GM’s first quarter profits declined to $1 billion

Article by Christian Andrei, on May 4, 2012

General Motors said that it has a disappointing outlook for the next six months at its core market in North America as it revealed its concerns about the recovery of the U.S. economy. The first quarter profits of GM declined to $1 billion, surpassing expectations. Its revenue in the first quarter grew by 4% to $37.8 billion while the global profit margins had a slight improvement from 5.6% to 5.8%.

GM reported earnings of $1.7 billion in North America compared with $1.3 billion the prior year on an operating basis. GM said that its profits got a boost from the stronger pricing even as its market share in the U.S. dropped by 19.6% to 17.5% for the entire 2011.

GM said that profitability in the area is expected to stay level until the second and third quarters as it gets ready to convert plants to make a new generation of full-sized pickup trucks. GM was able to increase its operating margin in North America to 7%, from 5.6% the past year, higher than the 5% figure that the U.S. automakers had hoped to achieve.

Its rival, Ford Motor Co., posted a 16% increase in operating profit in North American during the first quarter to $2.1 billion, with a profit margin of 11.5%.

In the European region where GM has tried hard to restore profits for years and industry-wide new vehicle sales have become weaker, it reported $256 million in losses – a drastic difference from the $5 million profit posted a year ago. In the latest period, GM's international operations (including China, Russia and other emerging markets) posted earnings of $529 million. But just a year ago, it posted a profit of $586 million.

Topics: gm, profit

If you liked the article, share on:


Login or Create new account to add a comment!


Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016
Say hello to the fastest accelerating production car in the world: the new 2017 Tesla Model S P100D. Powered by a 100 kWh battery, this new model basically outruns almost...
by - October 25, 2016
Ever heard of the “Lynk & Co” automotive brand? Well, it is highly likely people haven’t. This is practically because this is new brand created by the joint venture between...
by - October 25, 2016
Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016