General Motors Co.'s first quarter net income of $ 1.95 billion strongly exceeded analyst expectations as the automaker Thursday reported break-even results in Europe and improved results in all of its regions from the same period a year ago.
The automaker's earnings of $ 1.24 per share in the quarter, or a first quarter record $ 1.26 a share when adjusted for special items related to litigation expenses, eclipsed analysts predictions that GM would earn $ 1a share on flat revenue in the January-March period.
GM reported record first-quarter adjusted earnings of $ 2.7 billion before interest and taxes, including $ 300 million in restructuring charges, and its revenue grew by $ 1.6 billion to $ 37.3 billion.
The company earned $ 945 million in net income in first quarter 2015, or 56 cents a share (86 cents a share when factoring in special items that cost $ 547 million, or 30 cents a share).
The carmaker's profit center remained in North America, where adjusted pre-tax income totaled $ 2.3 billion, up from nearly $ 2.2 billion a year ago. The company's results were aided by a higher sales mix of more profitable SUVs and trucks and improved pricing.
The company's U.S. sales for the first quarter were flat, partly because GM has pulled back on sales to rental companies as it focuses on more profitable sales to consumers. The company, for example, said its average transaction prices after incentives to retail customers was $ 35,800 last month in the U.S., about $ 5,000 higher than the industry average.
Results also were strong in China, where the company reported pre-tax earnings of $ 518 million.
"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," Chairman and CEO Mary Barra said in a statement. "This strong quarter also reflects the excellent progress we're making to improve results in our more challenged global markets. Importantly, the continued success of our core business is enabling us to invest in advanced technology and innovations that will help the future of personal mobility."
GM reported a $ 6 million pre-tax loss in Europe, a region it has said that it would break even in this year after losing billions of dollars in the region over more than a decade. The carmaker lost $ 239 million before interest and taxes in the region a year ago. The automaker has been restructuring for years in Europe, and its sales there rose 6.4 percent in the first quarter.
The carmaker said it earned $ 379 million pre-tax for its International Operations and lost $ 67 million pre-tax in ailing South America, better than the $ 214 million pre-tax loss reported a year ago. GM Financial also earned $ 225 million before interest and taxes in the quarter.
The carmaker delivered 2.36 million vehicles in the January-March period, down 2.5 percent from the same months a year ago because of weakness in South America and Asia. Sales in South America fell nearly 26 percent in the quarter, and sales in its GM International region excluding China fell nearly 22 percent. Sales in GM's largest sales market, China, also slowed and were up just 0.2 percent year-over-year.
Earlier this year, GM raised its profit estimates for 2016, including earnings per share of between $ 5.25 and $ 5.75. GM stock closed at $ 32.19 a share on Wednesday, up 22 cents.
GM also has been focusing more on personal mobility and autonomous driving development. This year, GM has announced a $ 500 million investment into Lyft Inc., purchased the assets of ride-hailing company Sidecar Technologies Inc. and acquired California-based Cruise Automation to help it develop autonomous vehicle software and test driverless vehicles. The investment in Cruise Automation, expected to close in the second quarter, has been pegged at an estimated $ 1 billion.
The company also rolled out Maven, its personal mobility brand that includes a citywide car-sharing program in Ann Arbor. Maven is also expanding to other cities this year.
GM is the first of the Detroit Three to release earnings. Fiat Chrysler Automobiles NV is expected to report its first-quarter results Tuesday and Ford Motor Co. on April 28.
mburden@detroitnews.com
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