General Motors’ Q1 profits surge despite US sales dip

Detroit: General Motors reports a rise in first-quarter net income despite a slight dip in US vehicle sales.

The increase, exceeding 25%, is attributed to strong deliveries of pickup trucks and higher-profit vehicles.

While the average sales price per vehicle decreased slightly, pickup sales remained robust, contributing to the company’s overall performance.

General Motors’ first-quarter net income totalled $2.97 billion, with revenue climbing 7.6% to just over $43 billion compared to the same period last year.

Excluding one-time items, the company earned $2.62 per share, surpassing Wall Street estimates. The better-than-expected prices prompted an upward revision of the full-year net income guidance to range between $10.1 billion to $11.5 billion.

Adjusted 2024 earnings per share guidance also increased to a range of $9 to $10. Shares of the company surged more than 5% in premarket trading.

Chief Financial Officer Paul Jacobson attributed the slight drop in prices to the higher sales of lower-cost vehicles like the Chevrolet Trax small SUV. However, he noted a 3% increase in pickup truck sales in the US.

The company anticipates a 2% to 2.5% price decline for the full year but has not observed it yet.

Retail sales of electric vehicles saw a rise during the quarter, with GM increasing its battery production. The company aims to achieve a mid-single-digit profit margin on EVs next year.

Despite generating $3.84 billion before taxes in North America, GM experienced a $10 million loss in its international operations, including a $106 million loss in China.

The Cruise autonomous vehicle unit faced challenges, recording a pretax loss of $519 million as it works to recover from a serious crash and allegations of a cover-up in California.

CEO Mary Barra mentioned Cruise’s return to testing in Phoenix to update mapping and gather road information after suspending testing and robotaxi rides in California.