- By Mayank Marwah
The top U.S. automaker General Motors (GM) said that its net income in the first quarter of the year surged nearly 34% to $2.61 billion from the same quarter last year when it earned $1.93 billion. The company's EPS stood at $1.70 for the quarter compared with $1.26 in the first quarter of the previous year. General Motors' CEO Mary Barra commented in a press release: "Our first-quarter results reflect our resolve to grow profitably and demonstrate the strong earnings power of this company."
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The intrinsic value of GM
Here's a comprehensive look at the top Detroit automaker's quarterly performance.
First quarter figures
General Motors registered first quarter revenue of $41.2 billion, up 10.6% from last year's first quarter revenue of $37.3 billion. The company derived its profits mainly from North America and China while it lost money in Latin America and Europe.
As far as the full year goes, the company remains optimistic to post better compared with 2016. If General Motors' Q1 earnings is compared with that of Ford (NYSE:F), the former has a clear edge. Ford's Q1 profits plunged 35%. The Blue Oval expects 2017 earnings to be low as compared with 2016.
Adjusted EBIT stood at a first quarter record of $3.4 billion, up from $2.7 billion in Q1 of the previous year. As far as the global wholesale unit sales are concerned, it amounted to 1.48 million units, which is a first quarter record. In contrast, global retail sales plunged to 2.34 million units from 2.38 million units a year ago.
During the first quarter, the company said that its net cash generated from operating activities was $2.04 billion whereas in the prior year, net cash used in operating activities stood at $108 million. Capital expenditure in the first quarter totalled $1.98 billion as compared with $2.27 billion last year first quarter.
Segment-by-segment Q1 performance
As far as North America is concerned, General Motors earned pretax profits of $3.4 billion, up 48.8% from a year- ago quarter. Adjusted EBIT amounted to $3.4 billion representing a sharp rise from $2.3 billion reported in last year's Q1.
General Motors' operations in Europe experienced a 4.3% decrease in revenue for the quarter to $4.5 billion. GM Europe posted a $200 million loss in Q1 as compared with last year's first quarter where it was able to break even.
In South America, GM registered a $100 million pretax loss which is equal to the loss it suffered in the year- ago quarter.