Results from Europe hurt GM (NYSE: GM) sales in the latest quarter, hurting numbers as it did with Ford (NYSE: F) GM’s Opel division has been a problem for some time. The company is trying to cut jobs and factories, against objections from powerful unions and regional governments.
GM said that its earnings fell to $1 billion last quarter from $3.2 billion in the quarter a year ago. Revenue rose modestly to $37.8 billion to $36.2 billion.
GM Europe (GME) reported an EBIT-adjusted loss of $0.3 billion compared with break-even results in the first quarter of 2011.
The firm did a bit better in the US. GM North America (GMNA) reported EBIT-adjusted of $1.7 billion, including restructuring costs of $0.1 billion, an improvement of $0.4 billion compared with the first quarter of 2011.
GM has opened the door to one option in Europe. It has formed a joint venture with PSA Peugeot Citroen under which GM bought a 7% stake in the EU company, and agreed to combined factory operations.
Douglas A. McIntyre