DETROIT -- General Motors Corp. today reported earnings of $1.3 billion, or $2.25 per diluted share of GM common stock, in the first quarter of 2004. These results represent an increase of 24% from the year-ago period, when GM earned $1 billion, or $1.84 per share, from continuing operations and before special items. Revenue rose 3.1% to $47.8 billion.The year-ago results exclude a gain of $505 million, or 90 cents per share, from the sale of GM Defense, and Hughes Electronics, which was split off from GM in late 2003 and is now reported for 2003 as a discontinued operation. "Our financial results in the first quarter reflect continued progress," says GM Chairman and Chief Executive Officer Rick Wagoner. "General Motors Acceptance Corp. had yet another record quarter, and our automotive operations, led by very strong results at GM Asia Pacific, reported a 12% increase in earnings. GM continues to improve in key areas such as productivity and quality. Even more important, our many new products around the world are being well received. But we still have more work to do to improve our profitability, as we face a challenging competitive environment, continuing high health-care costs and the effects of the artificially weakened Japanese yen."GM's global automotive earnings increased 12% in the first quarter to $611 million from $546 million in the prior-year period, despite lower production levels in North America and Europe. The increase was driven by improved results in the GM Latin America/Africa/Mid-East and Asia Pacific regions, offset by lower earnings in North America and higher losses in Europe. GM's global market share increased in the first quarter of 2004 to 13.7% from 13.6% in the year-ago period, with three out of four regions gaining share.GM North America earned $451 million in the first quarter compared with $548 million in the first quarter of 2003, principally reflecting a tough pricing environment, lower production volumes, and continued high pretax health-care costs of approximately $1.5 billion per quarter. GM's market share in North America rose to 26.4% in the first quarter of 2004, from 26.1% in the year-earlier period. "The automotive market in North America remains very competitive, and our results reflect that," Wagoner comments. "We're pleased with our new vehicles and our progress in rebuilding many of our brands, such as Cadillac and Chevrolet. But improving market share and profitability remain an important priority."GM Europe reported a loss of $116 million in the first quarter of 2004 compared with a loss of $65 million in the year-ago quarter, reflecting continued pricing pressure, higher foreign-exchange losses and launch costs for the new Opel Astra. GM's market share in Europe declined slightly to 9.5% from 9.6% in the year-ago period. "Our first-quarter financial results in Europe were below expectations," Wagoner says. "Going forward, we expect to see improved results through the balance of the year as we ramp up production of the new Astra, which has been well received."GM Asia Pacific earned $275 million in the first quarter, up from $75 million in the year-ago quarter. Continued strong performance by Shanghai GM in China, Holden in Australia, smaller losses at GM-Daewoo Auto & Technology Co. and improved results from GM's equity alliances in Japan contributed to GMAP's overall performance. GM's market share in the Asia Pacific region rose to 4.7% from 4.3 % a year ago, led by gains in China and India.GM Latin America/Africa/Mid-East earned $1 million in the first quarter of 2004, an improvement from the year-ago loss of $12 million. Higher production volumes and improved results in Venezuela and South Africa offset continued losses in Brazil. GM's market share in the GMLAAM region rose to 17.1% in the first quarter of 2004 from 15.7% a year ago.General Motors Acceptance Corp. reported record first-quarter earnings of $786 million, up from $699 million a year ago, as increased profitability in GMAC's financing and insurance operations offset moderating earnings at its mortgage unit. Both GMAC's North American and international financing operations posted strong performances with combined earnings of $442 million in the quarter, up $140 million from a year ago, reflecting lower credit-loss provisions and improved off-lease remarketing results. First quarter earnings at the insurance group were $91 million, up $65 million from a year ago, due to continued growth in underwriting income and improved investment-portfolio performance. Earnings at the mortgage group totaled $253 million, down from last year's record earnings of $371 million; this was a result of lower mortgage-origination volume versus the prior year and decreased pricing margins resulting from reduced mortgage-refinancing activity."GMAC remains a critical contributor to GM's business and financial results," Wagoner says. "The benefit of GMAC's balanced business portfolio was clear in the first quarter, as increased profitability in its financing and insurance sectors more than offset lower profits in its mortgage activities."Looking ahead, GM continues to expect improved economic conditions in the United States in 2004, resulting in total U.S. industry vehicle sales of approximately 17.3 million units. GM is increasing its 2004 calendar year earnings estimate to approximately $7 per share, excluding special items and at current dilution levels. This compares with the previous target of $6 to $6.50 per share and represents a further step toward GM's mid-decade target of earning at least $10 per share.For the second quarter of 2004, GM expects to earn approximately $2 to $2.25 per share, excluding special items."