General Motors on Tuesday reported net income of $2.4 billion in the first quarter, down 19 percent from a year earlier after accounting for buyout payments to thousands of salaried employees and some Buick dealers.
Revenue rose 11 percent to $39.99 billion in the quarter that ended March 31. GM’s adjusted earnings before interest and taxes fell 6 percent to $3.8 billion as its North America pretax profit rose 14 percent to $3.6 billion.
GM said it was raising its full-year guidance for adjusted EBIT by $500 million, to a range of $11 billion to $13 billion. After accounting for about $900 million in buyout payments to employees and $99 million for Buick dealers who voluntarily gave up their franchise, the company reduced its 2023 net income forecast to a range of $8.4 billion to $9.9 billion, from its previous outlook of $8.7 billion to $10.1 billion.
“Once again, we delivered strong earnings thanks to healthy customer demand for our vehicles, our intense focus on operational excellence, and great teamwork between GM, our dealers, our suppliers and our unions,” GM CEO Mary Barra said in a letter to shareholders.
CFO Paul Jacobson said this month that more details about the automaker’s progress toward its goal of achieving $2 billion in cost reductions over the next two years would be shared on its first-quarter earnings call. Jacobson has said GM believes it will reach the higher end of its goal of 30 to 50 percent of its $2 billion cost target this year after about 5,000 salaried employees opted to leave the company through voluntary buyouts.
This story will be updated.
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