General Motors (GM 35.00, +0.46) has climbed 1.3% in pre-market after reporting better than expected results for the first quarter. Today's earnings beat from the industry heavyweight comes after Ford (F 11.49, +0.02) beat expectations on Thursday morning.
General Motors reported above-consensus first quarter earnings of $1.70 per share on a 10.6% year-over-year increase in revenue to $41.20 billion, which also exceeded expectations.
Earnings before interest, tax, depreciation, and amortization increased 27.9% year-over-year to $3.40 billion while EBIT-adjusted margin rose 110 basis points to 8.2%.
Adjusted automotive free cash flow was a negative $600 million, which was $800 million better than one year ago. The company expects future improvement in this category due to its sale of the Opel/Vauxhall brand to PSA Group.
Total worldwide vehicle sales declined to 2,344,000 from 2,378,000 one year ago.
Looking at the segment breakdown, U.S. deliveries totaled 689,521 with crossover deliveries increasing 16.0% while truck deliveries grew 3.0%. This produced the best first quarter sales since 2008. U.S. retail market share improved 30 basis points to 16.9%. North American earnings before interest, tax, depreciation, and amortization increased to $3.42 billion from $2.30 billion.
The European segment recorded a $200 million loss after a breakeven quarter one year ago. Negative currency translations related to Brexit were partially offset by favorable pricing on launch vehicles.
International earnings before interest, tax, depreciation, and amortization decreased to $319 million from $379 million. Retail deliveries in China decreased 5.2% to 913,442 due to lower vehicle tax purchase incentives.
The South American unit recorded a loss of $115 million after recording a loss of $67 million during last year's first quarter. South American deliveries increased 10.9% year-over-year to 147,000 vehicles.
GM Financial earnings before interest, tax, depreciation, and amortization increased by $200 million to $300 million.