Despite falling sales, North America's top automaker has reported a healthy income for the first quarter of 2019.
General Motors announced Tuesday morning it earned $34.9 billion in net revenue for the first three months of the year, resulting in a net income of $2.1 billion when reported through generally-accepted accounting principles (GAAP). That figure comes to $2.3 billion once adjusted for earnings before interest and taxes.
In its first-quarter earnings report, the income translates to $1.48 per share under GAAP for the Detroit-based automaker. It also reflects current consumer tastes, with over 80 per cent of their delivered U.S. vehicles being trucks, SUVs and crossovers.
In addition, GM says they will go forward with their plan for a full-scale truck launch to meet the current customer demand. First-quarter sales of the Chevrolet Silverado and GMC Sierra pickup trucks were up 20 per cent over first-quarter 2018, being sold at an average of $5,800 higher per vehicle than those made in the 2018 model year. Overall, first-quarter sales for GM were down seven per cent from the year before.
The first-quarter analysis comes when the industry is still trying to adjust to the news of five plant closures, including the Oshawa Assembly Plant. GM CEO Mary Barra said these earnings show that they are on track in its current restructuring.
"GM's first-quarter operating results were in line with expectations we shared in January," said Barra in a statement. "My confidence in the year ahead remains strong, driven by our all-new full-size truck launch and our ongoing business transformation."
GM is hoping to save a total of $2.5 billion dollars through 2019.
General Motors stock was down in early trading at the New York Stock Exchange. As of 10:15 a.m. Tuesday, GM shares were trading down $1.30 from the $39.75 a share price at the opening bell.
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