• Nov 10th 2010 at 9:29AM
  • 37
General Motors posted its last financial report before the company's initial public offering of stock next week. In it, the company reported that in the third quarter of 2010, it earned a net income of $1.96 billion on a total of $34.06 billion in revenue. That puts the automaker's 2010 figures at $4.16 billion of net income on $98.17 billion in revenue, though GM does say that it expects earnings to fall in the fourth quarter thanks to costs associated with developing new vehicles and launching products like the Chevrolet Volt and Cruze.
The GM numbers put the company ahead of both Ford, which posted a third-quarter profit of $1.7 billion and Chrysler, which recently announced a net loss of $84 million for the same time period.

GM has seen sales climb by six percent so far this year, even while losing around 11 percent of its market share thanks to the sale or demise of brands like Hummer, Saab, Pontiac and Saturn. Hit the jump for the full press release.

[Sources: Automotive News, GM]
Show full PR text
GM achieves third consecutive quarter of profitability and positive cash flow

Net income of $2.0 billion, earnings per share of $1.20

DETROIT, Mich. – General Motors Company today announced that for the third quarter ending September 30, 2010, the company generated:

Revenue of $34.1 billion
Net income attributable to common stockholders of $2.0 billion
Earnings per share on a fully diluted basis and adjusted for 3-1 stock split of $1.20
Earnings before interest and tax (EBIT) of $2.3 billion
Net cash flow from operating activities of $2.6 billion
Free cash flow of $1.4 billion
"As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress," said Chris Liddell, vice chairman and chief financial officer.

GM North America had EBIT in the third quarter 2010 of $2.1 billion, up from $1.6 billion in the second quarter. GM Europe had a loss before interest and taxes of $0.6 billion, down from a loss of $0.2 billion in the second quarter. GM International Operations posted EBIT of $0.6 billion, down from $0.7 billion in the second quarter.

Net cash flow from operating activities was $2.6 billion and after adjusting for capital expenditures of $1.2 billion, free cash flow was $1.4 billion.

GM expects to also report positive EBIT for the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, and profitable year-end results for calendar year 2010.

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    • 1 Second Ago
      • 4 Years Ago
      What a joke. GM is making profits on cars only without considering the humongous debt to taxpayers, as we are subsidizing over $12k of every GM vehicle sold. And let's not even mention all the lawsuits still swirling around out there. "Old" GM (now liquidation motors) bondholders (who rightly should be paid off before the first cent of profit is declared), unfair value appraisals of shuttered plants, etc etc. - this company is still in very DEEP doo-doo, and any investor who thinks otherwise is a barrel-proof fool.
      • 4 Years Ago
      I am sorry I didn't have a clue...I only lost my job due to outsourcing and currently work at a GM dealership and I am at the mercy of supply and demand. I do however have a very serious question for you seeing you must be a knowledgable guy...do you think they outsourced your job because they wanted to ...or do you think it could have been done because it was just too costly to do here in the US....probably because the market for domestics is down due to the economy but also the perception that domestics are junk? I am sorry but I dissagree with your statement that your job has nothing to do with supply and demand or what I was more referring to is brand demand. The price of cars keeps going up and people's pay isn't increasing..to stay viable they have to look at other options...welcome to the real world of Walmart...and if it keeps up like this we all will be working at an $8 an hour job living in a shack.
      Montclair Attorney
      • 3 Years Ago
      Good for GM, they were on the ropes but they bounced back. If you ever get caught driving a GM vehicle while under the influence and you're in the Montclair area, go here: http://www.bestmontclairlawyers.com/ and talk to Montclair's best criminal attorneys.We handle DUi defense cases on a regular basis, so call now.
      • 4 Years Ago
      I would think any company that had most of its liabilites wiped off the books could make a profit. I wonder how they will do next year.
        • 4 Years Ago
        GM cooked the books, curtailed paying expenses and delayed planned outlays in Q3... just to make the numbers "look" good for the IPO. GM has already stated going forward the numbers will NOT be as strong, even though the car market is picking up steam...!!

        NO.. I will NOT be buying any GM stock... I own thousands of shares of Ford (F) at $1.50 and I'm holding them (tax-free) in my Roth IRA... you should too! If Ford deserves the same P/E as Toyota (TM), then Ford is a "double" in the near future... $30+!
        • 4 Years Ago
        • 4 Years Ago
        well 2 things of note..

        Since they gave the govt so much equity they are in an artificially good position since they do not have a bulk of interest payments for the auto loans (like chrysler who is paying between 14 and 20% interest back to taxpayers.

        since they paid back some of their loans with government money they are in an artificially good position.

        This of course is at the expense of the taxpayer. Gm literally made out like thieves.

