News Summary: GM 1Q profit dragged down by recalls


GM EARNINGS: General Motors' first-quarter profit fell 86 percent to $125 million, mostly due to a $1.3 billion charge for recalling 7 million vehicles worldwide. It was GM's worst quarterly performance since 2009.

BETTER THAN EXPECTED: Excluding one-time items like a $419 million charge for revaluing Venezuelan assets, GM earned 29 cents per share. That was far above Wall Street's estimate of 3 cents per share. Revenue rose 1 percent to $37.4 billion.

WHAT'S NEXT: GM says it's too soon to say when recall-related costs will end. But it reiterated its expectation that pretax profits will grow modestly this year.

View article comments Leave a comment