General Motors today said its first quarter earnings fell 90 percent to $62 million, significantly missing Wall Street estimates. GM says the decrease can be blamed on losses in the residential mortgage business of GMAC Financial Services. The good news is income from GM’s automotive operations managed to turn a profit of $272 million — down only slightly from last year’s $295 million.
On an adjusted basis, GM reported earnings of $304 for its automotive operations, much higher than the $40 million recorded for the year-ago quarter.
GM sold an all-time first quarter record 2.26 million cars and trucks in the first quarter of 2007, up 3 percent, or 67,000 units, over the first quarter of 2006. Sales in the GM Asia Pacific (GMAP) region grew more than 20 percent; GM Latin America, Africa and Middle East (GMLAAM) grew 17 percent, and GM Europe (GME) grew 6 percent. GM’s all-time sales record was achieved despite challenging market conditions in the U.S.
GM North America (GMNA) posted an adjusted loss of $85 million in the first quarter of 2007 (reported net loss of $46 million), an improvement of $166 million compared to an adjusted net loss of $251 million in the year-ago quarter (reported net loss of $292 million).
“This quarter’s results again demonstrate progress in the implementation of our North America turnaround plan. They reflect major cost reductions once again, which more than offset lower volume – a function of the disciplined implementation of our product-based sales and marketing strategy,†CEO Rick Wagoner said. “And, our newest products such as the GMC Acadia and Chevrolet Silverado have been well accepted by consumers, which gives us confidence that the most important element of our North America turnaround – product excellence – is well on track.â€
