Shares of General Motors Corp. enjoyed a lift on Wednesday when growth in emerging markets helped the automaker post a smaller-than-expected operating loss for the first quarter in the face of a downturn in the U.S. economy, a mortgage crisis at its partly owned finance arm and charges related to its support of a former parts arm's bankruptcy.
GM's net loss for the quarter totaled $3.25 billion, or $5.74 per share. That compares with a $62 million profit in the same quarter last year. But excluding special items, the automaker reported an adjusted loss of $350 million, or 62 cents per share.
That exceeded analysts' consensus expectations that the automaker would lose about $1.54 per share on an operating basis. The surprise buoyed GM's stock pricein intraday trading Wednesday. GM shares finished the day up 9.3 percent at $23.20.
"Auto headline results were better than we expected while GMAC was worse," analyst Jonathan Steinmetz wrote, explaining the stock market's response to GM's loss.
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GM's global automotive operations recorded a $68 million adjusted net gain for the quarter, despite an $812 million loss in North America. Growth in all of GM's other automotive divisions outpaced expectations.
"As we look at it, we certainly still have some issues we need to wrestle with" in North America, said GM President Fritz Henderson. "Outside of North America, when we look at emerging markets, the strategy is to take our foot, firmly affix it to the accelerator and jam it to the floor. We are growing quickly; we're growing profitably in the fastest-growing emerging markets."