GM Q1 Earnings Plunge on Europe Troubles

General Motors' earnings fell by nearly two-thirds in the first quarter as the company's European operations racked up losses due to the eurozone crisis, the company said Thursday.

Net income fell to $1.35 billion from $3.42 billion a year earlier, after the company lost $300 million in its European operations.

Basic earnings per share sank to 64 cents from $2.09, or 60 cents on a diluted basis.

General Motors (IW 500: 5) said its key U.S. and China markets remained strong, with global vehicle deliveries rising by about 100,000 units to 2.3 million in the period to March 31.

The company set a sales record in China in the quarter, said GM CEO Dan Akerson.

But other areas, especially Europe, held growth back.

"New products are starting to make a difference in South America, but Europe remains a work in progress," said Akerson.

Revenues were higher -- $37.8 billion compare to $36.2 billion.

In the North American market, GM said earnings were up about 30% to $1.7 billion.

Despite an 8% fall in U.S. sales in April -- not covered by the newest earnings report -- GM raised its annual forecast for the total U.S. market, including itself and other automakers, by 500,000 vehicles to between 14 million and 14.5 million vehicles.

Copyright Agence France-Presse, 2012