{"id":9064,"date":"2024-05-01T12:43:01","date_gmt":"2024-05-01T12:43:01","guid":{"rendered":"https:\/\/laprensanewspaper.com\/?p=9064"},"modified":"2024-05-01T12:43:01","modified_gmt":"2024-05-01T12:43:01","slug":"general-motors-reports-strong-first-quarter-profits-as-prices-help-offset-small-us-sales-dip","status":"publish","type":"post","link":"https:\/\/laprensanewspaper.com\/index.php\/2024\/05\/01\/general-motors-reports-strong-first-quarter-profits-as-prices-help-offset-small-us-sales-dip\/","title":{"rendered":"General Motors reports strong first-quarter profits as prices help offset small US sales dip"},"content":{"rendered":"

By TOM KRISHER AP Auto Writer<\/a><\/p>\n

DETROIT, Apr 23, 2024 (AP): Despite a small dip in U.S. vehicle sales, General Motors’ first-quarter net income rose more than 25% on strong deliveries of pickup trucks and other higher-profit vehicles.<\/p>\n

The automaker said that while its average sales price per vehicle was down slightly from last year at just under $50,000, pickup sales remained strong, and it’s not seeing the price erosion across its lineup that other companies have experienced.<\/p>\n

GM on Tuesday said it made $2.97 billion from January through March, with revenue increasing 7.6% over the same period a year ago to just over $43 billion. That topped the $41.15 billion that analysts polled by FactSet were calling for.<\/p>\n

Excluding one-time items the company made $2.62 per share, easily beating Wall Street estimates of $2.13 per share.<\/p>\n

Dan Ives of Wedbush said in a note to clients that GM delivered a solid performance as it concentrates on profitability and managing expenses.<\/p>\n

\u201cThis was a major \u2018prove me\u2019 quarter for GM and shows the long awaited turnaround now appears to be underway for Barra & Co.,\u201d he wrote, referring to CEO Mary Barra.<\/p>\n

GM’s better-than-forecast prices also allowed the company to raise its full year net income guidance slightly to a range of $10.1 billion to $11.5 billion, up from $9.8 billion to $11.2 billion. Adjusted 2024 earnings per share guidance rose to a range of $9 to $10 from $8.50 to $9.50.<\/p>\n

Analysts are looking for earnings of $8.89 per share for the year.<\/p>\n

Shares of the company, which is planning to move its\u00a0Detroit headquarters<\/a>\u00a0to a new downtown office building next year, jumped more than 5% in early morning trading.<\/p>\n

Chief Financial Officer Paul Jacobson said prices dropped a little because GM sold a higher share of lower-cost vehicles such as the Chevrolet Trax small SUV, which starts at $21,495 including shipping. \u201cThe portfolio as a whole has been pretty strong,\u201d he said, noting that pickup truck sales were up 3% in the U.S.<\/p>\n

The company still has assumed that prices will drop 2% to 2.5% for the full year, but has not seen the decline yet, Jacobson said.<\/p>\n

Retail sales of electric vehicles rose during the quarter, and GM is producing more of its own batteries, he said. The company is on track to hit a mid single-digit profit margin on EVs next year.<\/p>\n

CEO Mary Barra, in a letter to shareholders, said that GM is seeing \u201cgood early sales momentum\u201d for vehicles like the Cadillac LYRIQ, an electric SUV. The company has also benefited from a significant drop in the cost of battery cells and lower raw material prices, she added.<\/p>\n

GM’s battery module production is up 300% over the past six months. Barra says the company projects doubling its current capacity by the end of the summer.<\/p>\n

\u201cImproving module availability is enabling higher vehicle production, which we believe will help us win even more new customers in the growing U.S. EV market,\u201d she said.<\/p>\n

Jacobson noted during GM’s conference call that adjusting pricing on its 2024 Blazer EV has been well received by dealers and customers.<\/p>\n

During the quarter, the company made $3.84 billion before taxes in North America, but lost $10 million in its international operations, including a $106 million loss in China.<\/p>\n

Barra said that there have been challenges with China over the last several years, including the COVID-19 pandemic and supply chain issues, but that GM remains committed to the country long term.<\/p>\n

\u201cWe believe that it’s a market that over the medium term will have substantial growth,\u201d she added.<\/p>\n

The automaker’s troubled Cruise autonomous vehicle unit lost $519 million pretax as it tries to recover from a serious crash and allegations of a cover-up in California. Barra said Cruise, which had suspended testing and robotaxi rides after losing its California license, returned to testing in Phoenix to update mapping and gather road information.<\/p>\n

Jacobson said that full-year expenses for Cruise at anticipated to be around $1.7 billion.<\/p>\n

___________________<\/p>\n

Michelle Chapman in New York contributed to this report.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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