GM averts first-quarter loss in 2014, logs $125 million in net profit

Article by Christian Andrei, on April 26, 2014

General Motors logged an 86-percent drop in net income in the first quarter of 2014 to $125 million, no thanks several factors including the current recall crisis that started in February. GM posted $1.3 billion in recall-related costs and around $200 million in restructuring costs in on its European operations.

GM also posted $427 million in one-time pretax charge credited to currency fluctuations in Venezuela. GM, however, was able to avoid a loss that analysts had expected and even managed to post its 17th consecutive quarterly profit – thanks to higher transaction prices of its trucks.

GM’s pretax income – which includes recall costs but excludes one-time items – fell 74 percent to $466 million while its revenues surged 1 percent to $37.41 billion. GM chief executive Mary Barra said the setbacks in the first quarter are part of their business.

She told analysts during a conference call that GM’s overall progress has been “sure and steady.” GM CFO Chuck Stevens confirmed GM’s target of gaining market share in North America in 2014, despite a possible slump in demand as brought by the recalls.

Barra said, that “although it is early,” it seems that the recall had not has significant impact on GM sales. The US carmaker around 7 million vehicles in the quarter, around 2.6 million of which are for a faulty ignition switches tied to 13 deaths.

GM said in a quarterly filing today with the United States Securities and Exchange Commission that due to the recalls, the carmaker is the subject of “various inquiries, investigations, subpoenas and requests for information" from several government agencies, including the SEC.

Topics: gm, loss

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016