(April 25, 2014) DETROIT — Surging transaction prices on trucks helped General Motors offset heavy costs from safety recalls and eke out a small profit in the first quarter. GM posted net income of $125 million in the first three months of the year, down 86 percent from a year earlier. The bottom line reflected $1.3 billion in recall-related expenses as well as about $200 million in restructuring costs in GM's European business.

The result for the January-March period was GM’s worst showing since the six-month period after its emergence from bankruptcy in 2009. But record-high transaction prices in North America helped it avoid the loss that many analysts had predicted and notch its 17th straight quarterly profit.

“The performance of our core operations was very strong this quarter, reflecting the positive response of customers to the new vehicles we are bringing to market,” said GM CEO Mary Barra. “Our focus remains on creating the world’s best vehicles with the highest levels of safety, quality and customer service, while aggressively addressing our business opportunities and challenges globally.”

Earnings before interest and tax (EBIT) adjusted was $0.5 billion and included the impact of a $1.3 billion pre-tax charge for recall-related costs and $0.3 billion in restructuring costs. This compares to the first quarter of 2013, when the company recorded EBIT-adjusted of $1.8 billion, which included a pre-tax charge of $0.1 billion for recalls and $0.1 billion in restructuring costs.

Net revenue in the first quarter of 2014 was $37.4 billion, compared to $36.9 billion in the first quarter of 2013.

Sources: General Motors, Automotive News