General Motors Posts 2011 Q1 Profit of $3.2 Billion. Results Almost Doubled by One Time Sales of Ally and Delphi Preferred

GM stock is currently selling at under $32 a share, below the initial IPO price of $33 last November, bad news for U.S. and Canadian taxpayers who still hold 41% of General Motors.

General Motors Company (NYSE: GM) today announced Q1 profit of $3.2 billion, or $1.77 per fully-diluted share, marking the company’s fifth consecutive profitable quarter since it emerged from bankruptcy in 2009.  Revenue increased $4.7 billion to $36.2 billion, compared with the first quarter of 2010.

The General Motors results were not as strong as they appear at first glance because special items increased profits by $1.5 billion or $0.82 per fully-diluted share. GM stock is currently selling at under $32 a share, below the initial IPO price of $33 last November,  bad news for U.S.  and Canadian taxpayers who still hold 41% of General Motors. It’s estimated that the stock must trade at about$50 a share for taxpayers to get all of their money back.

Earnings before interest and tax (EBIT) were $3.5 billion.  EBIT adjusted to exclude special items was $2.0 billion compared with $1.7 billion in the first quarter of 2010. Virtually all of the profits came from increased sales in North America before huge fuel price rises caused a slump in profitable large truck and SUV sales, the effects of which won’t be known until Q2 results are released.

“We have a lot of work to do to leverage our scale,” said Dan Akerson, chairman and CEO during an earnings briefing for analysts that reporters were allowed to listen to without asking questions.