General Motors Co posted net income for the first quarter of $1.95 billion that exceeded by a wide margin expectations on Wall Street on Thursday as the automaker posted results that broke even in Europe and improved results in every region from the same quarter last year.
Earnings by the automaker equaled $1.24 a share for the quarter or a record per share of $1.26 for the first quarter when adjusting for certain items that were related to expenses for litigation.
The earnings exceeded the predictions of analysts of $1.00 per share on flat revenue for the period January through March.
GM reported adjusted first quarter record earnings of $2.7 billion prior to taxes and interest, including restructuring charges of $300 million. Revenue grew over $1.6 billion to end the quarter at $37.2 billion.
The Detroit automaker earning net income of $945 million for the first quarter of 2015 equal to 56 cents per share and 86 cents per share when adjusting for special items.
The profit center for the carmaker remained North America, where pre-tax adjusted income was $2.3 billion, which was up from close to $2.2 billion one year ago.
The results for the company were helped due to a higher sales mix of trucks and SUVs, which are more profitable, and improved pricing.
The U.S. sales for the company during the first three months of 2016 were flat due in part because GM pulled back sales to rental companies due to focusing on the more profitable sales directly to the consumer.
GM said its average prices for a transaction after incentives to its retail customers last month was $35,800 across the U.S., which is approximately $5,000 more than the average of the industry.
Results were also strong in China, with GM reported earnings before taxes of $518 million.
We are growing in the area it counts, gaining U.S. retail share, outpacing the industry across Europe and capitalizing on the strong growth in the luxury and SUV segments throughout China, said CEO and Chairwoman Mary Barra.