| 4:38 PM EST

GM Quarterly Profit Falls 11% to $1.2 Billion

General Motors Co. netted $1.2 billion in the first quarter of this year compared with $1.3 billion in the same period of 2012 as operating results eroded in every region except Europe.Quarterly revenue dipped 2% to $36.9 billion because of a 3% drop in wholesale shipments and unfavorable exchange rates.
#GeneralMotors

Share

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

General Motors Co. netted $1.2 billion in the first quarter of this year compared with $1.3 billion in the same period of 2012 as operating results eroded in every region except Europe.

Quarterly revenue dipped 2% to $36.9 billion because of a 3% drop in wholesale shipments and unfavorable exchange rates. But retail sales grew 4% to 2.36 million units on gains in every region except South America.

The company’s adjusted earnings before interest and tax (EBIT) in the January-April period slid 18% to $1.8 billion.

But investors, who had expected a bigger decline in profit, boosted GM shares 5% to a 52-week high of $31.58 by midday.

GM Financial’s adjusted EBIT edged down less than 1% to $180 million in the first quarter.

Automotive cash outflow was $1.3 billion. GM expects to be cash-flow positive for the full year. The company ended the quarter with $24.3 billion billion in cash.

GM also reported first-quarter results by region:

NORTH AMERICA: Adjusted EBIT dropped 14% to $1.4 billion, weighed down by heavy spending to launch new models. GM warns that its fixed costs in the region in the second and third quarters will be higher than a year earlier.

Revenue dipped 1% to $23 billion. Wholesale shipments declined 2% to 829,000 vehicles, but retail sales climbed 8% to 762,000 units.

EUROPE: GM narrowed its loss to $175 million from $294 million a year earlier. The company says the smaller deficit is a sign that its restructuring is beginning to gain traction.

Revenue in the region fell 8% to $4.8 billion. Retail deliveries slid 6% to 373,000 vehicles.

SOUTH AMERICA: South American operations swung to a $38 million quarterly loss from a $153 million profit. Revenue contracted 5% to $3.7 billion. Deliveries to customers dropped 6% to 234,000 vehicles.

GM says its South American declines were mainly caused by economic turmoil in Venezuela, where the currency was devalued and the company’s sales and production came to a near-standstill.

INTERNATIONAL: In Asia Pacific, Africa and the Middle East, adjusted EBIT slid 5% to $495 million. Revenue shrank 4% to $4.8 billion. Retail sales rose 7% to 992,000 vehicles, buoyed by record sales of 816,400 units in China. 

Related Topics

RELATED CONTENT

  • Can You Glue A Car Together?

    I'm not talking about a plastic Revell model of a '57 Chevy, but a real vehicle, one that rolls off an assembly line in 1999 with another 99,999 just like it right behind. Is it possible, or is this just a fantasy of the marketing department at Elmer's?

  • 8 Rules for Getting Things Done Through People

    Effective management is a timeless skill—as demonstrated by this treasure of an article from the AutoBeat Group archive. Although the tools of the trade have changed and proliferated, the basics remain the same. Here are 8 old school (and just darn practical) rules for being an excellent manager. 

  • How General Motors Develops World-Class Propulsion Systems

    Dan Nicholson is vice president of General Motors Global Propulsion Systems, the organization that had been “GM Powertrain” for 24 years.