With its bottom line boosted by one-time gains from asset sales, General Motors Co. more than tripled first-quarter earnings, posting a $3.2 billion, $1.77 a share, profit as the revenue from its global business grew by 15%.
“We are on plan,” said Dan Akerson, chairman and CEO.
“GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth,” Akerson said in a statement Thursday.
However, GM’s financial statement also showed that the company’s struggling European operations remained in the red and profits from the company’s European and South American operation declined in the first quarter of 2011.
The first quarter figures reflect GM’s controversial decision to heavily increase its incentive spending in the United States. Though costly, the move appeared to pay off, boosting home market sales by 26%, to 592,545 cars, trucks and crossovers during the period.