Automaker General Motors Co. (GM, GMM.TO) on Thursday reported a 14 percent decline in profit for the first quarter, reflecting lower earnings in North America that more than offset a narrower loss at its European operations. Revenue for the quarter declined 2 percent. However, both revenue and adjusted earnings per share beat analysts' expectations.
Dan Akerson, chairman and CEO said, "The year is off to a solid start as we increased our global share with strong new products that are attracting customers around the world. In addition, we saw progress in Europe thanks to strong cost actions and great vehicles like the Opel Adam and Mokka."
GM's retail vehicle sales in the quarter were 2.36 million units, up 3.6 percent from 2.28 million in the same period last year, reflecting higher sales in North America and Asia/Pacific, Middle East and Africa.
In North America, GM reported adjusted earnings before interest and tax or EBIT of $1.41 billion, down 13 percent from the year-ago period. The company sold 829,000 units in North America, down 2 percent from last year.
In Europe, GM's EBIT-adjusted loss was $175 million, narrower than adjusted loss of $294 million in the year-ago quarter. GM International Operations or GMIO reported adjusted earnings of $495 million, down 5 percent from the prior-year period.
GM South America or GMSA reported EBIT-adjusted loss of $38 million, compared to adjusted earnings of $153 million in the prior-year period.
GM's first-quarter net income was $865 million or $0.58 per share, down from $1.00 billion or $0.60 per share in the year- ago quarter.
The latest-quarter results included net loss from special items that reduced net income by $200 million or $0.09 per share, primarily due to the devaluation of the Venezuelan currency. The prior-year quarter's results included net loss from special items of $600 million or $0.33 per share due to goodwill impairment charges.
On average, seventeen analysts polled by Thomson Reuters expected the company to report earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.
Adjusted earnings before interest and tax or EBIT was $1.77 billion, compared to $2.18 billion in the first quarter of 2012. The latest quarter's results include the impact of $100 million in restructuring costs.
Net revenue for the quarter declined 2 percent to $36.88 billion from $37.76 billion in the same period last year. Analysts' revenue estimate for the quarter was $36.60 billion.
GM's adjusted automotive free cash flow for the quarter was negative $1.33 billion, compared to positive $0.28 billion in the year-ago period.
Looking ahead, Dan Ammann, senior vice president and CFO said, "With more than 40 new vehicle introductions this year globally, our focus will be on flawless launches of the vehicles that will drive results this year and into 2014."
In Thursday's regular session, GM is trading at $31.54, up $1.36 or 4.51 percent on a volume of 4.06 million shares.
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