General Motors 1Q profit falls to lowest level since 2009 as recall costs weigh on income
DETROIT – General Motors says first-quarter profit fell 86 per cent as a series of recalls dragged down its earnings.
GM had a net profit of $125 million, the company’s worst quarterly performance since it posted a net loss after leaving bankruptcy protection in 2009.
The Detroit automaker says it took a $1.3 billion charge for recalling about 7 million vehicles worldwide. The company also incurred $300 million in restructuring costs, mostly in Europe. And it took a $419 million charge due to a change in the way it values Venezuela’s currency.
GM made 6 cents per share, down from 58 cents per share a year ago.
Excluding one-time items, GM made 29 cents per share, far above Wall Street estimates of 3 cents per share.
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