Despite suggestions it might even book a loss due to recall costs, General Motors on Thursday said first quarter net income was US$0.1bn ($100m), or $0.06 a share, beating analysts’ estimates by a couple of cents.
Barclays plc industry analyst Brian Johnson earlier told Bloomberg News he’d lowered his earnings estimate to a cent per share loss from a 20 cent profit.
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In the last four weeks, all 11 analysts surveyed by Bloomberg had lowered their estimates 92% to four cents a share.
GM Q1 2013 net profit was $1.18bn or 67 cents a share adjusted. A year ago its Q1 net income was $900m.
At the operating level, a net loss from special items of $0.4bn and a $1.3bn pre-tax charge for recall repairs this year offset gains elsewhere. The special items were due largely to unfavourable Venezuelan curency movements.
Earnings before interest and tax (EBIT) adjusted was $0.5bn and included the $1.3bn pre-tax recall charge and $0.3bn in restructuring costs.
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By GlobalDataA year ago, EBIT-adjusted was $1.8bn, with $0.1bn for recalls and $0.1bn in restructuring costs.
Net Q1 revenue was $37.4bn compared to $36.9bn in Q1 2013.
Division results
GM North America reported EBIT adjusted of $0.6bn after the $1.3bn recall costs versus $1.4bn in 2013.
GM Europe reported an EBIT adjusted loss of $0.3bn, including $0.2bn restructuring costs, higher than last year’s Q1 loss of $0.2bn.
GM International Operations booked EBIT-adjusted of $0.3bn versus $0.5bn in 2013.
GM South America lost and EBIT-adjusted of $0.2bn after breaking even in the first quarter of 2013.
GM Financial earnings before tax were flat at $0.2bn.
“The performance of our core operations was very strong this quarter, reflecting the positive response of customers to the new vehicles we are bringing to market,” said CEO Mary Barra in a statement.
“Our revenue and cash flow improved this quarter and our underlying business performance remains on plan,” said CFO Chuck Stevens.
