $200 million, compared with $300 million in the comparable period. Its EBIT in South America was flat at about a $200 million loss.
“Key vehicles like our recently launched full and mid-size trucks, and our cost discipline helped us deliver a solid quarter,” Chuck Stevens, GM executive vice president and chief financial officer, said in a release. “We continue to take decisive actions to address issues head-on and to drive the company to generate strong results.”
Last month, GM announced a $5 billion stock buy-back program. The automaker said Thursday it had since repurchased 19.4 million shares.
Separately, on Tuesday GM announced a 2 percent rise in vehicle sales to 2.4 million units sold globally in the first quarter. Sales in North America were up 6 percent, in China they rose 9 percent and Opel/Vauxhall’s sales grew 3 percent in Europe.
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