General Motors has announced first quarter 2015 net income of US$0.9bn, or $0.56 per share including a net loss from special items of $0.5bn. On an operating level, there was some improvement in Europe while South America was flat.
The one off items included $0.4bn related to the decision to change the company’s business model in Russia and a $0.1bn charge related to the estimated costs of the ignition switch compensation programme.
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For year on year comparison, first quarter 2014 net income was $0.1bn, ($0.06 a share) after a net loss from special items of $0.4bn and recall-related pre-tax costs of $1.3bn.
The operating income measure – earnings before interest and tax (EBIT) adjusted – was $2.1bn after $0.1bn in restructuring costs. This was well up over Q1 2014’s $0.5bn, which included recall-related pre-tax costs of $1.3bn and $0.3bn for restructuring.
Revenue was down to $35.7bn compared to $37.4bn a year ago.
Segment results
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By GlobalDataGM North America reported EBIT-adjusted of $2.2bn versus $0.6bn in Q1 2014 which included a $1.3bn pre-tax charge for recalls.
GM Europe reported an EBIT-adjusted loss of $(0.2)bn, an improvement over Q1 2014’s $(0.3)bn in red ink which included $0.2bn for restructuring.
GM International Operations reported EBIT-adjusted of $0.4bn, up from $0.3bn.
GM South America EBIT-adjusted loss of $(0.2)bn was roughly the same as in the first quarter of 2014.
GM Financial reported earnings before tax of $0.2bn, matching its results for the first quarter of 2014.
“Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year,” said GM CEO Mary Barra in a statement.
“Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value.”
“Key vehicles like our recently launched full and mid-size trucks, and our cost discipline helped us deliver a solid quarter,” said CFO Chuck Stevens.
“We continue to take decisive actions to address issues head-on and to drive the company to generate strong results.”
The automaker reaffirmed its 2015 annual outlook announced on 14 January. GM expects its total EBIT adjusted and EBIT-adjusted margin to increase in 2015, compared to 2014, after adjusting 2014 for the impact of recall costs, with improved automotive results anticipated in all regions.
