POSTED: Monday, May 17, 2010 - 1:40pm
UPDATED: Monday, May 17, 2010 - 2:26pm
General Motors Co. rode expense cuts from its bankruptcy and strong sales of redesigned models to its first quarterly net income in nearly three years, drawing the company closer to a stock offering that would repay at least part of its government aid.
The Detroit automaker said it made money because debt and other expenses were slashed by its stay in bankruptcy court last year, and because of strong new-model sales. It also generated higher revenue from growth in Asia and South America.
GM reported net income of $865 million, or $1.66 per share, in the first quarter. That compared with a loss of $6 billion loss, or $9.78 per share, a year earlier, as it skidded into bankruptcy protection. First-quarter revenue soared 40 percent to $31.5 billion.
New models such as the Chevrolet Equinox small sport utility vehicle and the Buick LaCrosse luxury sedan lifted GM's North American operations to a $1.2 billion profit, compared with a $3.4 billion loss in the year-earlier quarter. North America had been a continual drain on GM's profits before its bankruptcy filing last year.