General Motors Company (NYSE:GM) released its results from the first quarter of the year this morning, posting earnings of 29 cents per share, excluding items. The automaker’s revenue was $37.4 billion—an increase from $36.9 billion in the same quarter a year ago. Analysts had been expecting the automaker to report earnings of just 3 cents per share on $38.43 billion in revenue. Diluted earnings per share were 6 cents, compared to 58 cents in the same quarter a year ago.
Examining the results
First quarter sales rose to $37.4 billion, while profits fell to $100 million for the quarter, after the payments of preferred dividends, although that was still ahead of expectations. This was the worst quarterly profit since General Motors Company (NYSE:GM) left bankruptcy.
The automaker reported net losses of 23 cents per share from special items of $.4 billion and a $1.3 billion charge due to repairs from the massive recall of millions of small cars. Other special items were related to changes in the exchange rate General Motors Company (NYSE:GM) uses for re-measuring the net assets of its subsidiaries in Venezuela.
General Motors Company (NYSE:GM) reported that its U.S. market share edged lower from 17.7% last year to 17% this year. Global share fell to 11.1%.
Breaking down General Motors’ earnings
North America operating profits declined to $557 million due to a $1.3 billion charge associated with a massive recall of 7 million vehicles. Of that recall, 2.6 million of those were due to faulty switches. Dealers began receiving replacement parts for the recalled vehicles earlier this month. The charge had an impact of 48 cents per share.
General Motors Company (NYSE:GM)’s losses in South America increase from $38 million last year to $156 million this year. The automaker cited lower sales and also currency changes. GM’s European business also posted higher losses of $284 million—another significant increase—from $152 million in the same quarter a year ago. The automaker’s international profits fell to $252 million, compared to $472 million in the same quarter a year ago.