General Motors Co.’s first-quarter net profit more than doubled to $2 billion, as strong truck sales in US and Europe, cheap gasoline, and solid economic growth made conditions favorable.
GM reported net income of $2 billion, or $1.24 per diluted share, up from $900 million, or 56 cents per share a year earlier. Its revenue jumped by 4% to $37.3 billion, up from $35.7 billion in the same period a year ago.
The results beat analyst expectations of $1 per share.
Mary Barra, GM chairman and CEO, said:
We’re growing where it counts, gaining retail share in the U.S., outpacing the industry in Europe and capitalizing on robust growth in SUV and luxury segments in China. This strong quarter also reflects the excellent progress we’re making to improve results in our more challenged global markets. Importantly, the continued success of our core business is enabling us to invest in advanced technology and innovations that will help shape the future of personal mobility.
Convivial trucks and sport utilities’ sales in North America continued to drive profits, despite a decline in the market share that the automaker attributed to lower fleet sales. The American automaker also broke even in Europe, up from a $200 million loss in the same period a year ago.
General Motors expects its performance to top last year’s strong earning.
“The quarter was a great start to a year in which we anticipate strong growth in earnings and free cash flow,” said General Motors Chief Financial officer Chuck Stevens.