GM 1Q Profit Rises 8 Times Above A Year Ago

DETROIT (WWJ) - General Motors earned $925 million in the first quarter, a huge increase from the $125 million dollar profit it posted during the same period last year, when the company was dealing with huge costs from the ignition switch recall.

"Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year," said CEO Mary Barra. "Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value."

The first quarter earnings this year were impacted by the cost of closing plants in Russia, plus more costs related to recalls. Before taxes and one time costs, GM earned $2.1 billion, it's best quarter since emerging from bankruptcy in 2009.

North America lead the way with a pre-tax income of $2.2 billion. GM lost $239 million in Europe and $214 million in South America. Other international operations, including Asia, earned $371 million.

GM was helped by strong sales of SUV's and pickups, which are its most profitable products.

"Key vehicles like our recently launched full and mid-sized trucks, and our cost discipline helped us deliver a solid quarter," said Chief Financial Officer Chuck Stevens. "We continue to take decisive actions to address issues head-on and to drive the company to generate strong results."

GM says for the full year, it expects to post earnings better than 2014.

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