GM profits rise in first quarter

General Motors said today first-quarter earnings before one-time items soared to $228 million thanks to strong gains from North…

General Motors said today first-quarter earnings before one-time items soared to $228 million thanks to strong gains from North American truck sales, but net profits were slightly lower after a restructuring charge at its European operations. The world's largest automaker raised its US sales outlook and earnings estimates for the year. Its shares were up $1.90 to $63 in early trade on the New York Stock Exchange.

GM took an after-tax charge of $407 million for job cuts and asset write-downs in Europe in the first quarter.

"Strong vehicle sales in North America coupled with cost reductions drove our profit improvements (before the charge)," GM chief executive Mr Rick Wagoner said in a statement.

"We know we must make significant progress in Europe, and we're working hard to make it happen," he added.

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Shares of GM have outperformed the shares of its closest rival, Ford, by about 50 per cent since the September 11th attacks on the United States.