Profits Up at 2 GM Units, but Financial Services Dip

General Motors Corp.’s data processing, defense-electronics and financial services subsidiaries announced first-quarter earnings Wednesday as the auto maker prepared to report its own financial results.

General Motors Acceptance Corp., the auto maker’s Detroit-based financial services arm, said earnings declined 24% from a year ago.

Earnings for the auto maker’s Electronic Data Systems Corp. rose 14% and GM Hughes Electronics Corp., based in Los Angeles, said earnings increased by 59%.

GM itself will report first-quarter earnings on Thursday.

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General Motors Acceptance Corp. earnings declined to $217 million, compared with $284 million. The first-quarter decline included a $7 million accounting charge related to benefit programs for former or inactive employees.

Chairman Robert T. O’Connell said the reduced income was due to lower asset levels and lower gains on asset sales, undertaken to maintain adequate cash to make loans to dealers and car buyers.

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Electronic Data Systems Corp. earnings rose to $171.7 million from $151.4 million. Earnings per share of GM Class E common stock were 36 cents, up from 32 cents.

Revenue rose to $2.24 billion from $2.07 billion.

Chairman Lester Alberthal said the Dallas-based data processing unit added new customers and penetrated new world markets during the period. He cited new contracts with companies that included Xerox Corp., Video Lottery Technologies and apparel manufacturer London Fog.

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GM Hughes Electronics Corp. said its earnings rose to $251.1 million from $158.3 million. First-quarter earnings included a $30.4 million accounting charge related to future benefits to former employees. Earnings per share of GM Class H common stock were 70 cents, up from 47 cents. Revenue rose to $3.6 billion from $3.2 billion.

The defense and electronics contractor showed gains in its three major operating areas: automotive electronics, telecommunications and space, and defense electronics.