GM 1Q profit dragged down by recalls

GM 2014 1st quarter earnings
In this April 23, 2014 file photo, a worker completes an Opel Adam car at the German car company Opel Eisenach GmbH, owned by General Motors, in Eisenach, Germany. General Motors reported quarterly earnings on Thursday, April 24, 2014. (AP Photo/Jens Meyer, File)

DETROIT (AP) – General Motors says its first-quarter profit fell 86 percent as a series of recalls dragged down earnings.

GM had a net profit of $125 million, the company’s worst quarterly performance since it posted a net loss after leaving bankruptcy protection in 2009.

The Detroit automaker says it took a $1.3 billion charge for recalling about 7 million vehicles worldwide. The company also incurred $300 million in restructuring costs, mostly in Europe.  And it took a $419 million charge due to a change in the way it values Venezuela’s currency.

GM recall continues to cause problems

GM made 6 cents per share, down from 58 cents per share a year ago.

Excluding one-time items, GM made 29 cents per share, far above Wall Street estimates of 3 cents per share.

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