(MENAFN) General Motors, the American automotive giant headquartered in Detroit, announced a significant increase in net profits during the first quarter of this year, surging by over 25 percent. This notable achievement was attributed to robust sales performance in the segment of small trucks and other high-margin vehicles, which offset a minor dip in overall car sales across the United States.
Despite facing a modest decline in U.S. car sales, General Motors highlighted the resilience of its revenue streams, particularly driven by strong deliveries of pickup trucks and other profitable models. The company underscored that despite a slight decrease in the average sales price compared to the previous year, its pickup truck sales remained robust, demonstrating stability in pricing dynamics compared to industry peers.
According to General Motors' financial report released on Tuesday, the company recorded a total net income of USD2.97 billion for the period spanning January to March, marking a substantial 7.6 percent increase in revenue compared to the corresponding period last year, reaching just over USD43 billion. Furthermore, the company exceeded Wall Street expectations by achieving revenues of USD2.62 per share, surpassing estimates of USD2.13.
Buoyed by strong financial performance, General Motors also revised its full-year net income projections upwards, now anticipating a range of USD10.1 billion to USD11.5 billion, compared to the previous forecast of USD9.8 billion to USD11.2 billion. Similarly, adjusted earnings per share for the fiscal year 2024 were revised to a range of USD9 to USD10, up from the earlier projection of USD8.50 to USD9.50.
Paul Jacobson, the company's chief financial officer, attributed the slight decline in prices to a strategic shift in product mix, as General Motors opted to sell a higher proportion of lower-cost vehicles such as the Chevrolet Trax small SUV, priced starting at USD21,495, including shipping. Despite this adjustment, the company remains optimistic about its financial outlook, buoyed by the continued strength of its key product segments and prudent financial management strategies.
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