General Motors posted a $3.2-billion first-quarter profit today and said its global sales increased 15% from a year ago to $36.2 billion. Add GM’s results to those put on the board by Ford and Chrysler in recent days, and the combined net profit of the Detroit Three was $5.9 billion for the first three months of 2011, compared to $1.3 billion a year earlier.
Net earnings for the first quarter nearly tripled to $3.2 billion, or $1.77 cents a share, from $900 million, or 55 cents a share, in the same period a year earlier, driven by strong car sales in the U.S. and China.
While GM's adjusted earnings topped analysts' expectations of 91 cents a share, vehicle prices disappointed analysts.
Inventories of big trucks on GM dealer lots have been growing recently as gas prices spike, so GM concedes it may need to ease production of those high-profit-margin vehicles. All three companies warn of rising commodity costs, and all have gained some sales, or pricing power, or both, as the Japanese earthquake took a greater toll on major Japanese brand competitors.
Prices for GM's cars and trucks dropped in North America and were flat in Asia and Europe. The only region they improved in was South America.
Revenue came in at $36.2 billion during the first quarter, ahead of analysts' estimates of $35.6 billion. Worldwide sales rose 12%, including a 25% increase in the U.S. and and a 10% gain in China, which has become GM's largest market.
But the auto maker's shares were down 2.3% at $32.29 in midday trading as investors digested lower-than-expected profit in North America (see Stocks to Watch Today) and a larger-than-expected profit decline in South America.
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