For the short sighted citizens who would have preferred a further hit on our manufacturing base irrespective of the economic carnage it would have inflicted on millions of Americans, this is poetic justice.
By Chris Isidore, senior writerMay 17, 2010: 2:28 PM ET
NEW YORK (CNNMoney.com) — General Motors returned to profitability in the first three months of the year, the automaker reported Monday. It was GM’s first profit since 2007.
GM, which emerged from bankruptcy last July, earned $865 million on revenue of $31.5 billion. A year ago, GM’s predecessor company lost nearly $6 billion on revenue of only $22.4 billion, as sales plunged and the company hurtled toward bankruptcy.
GM had reported losses the two previous quarters since emerging from bankruptcy. But the profit in the first quarter was expected.
The company was able to cut costs as part of its bankruptcy reorganization. Sales have also improved due to an improving U.S. economy and problems at Toyota Motor (TM).
Worldwide vehicle sales jumped 24% to 1.9 million vehicles, as sales in the U.S. rose 15% and sales in China surged 71%. GM also had free cash flow of $991 million in the period, leaving it with $35.7 billion in cash on hand.
"We’re pleased with our first-quarter performance, in particular achieving profitability," said chief financial officer Chris Liddell in the company’s statement. "We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet."
Meeting with reporters in Detroit, Liddell said he was reasonably confident that GM would be profitable for the full year.
GM returns to black with $865 million first quarter profit – May. 17, 2010