GM Profit Tumbles 69% as European Losses Mount

General Motors Co. netted $1 billion (€758 million) in the first quarter of this year compared with $3.2 billion (€2.4 billion) in the same period of 2011.

Revenue grew 4% to $37.8 billion (€28.7 billion). Sales rose 3% to 2.3 million vehicles worldwide, bolstered by record sales of GM vehicles in China.

Last year's first quarter was boosted by a $1.6 billion (€1.2 billion) gain from the sale of GM's stake in former parts unit Delphi Automotive LLP. Operating income excluding one-time items increased to $2.2 billion (€1.7 billion) from $2 billion (€1.5 billion) a year earlier.

First-quarter results varied dramatically by region:

NORTH AMERICA: Operating profit jumped 35% to $1.7 billion (€1.3 billion), aided by higher volume and improved pricing. Operating margin expanded to 7% from 5.6%. Revenue grew 9% to $24.2 billion (€18.4 billion), and sales rose 3% to 703,000 vehicles. GM expects similar strength in the second and third quarters of 2012.

EUROPE: Operating results swung to a $256 million (€194 million) loss in the latest quarter from a $5 million (€4 million) profit a year earlier. The company also took $590 million (€447 million) in writedowns in the region. Revenue dropped 20% to $5.5 billion (€4.2 billion). Chevrolet boosted its volume in Europe 9% to 122,000 vehicles.

But sales of Opel and Vauxhall brand vehicles fell 14% to 275,000 units. CEO Dan Akerson says GM will announce plans for its Opel restructuring in the next three months.

SOUTH AMERICA: Operating income slipped 8% to $83 million (€63 million). Revenue edged up 1% to $3.9 billion (€3 billion). Sales were little changed at 248,000 vehicles.

INTERNATIONAL: Earnings fell 10% to $529 million (€401 million) for GM's other international operations, including Asia. Revenue jumped 17% to $6.1 billion (€4.6 billion). Sales increased 9% to 928,000 vehicles.