General Motors Co. acquired its first quarterly profit in almost three years, based on spending cuts as part of a reorganization to exit bankruptcy and strong sales of redesigned models, which the company approached a stock offering that would allow him to pay at least part of the federal aid it received.
The automaker said it achieved profits from sales of new models and because its bankruptcy last year allowed him to cut debt and other expenses. Furthermore, the company generated more profit for its growth in Asia and South America.
GM reported a net profit of $ 865 million, $ 1.66 per share in the first quarter. That compares to a loss of 6,000 million, $ 9.78 per share, a year earlier. The first-quarter revenue rose 40% to 31 500 million.
The new signature models like the Chevrolet Equinox and the Buick LaCrosse, contributed to GM operations in North America had revenues of 1,200 million, compared with losses of 3.400 billion in the same quarter last year.
The North American unit had been a constant burden for GM’s revenue before its application for federal bankruptcy protection.
GM’s chief financial officer, Chris Liddell, said that might be difficult to sustain the same level of earnings for the rest of the year because the production of the first quarter is usually higher, with producers getting ready for sales of spring.
The chief executive Ed Whitacre has forecast that profits will end the year at a time when car sales in the United States continues a slow recovery. That could lead to a sale of shares in GM and full payment of the 50,000 million dollars in federal aid that prevented GM went bankrupt last year. Currently, the U.S. government owns 61% of the company.
GM has returned a total of 6700 million dollars of federal aid. Barack Obama’s government expects to recover the remaining $ 43 000 million by selling its shares in the company.
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