UPDATE 5-GM posts lower profit after recall; outlook for rest of year trimmed

Thu Apr 24, 2014 2:01pm EDT
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* CFO says outlook for rest of year will have to be cut

* GM sees strong pricing in N America for pickup trucks

* Recall overshadows stronger-than-expected earnings

* GM shares down 1.3 percent (Adds CFO and analyst comments, updates stock price)

By Ben Klayman and Bernie Woodall

DETROIT, April 24 (Reuters) - General Motors Co's first-quarter profit tumbled 88 percent on Thursday due to the massive recall for defective ignition switches, and shares fell 1.3 percent after the company said expectations for the rest of the year must be trimmed.

While the company's results topped expectations on strong pricing for its redesigned pickup trucks in North America, it did not raise its full-year outlook by a corresponding amount.

GM said in January its 2014 earnings would finish slightly higher. While leaving the outlook for the full year unchanged on Thursday, Chief Financial Officer Chuck Stevens said the stronger first quarter means the outlook for the rest of the year will have to come down.

"We've changed the shape of the curve," he told analysts on a conference call. "We performed better than we expected in the first quarter, so we'll have to trim some of the expectations Q2 through Q4."   Continued...