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GM earnings jump
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April 14, 1997: 11:41 a.m. ET
Automaker posts earnings of $1.8 billion for first quarter of 1997
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NEW YORK (CNNfn) -- General Motors Corp. announced Monday that its earnings for the first quarter of 1997 rose to $1.8 billion from $800 million the same period of 1996.
However, much of that jump can be attributed to a strike at two Ohio auto parts plants last year which brought GM's operations to a standstill and resulted in a $900 million loss.
GM, the world's largest automaker, said the improved results would bring earnings of $2.30 per share, up from 93 cents per share in the strike-affected period on year earlier.
The strike in March, 1996 lasted 17 days at two brake plants in Dayton, Ohio, shutting down 26 of GM's 29 North American assembly plants and numerous components plants.
GM's North American operations recorded its best performance in 10 years, with a net income of $764 million in first quarter 1997 in comparison with its $279 million net loss in first quarter 1996.
The automaker's international operations did not fare as well. It reported a net income of $317 million first quarter of this year, down from a net income of $432 million in the period one year earlier. That included a $55 million after-tax gain related to an agreement with Volkswagen A.G.
Delphi Automotive Systems, the company's parts operation, posted earnings of $180 million compared to $79 million in the first quarter of 1996.
GM said its vehicle deliveries in the United States in the first quarter of 1997 totaled 1,123,000 units, which resulted in a 30.2-percent share of the market, compared with 1,152,000 units and a 31.2-percent market share in the first quarter of 1996.
General Motors shares (GM) rose 3/4 to 53-3/4 in early morning trading Monday on the New York Stock Exchange.
--Randy Schultz
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General Motors
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