• Aug 12, 2010
General Motors reported its second straight quarter of profitability this morning, something it hasn't done in many years. In fact, the first half of 2010 has been the automaker's best since 2004. In the April–June quarter, GM earned net profits of $1.3 billion on revenues of $33.2 billion. That works out to a fairly healthy $2.55 per share in earnings and follows up the first quarter nicely when the company earned $31.5 billion in revenue and $865 million in net profit. GM also managed to add $2.8 billion in cash to its coffers during the quarter, bringing its account balance up to $32.5 billion.

Overall, the General earned $2.0 billion before interest and taxes (EBIT), up from $1.8 billion in the first quarter. Accounting for most of that was the automaker's North American operations, which earned $1.6 billion before interest and taxes. GM Europe lost $0.2 billion before interest and taxes, but that's an improvement over the $500 million loss in the first three months of the year. Finally, GM's International Operations added $0.7 billion in earning before interest and taxes.

Credit for GM's performance goes to the recovering automotive market in the U.S. that has kept GM plants busy building popular models like the Chevrolet Equinox, GMC Terrain and Cadillac SRX triplets, as well as the international success of the Chevrolet Cruze and Buick's continued popularity in China.

The good financial news for GM has signaled to many analysts that the companies march towards an initial public offering (IPO) of its stock may start as soon as tomorrow with the filing of what's called an S-1 document with the Securities and Exchange Commission. Not many details are known about the filing, but the sale of GM stock to the public will likely be one of the largest IPOs in U.S. history and help reduce, if not totally eliminate, the U.S. government's 60-percent stake in the automaker.

[Source: General Motors, Automotive News - sub. req. | Image: Dave Chidley, AP Photo/The Canadian Press]
Show full PR text
GM Second Quarter 2010 Results Show Sustained Progress

2010-08-12

* GM achieves second consecutive quarter of profitability and positive cash flow
* Net income of $1.3 billion and EPS of $2.55, free cash flow of $2.8 billion


DETROIT, Mich. – General Motors Company today announced its second quarter 2010 results, marked by revenue of $33.2 billion and net income attributable to common stockholders of $1.3 billion, resulting in earnings per share on a diluted basis of $2.55. GM's second quarter earnings before interest and tax (EBIT) was $2.0 billion.

GM North America had EBIT in the second quarter 2010 of $1.6 billion, up from $1.2 billion in the first quarter. GM Europe had a loss before interest and taxes of $0.2 billion, an improvement of $0.3 billion from the first quarter. GM International Operations posted EBIT of $0.7 billion, down from $1.2 billion in the first quarter.

Cash flow from operating activities was $3.9 billion and after adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion. GM ended the second quarter with $32.5 billion in cash and marketable securities, including funds in the Canadian Health Care Trust escrow.

"I am pleased with our progress on achieving our business objectives," said Chris Liddell, vice chairman and chief financial officer. "We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit, and delivered two consecutive quarters of profitability and positive cash flow."


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 38 Comments
      • 4 Years Ago
      Way to go GM !!!!! I have, and always will be a GM customer. They are definetly on their way to recovery, and I expect them to regain their leadership. This should show every company what bad management can result in, does'nt matter how large a company, and how good of a product you build, poor management will destroy you !!
      • 4 Years Ago
      Fleet sales are to thank, not any [needed] sea change at GM. Won't last.
      • 4 Years Ago
      Good News for GM.
      • 4 Years Ago
      Excellent. The more profit now, the more there can be when the lineup is actually filled with needed product.
        • 4 Years Ago
        I'm not looking forward to flagship Cadillac Sedan at all... After looking at my bank account that is. Only makes me sigh

        Congrats GM btw.
        • 4 Years Ago
        Sweet. Maybe they can pay back more of their loans!!!!!!!!!!!
        • 4 Years Ago
        Sweet. Maybe they can pay back more of their loans!!!!!!!!!!!
        • 4 Years Ago
        After years of mediocre products I hope some of this profit will go toward new models.
        The last couple of years have been great in terms of product quality improvement, and that happened when GM was on the ropes, imagine what they can do when they actually have some money to work with.
        • 4 Years Ago
        YES!! I'm looking forward to a new RWD Cadillac flagship in the near future
        • 4 Years Ago
        Exactly, Buick and Cadillac or half their brand portfolio, don't even have full lineups yet. So what are the projections for GM retaking world's #1 automaker?
      • 4 Years Ago
      O.K. GM now that you made some money, pay your bills.
      • 4 Years Ago
      Take that, Rick Wagoner LOL
      • 4 Years Ago
      One step closer to that IPO is a good, good thing.
      • 4 Years Ago
      FOX NEWS FLASH

      "Obama is profiteering from the poor American people, who lost $1.3bn to his pet project in the 2nd quarter of 2010! Hockey moms unite!"
      • 4 Years Ago
      How long before the UAW starts picketing GM dealerships for their "givebacks"?
      • 4 Years Ago
      GM I never gave up on you since the whole crysis started, I'm soo happy that you are doing wel!!! Keep it up!!!
      • 4 Years Ago
      So you telling me all those UAW contracts were just choking the company and killing it along with the likes of Wagoner???????????


      Nooooooooooooooooooooooooo wayyyyyyyyyyyyyyyyyyyyyyyyyyyy

      No one knew that part.
        • 4 Years Ago
        As much as you apparently enjoy "sticking it" to Rick Wagoner, the troubles that sent GM down its nearly destructive path went far beyond his command...
      • 4 Years Ago
      Good news.
    • Load More Comments