General Motors reported soaring first-quarter earnings Thursday, easily topping expectations as it broke even in Europe and scored more banner results in North America. Earnings came in at $2.0 billion, compared with $0.9 billion in the year-ago period.
Revenues were up 4.5 percent to $37.3 billion. GM boasted record pre-tax profits in North America of $2.3 billion. Auto deliveries were up slightly in the region, where sales of sport utility vehicles and other large cars have boosted GM's profits.
GM's improved performance in Europe reflects the benefits of cost-cutting in the region and successful launches, said chief financial officer Chuck Stevens. GM last reported an annual profit in Europe in 1999.
The automaker is monitoring the British debate on whether to exit the European Union in light of its assets held in British pounds and manufacturing and logistics operations throughout the region.
"Our biggest concern long-term is what that does to the commercial flows," Stevens said.
Pre-tax earnings in GM's International Operations division, which includes China, were essentially flat at $400 million. However, GM's continued to struggle in South America, where the pre-tax loss was $100 million, half the amount in the year-ago period. Auto deliveries slumped 26.1 percent to 133,000 in the quarter, with Brazil sales falling by 36,000. The automaker reduced headcount in the region by more than 20 percent in the last year, Stevens said. GM confirmed its projection of 2016 earnings per share of $5.25 to $5.75, well above the 2015 figure of $5.02.
"We're growing where it counts, gaining retail share in the US, outpacing the industry in Europe and capitalising on robust growth in SUV and luxury segments in China," said chief executive Mary Barra.
Quarterly earnings translated into $1.26 per share, 25 cents better than analyst expectations.
GM shares shot up 3.3 percent in pre-market trade to $33.26.
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