GM’s Earnings Drop One-Third

DETROIT — General Motors Corp. earned $1.07 billion in the first quarter of 1985, the world’s largest auto maker said today, a one-third decline from the same period a year ago when GM made $1.61 billion, a company record for any quarter.

The company earned $3.26 per share in the first quarter this year, compared with $5.11 in the 1984 quarter. With its car sales down 3.7% from a year ago, GM’s profit margin fell significantly, to 4.4% from 7.1%.