GM Q1 earnings: Employee, dealer buyouts push net income down 19%; full-year guidance up

General Motors on Tuesday reported lower first-quarter net income after making buyout payments to thousands of salaried employees and some Buick dealers, but the automaker raised its earnings forecast for the year, citing strong demand.

GM said net income declined 19 percent in the quarter to $2.4 billion. Its profit was reduced by $875 million for employee buyouts and a $99 million charge to an unspecified number of Buick dealers who are giving up their franchise as the brand shifts to a fully electric lineup later this decade.

First-quarter adjusted earnings before interest and taxes fell 6 percent to $3.8 billion. Global revenue rose 11 percent to $39.99 billion.

In North America, pretax profit rose 14 percent to $3.6 billion. Revenue for the region rose 12 percent to $32.9 billion, which GM said is a first-quarter record.