General Motors first-quarter earnings soar 34 percent

Driven by sales of profitable trucks and SUVs, strong performance in China and growth for GM Financial, General Motors Co.'s net income in the first quarter soared nearly 34 percent to a new record of 2.61 billion U.S. dollars, according to the company's financial statement released Friday.

The company said earnings per share totaled 1.70 dollars, well ahead of analyst calls for 1.48 dollars a share. The company earned 1.26 dollars a share in the quarter a year ago.

"Our first-quarter results reflect our resolve to grow profitably and demonstrate the strong earnings power of this company," said Chairman and CEO Mary Barra, in a press release.

Much of the company's profit was driven again by North America, where GM also had record first-quarter revenue of 29.3 billion dollars, an increase of 10.7 percent.

GM Chief Financial Officer Chuck Stevens said results were aided by 400 million dollars in favorable vehicle pricing and 500 million dollars in cost-trimming.

Sales volume also was up and GM built up inventory ahead of 10 weeks of combined plant downtime in the third quarter, Stevens said.

GM said in March it will sell its Opel and Vauxhall European brands, as well as its GM Financial European operations to French carmaker PSA Group.

The deal will allow GM to reduce its cash balance by 2 billion dollars, which it plans to use to accelerate share buybacks. Endit