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

Article by Christian A., 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.

If you liked the article, share on:

Topics: gm, loss

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries