GM reports record first-quarter profit driven by strong sales of high-profit trucks and SUVs

General Motors Co (NYSE:GM) has reported a record first-quarter profit driven by strong sales of its high-profit trucks and SUVs in the US.

The autos giant saw its net income rise to US$2.6bn for the three months to March, up from US$2.0bn a year earlier, giving an operating profit  of US$1.70 per share, well above market estimates for US$1.47 per share.

GM’s first quarter revenue rose by 11% to US$41.2bn, also beating estimates of US$40.6bn, as sales in the company’s most lucrative market were up even though the overall industry was down.

Better prices, mainly on trucks and SUVs, drive US sales growth

GM’s US sales rose by just under 1% in the quarter while the whole industry was down 1.5%.

The group made profit of US$3.4bn before taxes in North America, up almost US$1bn, or 50% on a year earlier.

GM’s chief financial officer Chuck Stevens attributed US$400mln of the increase to better prices, mainly on trucks and SUVs, and US$500mln on cost cuts.

In early trading, GM shares were 0.8% to US$34.81, having gained about 10% in the year to date.

Story by ProactiveInvestors