General Motors’ first-quarter net income surged more than 25%, reaching $2.97 billion, on the strength of robust pickup truck sales and other higher-profit vehicles. Despite a slight decline in overall U.S. vehicle sales, GM’s average sales price per vehicle remained relatively stable at just under $50,000. The company’s revenue for the quarter also experienced a 7.6% increase, reaching over $43 billion. Excluding one-time items, GM’s earnings per share came in at $2.62, exceeding Wall Street estimates of $2.13. This solid financial performance prompted GM to raise its full-year net income guidance to a range of $10.1 billion to $11.5 billion, up from its previous forecast of $9.8 billion to $11.2 billion. GM’s adjusted 2024 earnings per share guidance was also revised upwards, from $8.50 to $9.50 to $9 to $10. The company’s strong quarterly results were attributed to robust pickup truck sales in the U.S., which increased by 3%. Despite industry trends suggesting price erosion, GM has not yet experienced a significant decline in pricing. However, the company anticipates a moderate decrease of 2% to 2.5% for the full year. Retail sales of electric vehicles saw an uptick during the quarter, and GM is ramping up its production of its own batteries. The company is aiming for a mid-single-digit profit margin on EVs next year. GM’s North American operations generated $3.84 billion in pre-tax earnings, while its international operations incurred a loss of $10 million, with China accounting for $106 million of that loss. The automaker’s Cruise autonomous vehicle unit faced challenges during the quarter, losing $519 million pretax as it navigates the aftermath of a serious crash and allegations of a cover-up in California. CEO Mary Barra stated that Cruise has resumed testing in Phoenix to update mapping and gather road information after suspending operations and robotaxi rides due to the loss of its California license.
GM’s Q1 Net Income Rises 25% on Strong Pickup Sales
