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GM’s $2.94 billion first-quarter profit tops street views, but revenue misses | Economic news

By ALEX VEIGA, AP Business Writer

LOS ANGELES (AP) — General Motors’ net profit fell in the first quarter as the automaker sold fewer cars and trucks globally, although higher prices helped boost revenue, particularly in America. North.

GM on Tuesday evening reported net income of $2.94 billion, or $1.35 per share, compared with earnings of $3.02 billion, or $2.03 per share, in the same quarter last year .

Excluding one-time items, such as costs related to its self-driving vehicle subsidiary Cruise, GM’s earnings were $2.09 per share. The analyst consensus estimate was $1.65 per share, according to FactSet.

Revenue jumped nearly 11% to $35.98 billion, but fell below the $36.89 billion forecast by analysts.

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GM’s sales in the United States, its most profitable market, jumped 13.5% in the first quarter from a year earlier to $29.46 billion. GM sold 1.43 million vehicles in the quarter, compared to 1.75 million in the same period last year.

The company’s global market share increased from 8.1% to 7.3%.

CEO Mary Barra said in a conference call with reporters that demand for the company’s vehicles remains strong.

“What we see from GM’s perspective gives us confidence that we have the pricing power and that we have the customer demand for our products,” she said.

Global supply chain disruptions continue to make access to computer chips needed for auto manufacturing volatile, but GM saw improvement on that front in the first quarter, Barra said.

“We believe we will continue to see a larger supply of chips in the second half compared to the first half,” she said, adding, “We still believe we can gain 25% to 30% more vehicles this year than last year, even with what we see in the market today.

GM is betting on strong demand for electric vehicles. The company has several models in the works, including electric variants of the Chevy Blazer, Equinox, Silverado pickup and Corvette.

Earlier this month, GM announced it would co-develop “affordable” electric vehicles with Honda. One of the vehicles that will stem from that venture is a crossover that GM plans to sell below the Equinox electric variant, Barra said Tuesday.

GM’s stock rose 1.2% after the close after closing down 4.5%.

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