General Motors (NYSE: GM) efforts to retool its factories for hot-selling trucks caused first-quarter earnings and revenue to drop compared with last year, but strong crossover sales still helped the company beat analysts' expectations.
In both the U.S. and China, sales of new crossovers doubled over the same quarter in 2017, the company said Thursday.
Earnings came in at $1.43 per share, adjusted vs. $1.24 per share forecast.
Revenue was $36.1 billion vs. $34.66 billion forecast, down 3.1% from the prior-year.
However, net income tumbled to $1.05 billion, or 77 cents per share, from $2.61 billion, or $1.75 per share, a year ago, hurt by a $900 million charge to restructure its business in South Korea.
GM reached a deal with a Korean labor union on Thursday that will allow the automaker to remain in the country and save the company $400-$500 million per year in costs, CFO Chuck Stevens said on a call with reporters.
The automaker also reached a preliminary deal with a state-owned Korean bank to secure $750 million in funding.
GM delivered 715,794 vehicles in the U.S. during the first quarter, up 4% and ahead of an estimated industry increase of about 2%.
Shares in the automobile giant dipped 83 cents, or 2.2%, within a 52-week trading range of $31.92 to $46.76.
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