      • 4 Years Ago
      Don’t let all this good news about GM make you forget what really happened. Thousands of careers were destroyed by job cuts and many were forced into retirement. We are not sharing in the results and financial gain, but made them possible. Many of the products we worked on are yet to reach the market. I am proud of the 25 years I served GM, but I will never forgive them for leaving so many of us behind. I hope to land a job with another automotive firm soon, and work hard every day to compete with my former employer.
        • 4 Years Ago
        How do you feel you are entitled to a job anywhere? GM dint destroy your job...the American public did. I don't understand your reasoning...supply and demand will dictate how your job is secured....don't blame where you work.
        • 4 Years Ago
        To those who don’t have a clue. I earned my position through performance, dedication, and nearly 20 promotions. In most companies, job security comes from competency and loyalty. My job and others did not go away due to supply/demand, they are still designing and engineering future vehicles. GM threw us aside to replace us with low cost Chinese, Korean, and Indian employees. If you didn’t know, GM is building an all-new Tech Center in China. So, hold off on opinion and welcome to the truth about new GM.
      • 4 Years Ago
      Good news is good.
      Retirement Planning
      • 3 Years Ago
      For Retirement Planning Florida you need only look here http://www.retirementplanningbocaraton.com. They've got the answers to the tough questions regarding estate planning, wills, trusts and more. This is a law firm with the wealth of knowledge needed to help you!
      • 4 Years Ago
      Bush started the process and Obama followed through. They both deserve the credit or blame, depending on which side of the political fence you sit.

      I think saving GM and Chrysler and the many companies that serve all three of the US automakers was critical for the auto industry. I think this also made Ford's rebound possible and this is supported by numerous non-partisan studies.

      But go ahead and hate if it makes you feel safe.
        • 4 Years Ago
        Critics of the auto bailout fail to acknowledge how painful it would have been if it hadn't gone ahead.

        What the government basically did for GM was to segregate all its liabilities and jettison them through the bankruptcy process. Essentially, they recognized the company still had value, and they concentrated all that "goodness" into New GM.

        So, what if that hadn't happened? Let's say GM and Chrysler both collapsed, their factories completely shuttered and workers all unemployed. As well, there would have been millions more jobs at risk with suppliers and dealerships. Okay, again, fair enough. That's the way the free market should work, right?

        So, that done, there would be assets to dispose of. And even in the crappy shape they were in, both Chrysler and GM had serviceable production facilities, R & D facilities, and, maybe most important, a TON of intellectual property, both for existing products and ones under development.

        That all goes up for sale, to the highest bidder. Of course it wouldn't all be tied up in one big bundle, there'd be thousands of auctions. So, who's got the most money these days? And is highly motivated to gain market share and production capacity in North America?

        My argument in favor of the auto bailout is simple: the Chinese would have been virtually handed 30% of the US car market, virtually overnight.

        Now, again, that's the way the free market works, right?
      • 4 Years Ago
      Good timing
        • 4 Years Ago
        If GM weren't making profit, it wouldn't make sense to go IPO to repay the Feds, would it?
        • 4 Years Ago
        John, I agree. I doubt they'd have scheduled the IPO unless they knew the balance sheet would look good.
        • 4 Years Ago
        In a sustained 11.5 Million unit year GM pulled off $2 billion Profits for Q3, $1.3B in Q2, and damn near $1 B in Q1.. that's $4.3 Billion this year with only $5.4 Billion in debt. Even more interesting is that the true saving per vehicle won't even kick in with GM/Chrysler until next year.

        At the current rate... GM could finish the year with $7 Billion in profits. Next year they could raise that by 60%-70% with a combination of less labor costs and increased industry sales volume. For the challenged.. and U kno who I'm talking to... that's $11 to 12 Billion

        Take at look at their financial statement and U will see that a company that makes a profit of $2 Billion in one quarter... damn near as much as the previous two quarters before while maintaining above $30 Billion in the bank, with only $5.4 billion in debt, with no major repayment deadlines until 2015 is a DAMN SAFE investment.
      • 4 Years Ago
      President Obama saved the American auto industry.
        • 4 Years Ago
        He (and Bush) also saved thousands of salaried jobs. But, I can understand union haters not wanted to point that little fact out...

        @High Climber
        Right. Because it doesn't matter if "Odummy" followed the line or put a halt to it and let GM/Chrysler fail, people like you would still find reasons to despise him.
        • 4 Years Ago
        I thought it was all Bush's fault?
      Wood Signs
      • 3 Years Ago
      At least someone is making money, maybe Detroit can make a comeback? How exciting, I would love to own that volt!
      • 4 Years Ago
      The surprising thing is that they are about as profitable as Ford is. 34 bn in revenue and 2bn in profit is right where Ford is, percentage wise. And remember, GM is making these profits WITHOUT a captive finance arm, which they just acquired.

      If we even get to 13 million SAAR GM will be gushing tax free profits. It will be even better once they get Opel under control.

      I really think GM is just going to be printing money for the next few years.
        • 4 Years Ago

        Ok, GM, who has has no debt or interest payments, barely made more money than Ford who has more debt (not to mention interest payments on that debt) than cash on hand.

        Nothing to brag about.
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