General Motors posted its best operating results in 11 years in the first quarter, lifted by a jump in sales. The Detroit earned $3.2 billion during the first quarter of 2011, up from $865 million a year ago. Revenue was up $4.7 billion to $36.2 billion, compared with the first quarter of 2010.
“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.”
Roughly half of GM’s first quarter profit came from a one-time gain from sales of the company’s interests in Delphi Automotive and Ally Financial’s preferred stock.
GM finished the quarter with very strong total liquidity of $36.5 billion.
“GM has great potential to deliver profitable growth around the world as the recovery continues,” said Dan Ammann, senior vice president and CFO. “While we’re encouraged, we keenly recognize we have more opportunities to leverage our scale, improve spending and investment efficiencies, and optimize our strong balance sheet.”
– By: Omar Rana