GM reports $1 billion first quarter profit on strong North American sales
Detroit, MI, United States (AHN) – General Motors reported a first quarter profit of $1 billion on Thursday citing strong results in North America and continuing losses in Europe.
The car company earned 60 cents per share, eight cents better than Wall Street analysts expectations.
Sales were strong n North America, up 35 percent from a year ago, but sales lagged in Europe, weighing in GM’s bottom line and numbers.
In the same quarter a year ago, GM earned roughly $1.7 billion before special items. But GM’s operating profit before interest and taxes for the first quarter of 2012 was $2.2 billion, up 10 percent from the same period a year ago.
Also welcome news was GM’s raised forecast for overall industry sales for 2012, adding that “pent-up demand” would result in sales of 14 to 14.5 million, up a half million.
GM results bode well for the U.S. recovery that appears to have stalled of late.
The news was particularly cheered by U.S. taxpayers which still own a about a fourth of the company.
In mid-morning trading Thursday, shares of GM were off 2.4 percent at $22.28 a share.