General Motors (NYSE: GM) reported higher-than-expected first-quarter profits as the company shaved costs and sold more expensive trucks, SUVs and crossover vehicles.
Adjusted earnings were $1.41 compared to $1.11 per share forecast. Revenue was $34.9 billion, as opposed to $35.28 billion forecast
In April, the company reported sales that fell 7% from a year ago, but said that buyers were interested in its more expensive sport utility vehicles and pickup trucks. It plans to launch more full-size pickups in the second half of 2019, with two new heavy duty pickups from Chevrolet and GMC.
As part of its plan to adapt to changing market demands, GM has idled factories that produce slow-selling vehicles, consequently cutting more than 14,000 jobs at factories in the U.S. and Canada. The company is also shifting focus towards self-driving and electrified vehicles.
GM said in a statement it was "bullish" on pickup truck sales for the rest of 2019 as more versions of its new Silverado hit dealer showrooms and its heavy-duty trucks launch in the second half of the year.
GM reported a first-quarter net profit of $2.2 billion, or $1.48 per share, up from $1.05 billion, or 72 cents per share, a year earlier. Excluding one-items, the company reported earnings per share of $1.41.
GM's pre-tax earnings fell more than 11% to $2.3 billion from $2.6 billion.
GM has preferred shares in Peugeot from when it sold its German Opel unit to the French automaker in 2017. Lyft's (NASDAQ:LYFT) initial public offering was at the end of the first quarter.
Shares of GM have risen more than 6% over the last 12 months and are up more than 20% since the beginning of the year. The shares slid $1.08, or 2.7%, in early Tuesday trading to $38.93.
