The Tide is Turning: GM Expects Q4 2006 Profit, Delays Earnings
GM expects to turn a profit for Q4 2006 and is again restating its earnings for 2002-2006. It seemed just only yesterday when every analyst and armchair CEO had dire of predictions for GM. CEO Rick Wagoner's head was called for and bankruptcy pools were going around the offices. Things picked up in 2006 with the introduction of the GMT900 SUVs and pickups, and it looks like the corner may about to be dramatically turned with new product like Malibu, Enclave, Astra and CTS on the way. The news of the General turning a quarterly profit isn't all that surprising, but what's crazy is the latest earnings restatement.
If it seems like it's been happening a lot, well, it's because it has. Seven out of the last eight quarters have been accompanied by earnings restatements, which casts doubt upon any of GM's earnings statements, good or bad. One day we may wake up and hear that 2005 really was just a bad dream for GM and that they actually turned a profit. We kid. GM's now looking to share earnings results the week of February 5th.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
dan spalinger 11:17AM (1/26/2007)
Wanna bet that GM's profit comes on the back of the income derived NOT from the actual sale of vehicles and that North American operations still hemoraged huge amounts of money?? I don't know about you but I sure haven't seen many new Suburbans, Tahoes, Silverados and the like on the road...I think someones been inhaling too many fumes in the paint factory....
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sk 11:43AM (1/26/2007)
What are you talking about no new Suburbans, Tahoes, Silverados and the like on the road...
Certainly not in Michigan the new GMT900 SUVs dominate this class.
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jordan 1:51PM (1/28/2007)
I'm not a big fan of any sort of "earnings restatements." You should file your statement and that should be it. What's that? You *found* some income that wasn't stated? Sounds like your accounting department didn't actually do their jobs. BAM, audit time. I don't care if you have a huge company and can't keep track of everything, that's why you have an insanely-large accounting department. I work for a not-to-be-named manufacturing company, and let's just say we're #1 in the world in what we do. In the 5+ years I've been there, I have yet to hear about any sort of "earnings restatement." I hear about the accounting department getting chewed out all the time for mistakes, but they get everything clean before anything FINAL goes out. We've had to deal with SOx for the past few years, hasn't GM? I remember them kicking every department into shape and making sure that everything was being reported correctly to accounting (as well as everywhere else).
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porker 11:47AM (1/26/2007)
So-- What's wrong with restating your earnings whenever there is a change necessary due to updated reports?
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tikirob 11:57AM (1/26/2007)
I think GM has done a fare job putting out new product that is worth looking at. Even the interiors are better. I can see why they would start making profit. Ford on the other hand needs to do this a lot quicker than they are.
Rob
http://www.autoshortlist.com
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RJ 12:46PM (1/26/2007)
Man and if theyd bring over the holden caprice and statesman and add some buick velite front ends they would have buick up and running again.
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greg curran 1:04PM (1/26/2007)
The 900 Suv's Are selling well. In the month of December alone 4800+ sales over Dec 05.
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RevRick 1:34PM (1/26/2007)
The 900's have been a big seller, several of my neighbors traded their old Tahoe's and really like their new SUV's. Mind you they do use more gas than a car but for a family of five that likes the road there is nothing comes close.
GM management should be commended for their efforts in turning the corporation around, along with the workers. America's Auto Company is alive and well, I just hope Ford can get a grasp of their troubles and do the same. I for one would hate to see this country lose the biggest industrial job producers we have, without them this country will not be as strong in so many ways.
Way to go GM, I'm pulling for you, and if you want to replace my old van, well I'd be pulling for that too.
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tsk 1:34PM (1/26/2007)
In my area, the GMT900's are EVERYWHERE. Way to go GM! I'm so happy for the turnaround. I wish for Ford to do the same.
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dis_guy 1:49PM (1/26/2007)
Here in the Texas Panhandle, There were a lot of 900s when they initially came out. You saw them everywhere. Now not so much, but they are still more common than the new expeditions.
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Lithous 2:17PM (1/26/2007)
"Wanna bet that GM's profit comes on the back of the income derived NOT from the actual sale of vehicles and that North American operations still hemoraged huge amounts of money??"
Wanna bet that in the past GM lost a lot of its profit (or potential profit) from things other than car sales (like still paying healthcare for people who haven't worked for them in decades and pension and etc.)?
Of course the import fanboys don't care about those extraneous things when those things bring the profits down, at that point they are considered inconsequential but when some extraneous things help bring profit we all see these things become so important.
We really need a site that tells the real truth about automobiles... Oh yeah, we do, wait... no we don't.
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CF 2:28PM (1/26/2007)
Part of the problem is that shareholders are so skittish. Any little glimmer of hope that GM can give them might just keep them from selling their shares. It's unfortunate that GM has to expend so much energy on stuff like this, but it's the way business goes these days.
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whofan 9:28PM (1/26/2007)
This is good news. I hope Ford can turn this corner soon too.
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ritchie 4:24PM (1/27/2007)
GM is back and you know it,as proof their cars and trucks are more exciting than any other car company right now.
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