General Motors Posts $865 Million Q1 Profit

General Motors Posts $865 Million Q1 Profit

New models, strong sales and cost cutting measures have put General Motors in the black for the first quarter of 2010. GM posted a $865 million Q1 net profit, after posting staggering losses for five straight years in a row.

“We’re pleased with our first quarter performance, in particular achieving profitability,” said Chris Liddell, vice chairman and chief financial officer. “In North America we are adding production to keep up with strong demand for new products in our four brands. We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet.  These are all important steps as we lay the foundation for a successful GM.”

Recently GM announced it had paid back the almost $8 billion in loans from the Canadian and U.S. governments, however, the U.S. Treasury also fronted $43 billion to save the American auto giant from solvency. If GM can sustain profits then the U.S. government may look to sell-off its shares of the automaker by the end of the year.

[Source: Automotive News]

Official release after the jump:

PRESS RELEASE

GM Reports First Quarter 2010 Results GM achieves net income of $0.9 billion and EPS of $1.66

2010-05-17

DETROIT, Mich. – General Motors Company today announced its first quarter 2010 results, marked by revenue of $31.5 billion and operating income of $1.2 billion.  Net income attributable to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66.

GM’s first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand.

GM North America had EBIT in the first quarter 2010 of $1.2 billion, up from a loss of $3.4 billion in the fourth quarter 2009.  GM Europe had a loss before interest and taxes of $0.5 billion; an improvement of $0.3 billion from the fourth quarter.  GM International Operations posted EBIT of $1.2 billion, up $0.5 billion from the fourth quarter.

Cash flow from operating activities was $1.7 billion and after adjusting for capital expenditures of $0.7 billion, free cash flow was $1.0 billion.  GM ended the first quarter with $35.7 billion in cash and marketable securities, including funds in escrow.

“We’re pleased with our first quarter performance, in particular achieving profitability,” said Chris Liddell, vice chairman and chief financial officer. “In North America we are adding production to keep up with strong demand for new products in our four brands. We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet.  These are all important steps as we lay the foundation for a successful GM.”