Detroit, MI, United States (AHN) – General Motors reported a $3.37 billion net income for the first quarter of 2011 on Thursday. It was a 15 percent increase compared to the previous year.
The profit translates into 95 cents per share, better than analysts’ forecast of 91 cents.
Despite the strong performance of the American car maker, investors were disappointed because of increased spending on sales incentives, marketing and engineering costs which reduced their benefits.
Investors were expecting more, but the company’s higher operating expenses reduced GM’s profit by $700 million even if North America sales grew to $2.82 billion. Engineering and marketing costs also went up by $200 million, while incentive spending rose by $300 million.
Despite these higher costs, it was the fifth consecutive profitable quarter for GM.
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May 6th, 2011 
davidguide 
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