GM’s First-Quarter Earnings Jump 34%

A strong performance in North America hiked General Motors Co. net income in the first quarter climbed 34% to a record $2.6 billion. It was the company’s best any-quarter result since emerging from bankruptcy in 2009.

Revenue surged 11% to a record $41.2 billion, buoyed by a rich product mix in North America. The company also hiked dealer inventories ahead of planned production downtime this summer for retooling.

First-quarter adjusted earnings before interest and taxes rose 28% to a record $3.4 billion. EBIT jumped 34% to $3.4 billion in North America. Elsewhere, EBIT losses in Europe (-$201 million) and South America (-$115 million) offset gains in the rest of the world (+$319 million).

North American results were aided by a deliberate cutback in low-margin fleet sales and continued strong demand for high-profit fullsize pickup trucks. Those factors contributed about $600 million in first-quarter revenue, according to GM.

Unit sales in January-March advanced only 1% globally to 2.34 million units. Volume rose in North America (+2% to 815,700 units), Europe (+2% to 320,500) and South America (+6% to 146,600). But deliveries fell in China (-6% to 913,400 units) and elsewhere (-6% to 146,600).

GM Financial’s revenue for the period rose 38% to $2.9 billion. The unit’s adjusted EBIT grew about 50% to a record $300 million.