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April 30, 2019

GM reports better than expected Q1 profit

General Motors has reported stronger than expected first-quarter profits on the back of strong sales of trucks and lower costs. GM reported Q1 income of USD2.1bn, 93% ahead of last year's first-quarter.

By Sam Duke

General Motors has reported stronger than expected first-quarter profits on the back of strong sales of trucks and lower costs. GM reported Q1 income of USD2.1bn, 93% ahead of last year's first-quarter.

GM said its full-size truck launch is ahead of plan and drove strong pricing for the quarter in North America. Average transaction prices for GM's full-size crew cab pickup trucks are up USD5,800 over the outgoing models.

However, Q1 revenue declined by 3.4% to USD34.9bn.

GM North America posted an adjusted-EBIT of USD1.9bn. GM said Q1 sales of the 2019 Chevrolet   Silverado and GMC Sierra light-duty crew cabs were up 20% year over year and 'delivering on GM's strategy  to launch  high-content, high-margin  trucks  first'.

"GM's first-quarter operating results were in line with expectations we shared in January. My confidence in the year ahead remains strong, driven by our all-new full-size truck launch and our ongoing business transformation," said Mary Barra, GM chairman and CEO.

GM said the execution of company's transformation cost savings of USD2-2.5bn through 2019 remains on track.

GM CFO Dhivya Suryadevara said: "We're making progress on our business transformation. We expect our global product mix, launch cadence and cost efficiencies to drive earnings growth throughout the year."

GM  begins  the next phase  of  its full-size  pickup truck  launch  in  the second half of the year with  the 2020 Chevrolet  Silverado HD and GMC Sierra HD. These vehicles will  be  built at Flint Assembly, where  1,000 jobs were added and capacity increased.

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