GM announces first quarter earnings - ABC 12 – WJRT – Flint, MI

GM announces first quarter earnings

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DETROIT (WJRT) - (04/24/14) - All eyes were on General Motors Thursday morning, with the Detroit automaker set to announce its first quarter earnings.

Many analysts were predicting a big drop.

Those numbers came out just a short while ago.

It wasn't pretty, and that's putting it mildly.

General Motors says that during the first quarter, profits dropped by 86 percent.

It's been a stormy couple of months for GM, with nearly $7 million cars being recalled around the world, and that was clearly reflected by the financial numbers reported Thursday.

GM claimed a net profit of $125 million, its worst quarterly performance since leaving bankruptcy protection in 2009.

The ignition switch recall alone cost GM $1.3 billion. The company also spent $300 million in restructuring costs, mostly in Europe.

As far as how all of this affects stocks - GM made 6 cents per share, that's down from 58 cents per share a year ago.

Despite these drops, there is some positive news to find in all of this.

It appears that car buyers aren't abandoning GM because of the recalls.

U.S. sales actually went up 4 percent in March from a year ago.

And another positive - GM actually sold more cars in China this quarter than in the U.S.
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