Daewoo Motor, the bankrupt South Korean car maker, has announced an operating profit for the first three months of its financial year.

It said it earned 16bn won ($12.5m) before interest and taxes compared with a loss of 46.4bn won in the corresponding period of the previous year.

"We cut around one trillion won in costs after our staff shrank by 7,300 workers," said spokesman Kim Jong-do.

The company has recently agreed a deal with General Motors under which the US car giant will take over key Daewoo assets for $251m in cash.

GM has taken a 42.1% stake in a joint venture with Daewoo's creditors, who will hold 33% with the other 24.9% going to GM partners.

Daewoo was South Korea's third largest car maker in terms of sales last year but its market share has now fallen to about 10% - less than half its 1998 peak - as consumer confidence drained away in light of the financial troubles and drawn-out negotiations with GM.