Suche
Mein Konto
GM exceeds expectations: net profit rises by 24.4 percent
General Motors shares rise after successful quarterly results: sales and profits exceed expectations. Forecast increased to $12.5-14.5 billion. Automotive industry news.
GM exceeds expectations: net profit rises by 24.4 percent
The US car manufacturer General Motors performed better than expected in the first quarter thanks to brisk demand for combustion engine models and stable prices. Net profit rose 24.4 percent from January to March compared to the same period last year to $2.98 billion. Earnings per share of $2.62 were well above analysts' estimates. Sales also rose more than expected by 7.6 percent to $43 billion. Adjusted operating income was $3.9 billion, almost two percent higher than the previous year, while return on investment was 9.0 percent.
Despite rising interest rates, consumers have shown remarkable resilience, said CFO Paul Jacobson. General Motors raised its annual adjusted operating income target by half a billion to between $12.5 billion and $14.5 billion. In China, the automaker posted a loss of $106 million in the quarter, due to growing competition and a sell-off of inventory. Sales in China fell by 4.5 percent to 441,000 vehicles.
The loss-making Robotaxi subsidiary Cruise, which had to stop operations after an accident, remains a challenge for CEO Mary Barra. General Motors plans to reduce spending on Cruise by $1 billion. Nevertheless, $400 million was invested in the future business in the first quarter. Barra emphasized that since the beginning of April, a small fleet of Cruise in Phoenix, Arizona has returned to road exploration trips.
GM shares ultimately closed 4.37 percent higher at $45.10 on the NYSE. This shows that investors reacted positively to the quarterly results. General Motors beat expectations and raised its forecast, indicating strong performance for the company in the first quarter of 2024.