General Motors Co. (Detroit) said its first-quarter profit surged by more than a third, paced by operations in its home market.
The automaker reported a quarterly profit of $2.6 billion, or $1.70 a share, up from $1.95 billion, or $1.24, for the first three months of 2016. Revenue rose 10.6% to $41.2 billion.
GM’s profit engine was North America, which generated a $3.4 billion profit before interest and taxes, up from $2.3 billion a year earlier.
The company’s US deliveries of cars and light trucks rose 0.8% during the period. GM’s sales results for the quarter were better than the industrywide 1.5% decline. Its share of the market increased to 17.1% from 16.7% a year earlier, according to Autodata Corp. (Mahwah, NJ).
Sales of more profitable trucks increased 8.3% during the quarter while GM’s deliveries of cars fell 16%, according to Autodata.
The first-quarter earnings results “reflect our resolve to grow profitably and demonstrate the strong earnings power of this company,” CEO Mary Barra said in a statement.
GM also reported a pretax profit of $319 million in its international operations, including China. That was down from $379 million a year earlier. The company posted a $201 million loss in Europe and a $115 million deficit in South America. The losses in both regions were worse than in 2016’s first quarter.
The company is in the midst of exiting Europe after agreeing last month to sell its Opel/Vauxhall unit and GM Financial’s European operations to PSA Group (Paris). GM has been losing money in Europe for almost 20 years.