General Motors (GM)
General Motors (GM) wasn’t fazed by its massive ignition-switch recall in the first quarter after all, though the morning’s early exuberance in GM stock has worn off.
True, GM profit declined, but GM earnings delivered a massive earnings beat of 25 cents a share, according to a survey by Thomson Reuters. Strip out $1.3 billion in charges for the recall and GM’s core business looks like a finely tuned engine, generating operating income of $590 million. Revenue rose to $37.4 billion from $36.9 billion a year ago.
As beleaguered CEO Mary Barra said in a statement:
“The performance of our core operations was very strong this quarter, reflecting the positive response of customers to the new vehicles we are bringing to market.”