You may not be able to cost-cut your way to success, but it certainly helped General Motors during the first quarter of 2010, the long-troubled maker delivering a net profit of $865 million on $31.5 billion in revenues.
Though currently a privately-held company, with the U.S. Treasury holding a 61% stake, GM reports that would have worked out to $1.66 a share, a sharp turnaround from just one year ago. In the first three months of 2009, a period during which the U.S. auto industry melted down and the automaker started preparing for bankruptcy, GM reported a $6 billion loss, or $9.78 a share.
“We’re pleased with our first-quarter performance, particularly in achieving profitability,” said Chris Liddell, GM’s new Chief Financial Officer. He pointed to the success of new models — such as the Chevrolet Equinox — as well as cost control, improved sales in emerging markets and improved cash flow as “important steps as we lay the foundation for a successful GM.”