GM’s Net Income Drops 60%

General Motors Co. reports that its net revenue in the first quarter slipped 3% to $36.1 billion, and net income plunged to $1 billion from $2.6 billion in the same period last year.

GM cautioned in February that first-quarter results would be weak, mainly because of lost truck production caused by scheduled retooling in North America.

The company says January-March results also were hurt by the cost of restructuring GM Korea, slumping consumer demand for conventional cars, higher commodity costs and unfavorable exchange rates.

Adjusted earnings before interest and taxes fell 28% to $2.6 billion. Global vehicle deliveries from continuing operations, which excludes the Opel unit GM sold last August, fell 19% to 2.10 million units. Volume in North America shrank 14% to 827,000 units.

GM’s quarterly operating profit in North America declined to 8% from at least 10% over the last several periods. But in China—GM’s second-largest market—income surged 18% to a record $597 million. The company describes its quarterly results, which surpassed analysts’ expectations, as “solid” and says full-year EBIT should be similar to 2017.