GM earnings jump on strong North America sales

2017-04-28 10:00:13

(MENAFN- AFP) General Motors reported a jump in first-quarter earnings Friday, topping analysts' estimates following strong sales in North America.

The auto giant clocked another quarter of strong returns in North America from its line of trucks and crossover vehicles for which demand has remained strong amid relatively cheap gasoline prices.

Net income for the quarter ending March 31 was $2.6 billion, up 33.5 percent from the year-ago period. Revenues rose 10.6 percent to $41.2 billion.

"Our strong first quarter resulted from continued top-line growth and an intense focus on driving costs lower," GM chief financial officer Chuck Stevens said.

"As we refresh our crossover portfolio in the next several months, we expect to stay on track to meet our financial commitments for the year."

GM reported higher operating earnings in North America, making up for losses in Europe and South America and a decline in its international operations business, which includes China.

GM saw retail car deliveries fall 5.2 percent in China to 913,442 compared with the year-ago period, attributing the drop to a reduction of tax incentives on cars.

GM's earnings translated into $1.70 per share, far above the $1.46 expected by analysts.

The company's shares rose 1.6 percent to $35.10 in pre-market trading.

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