GM reported Q1 earnings that beat analysts' expectations.
The Covid-19 outbreak cut deeply into GM's performance, costing the largest U.S. automaker $1.4 billion on a pretax basis during the first three months of the year. Of the top U.S.-based automakers, GM has the biggest operations in China where the pandemic originated in late December and shuttered factories beginning in late January.
GM's earnings showed some of that strain already with net profit sliding 86.7% from $2.2 billion during the same three months last year. On an adjusted basis, its pretax profit for the first quarter was $1.3 billion, down 45.9% from $2.3 billion a year ago. Revenue also slipped, but not as much. It fell 6.2% to $32.7 billion in the quarter, down from $34.9 billion a year ago.
The company burned through $903 million in cash during the quarter, a number analysts and investors are closely tracking. Suryadevara declined to comment specifically to CNBC on its projected cash burn, citing the automaker had $33.4 billion in automotive liquidity to end the first quarter.on May 18 in the U.S. and Canada under extensive safety measures.
GM said at the end of March that it had about $32 billion in available cash, including $16 billion from its revolving credit facilities. The company last month signed a 364-day revolving credit agreement of $1.95 billion for exclusive use by GM Financial, the company's auto lending arm.
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