GM profit beats forecasts

City A.M. Reporter
General Motors posted stronger-than-expected quarterly profit, driven by a recovery in the US market and strong sales in Asia.

Quarterly net profit more than tripled from a year ago and its operating profit narrowly beat expectations.

Even though total sales rose 15 per cent to $36.2bn (£22bn) against analyst expectations of $35.6bn, "all of this benefit was lost to price," Jefferies & Co analyst Peter Nesvold said.

"The pricing headwind was not a material surprise, as GM very publicly increased incentives in the first half of the quarter," the analyst said.

Prices for GM's cars and trucks fell in North America and stayed flat in Asia and Europe. They rose in South America.

Chief financial officer Dan Ammann said that GM recently announced a price increase on most of its vehicle lineup that went into effect earlier this week. Continued price increases may come as the year goes on, Ammann said.

"From our point of view, it's a solid quarter. It's good progress. It sets up a good foundation for the balance of the year," Ammann said.