GM posts lower profit after recall; core outlook on target

Credit: Reuters/Rebecca Cook

The sign to a Chevrolet automobile dealership is seen down the street from General Motors World Headquarters on Jefferson Avenue in Detroit, Michigan April 2, 2014.

Net income in the first quarter fell to $108 million, or 6 cents a share, from $873 million, or 58 cents a share, in the year-earlier period. The most recent quarter included recall costs of $1.3 billion, or 48 cents a share.

Excluding a charge mostly for the devaluation of the Venezuelan currency, GM earned 29 cents a share, far better than the 4 cents analysts expected, according to a poll by Thomson Reuters I/B/E/S.

Some GM ignition switches can make vehicle engines stall while operating, stop airbags from deploying, and power steering and power brakes from operating. The company is under investigation by U.S. safety regulators, Congress and the U.S. Department of Justice over its failure to detect the faulty part for more than a decade.

(Reporting by Ben Klayman and Bernie Woodall in Detroit; Editing by Jeffrey Benkoe)