GM posts first quarterly profit in three years

General Motors Co. rode expense cuts from its bankruptcy and strong sales of redesigned models to its first quarterly net income in nearly three years, drawing the company closer to a stock offering that would repay at least part of its government aid.

The Detroit automaker said it made money because debt and other expenses were slashed by its stay in bankruptcy court, and because of strong new-model sales. It also generated higher revenue from growth in Asia and South America.

GM reported net income of $865 million, or $1.66 per share, in the first quarter. That compared with a loss of $6 billion loss, or $9.78 per share, a year earlier, as it skidded into bankruptcy protection. First-quarter revenue soared 40 percent to $31.5 billion.

New models such as the Chevrolet Equinox small sport utility vehicle and the Buick LaCrosse luxury sedan lifted GM’s North American operations to a $1.2 billion profit, compared with a $3.4 billion loss in the year-earlier quarter. North America had been a continual drain on GM’s profits before its bankruptcy filing last year.

Chief Financial Officer Chris Liddell said it may be difficult to sustain the same level of profit for the remainder of the year because first-quarter production is usually higher than other quarters, with automakers ramping up for the s pring selling season.

“I’d still be reasonably cautious about the rest of the year,” he said.

CEO Ed Whitacre has predicted a full-year profit as U.S. auto sales continue their slow recovery. That could lead to a public stock offering late in the year and full repayment of the $50 billion in U.S. government aid that stopped GM from going under last year. The U.S. government now owns 61 percent of the company.

Liddell said the company hasn’t committed to any date for a public stock offering. GM has said, however, that it hopes to make an initial public stock offering late this year.

GM has lost more than $86 billion since 2005, even though it had a few profitable quarters along the way. Before heading into bankruptcy protection last year it had almost $53 billion in debt, but it ended last quarter at $14 billion. GM paid $5.8 billion to the U.S. and Canadian governments in April, reducing its debt further to $8.4 billion.

The automaker has repaid a total of $6.7 million to the U.S. government, and the Obama administration hopes to get the remaining $43 billion by selling its 61 percent stake in the country’s largest automaker.

The remaining balance on the government aid tab isn’t considered debt since it was converted to equity in the company.