General Motors has just announced the company's financial results for the first quarter of 2011. The automaker pulled in a net income of $3.2 billion, marking the fifth-consecutive profitable quarter for the largest of the Big Three. Compared to one year ago, GM saw revenue increase by $4.7 billion to $36.2 billion. Additionally, GM says that net income attributable to common shareholders increased by $1.9 billion thanks to the sale of its stake in Delphi Automotive and Ally Financial, though the company saw a $400 million goodwill impairment charge at GM Europe and a $100 million change in tax regulations tied to the manufacturer's joint venture in India. As a result, total net income attributable to common shareholders totaled out at $1.5 billion.

All said, earnings before interest and tax were $3.5 billion, though that number dropped to $2 billion once adjusted to include special items. During the same period last year, EBIT was $1.7 billion.

GM says that it expects to see numbers besting those of the first quarter throughout the remainder of 2011. Hit the jump for the full press blast.
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GM Reports Net Income of $3.2 Billion
2011-05-05

Net income of $1.77 per share including a net gain from special items of $0.82 per share

EBIT of $3.5 billion and EBIT-adjusted of $2.0 billion

GM Europe achieves breakeven results on an EBIT-adjusted basis

DETROIT – General Motors Company (NYSE: GM) today announced first quarter net income attributable to common stockholders of $3.2 billion, or $1.77 per fully-diluted share, marking the company's fifth consecutive profitable quarter. Revenue increased $4.7 billion to $36.2 billion, compared with the first quarter of 2010.

"We are on plan," said Dan Akerson, chairman and CEO. "GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth."

Net income attributable to common stockholders includes gains of $1.6 billion and $0.3 billion respectively related to the sales of the company's ownership interest in Delphi Automotive LLP and Ally Financial Inc. preferred stock. It also includes a $0.4 billion goodwill impairment charge at GM Europe (GME) resulting from a change in accounting standards and charges totaling $0.1 billion at GM International Operations (GMIO) related to revised tax regulations affecting the company's India joint venture. Combined, these special items increased net income attributable to common stockholders by $1.5 billion or $0.82 per fully-diluted share.

Earnings before interest and tax (EBIT) were $3.5 billion. EBIT adjusted to exclude special items was $2.0 billion compared with $1.7 billion in the first quarter of 2010.

GM Results Overview (in billions except for per share amounts)

Q1 2010
Q1 2011
Revenue
$31.5
$36.2
Net income attributable to common stockholders
$0.9
$3.2
Earnings per share (EPS) diluted
$0.55
$1.77



EBIT
$1.8
$3.5
Less special items
$0.1
$1.5
EBIT – adjusted
$1.7
$2.0
Impact of special items on EPS diluted
$0.08
$0.82



Automotive net cash flow from operating activities
$1.9
$(0.6)*
Automotive free cash flow
$1.0
$(1.9)*



* Includes $2.5 billion negative impact related to wholesale advance financing agreement termination
GM North America (GMNA) reported EBIT of $2.9 billion compared with $1.2 billion in the first quarter of 2010. On an EBIT-adjusted basis, GMNA increased its earnings by $0.1 billion to $1.3 billion compared with the first quarter of 2010. The company expects GMNA's quarterly EBIT-adjusted results to improve on average for the remainder of the year compared with the first quarter as better pricing and improved fixed cost should more than offset commodity cost increases and unfavorable mix.

GME reported EBIT of $(0.4) billion. GME's results improved by $0.6 billion on an EBIT-adjusted basis compared with the first quarter of 2010 and it achieved a significant milestone by delivering breakeven results on that basis. Based on current plans, GME is targeting to achieve breakeven results on an EBIT-adjusted basis before restructuring for the entire year.

GMIO reported EBIT of $0.5 billion compared with $0.9 billion in the first quarter of 2010. On an EBIT-adjusted basis, GMIO earned $0.6 billion in the first quarter, a decline of $0.3 billion compared with the first quarter of 2010.

GM South America (GMSA) reported EBIT of $0.1 billion, down $0.2 billion from the first quarter of 2010. There were no adjustments in either period.

GM expects that full-year 2011 EBIT-adjusted results will show solid improvement over 2010. GM continues to expect no material impact on full-year results from the Japan crisis.

For the quarter, automotive cash flow from operating activities was $(0.6) billion and automotive free cash flow was $(1.9) billion. Both figures include the $2.5 billion cash impact of GM's decision, announced in October 2010, to end a wholesale advance agreement with Ally Financial.

GM ended the quarter with very strong total liquidity of $36.5 billion. Automotive cash and marketable securities, including Canadian Health Care Trust restricted cash, was $30.6 billion compared with $27.6 billion at the end of the fourth quarter of 2010.

"GM has great potential to deliver profitable growth around the world as the recovery continues," said Dan Ammann, senior vice president and CFO. "While we're encouraged, we keenly recognize we have more opportunities to leverage our scale, improve spending and investment efficiencies, and optimize our strong balance sheet."


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    • 1 Second Ago
  • 35 Comments
      carfan
      • 3 Years Ago
      It is great news for GM. Also Ford and Chrysler did exceptionally well in April. This just proves that good design coupled with good quality and excitement will sell cars. The asians are lacking in the above traits. It is unfortunate that there are still too many "brainwashed' Americans who are still dwelling in the past when indeed the japanese products were superior to the american ones. Those days are gone and at the moment the japanese look horribly boring and desperately outdated, with quality that leaves a lot to be desired. I sincerely hope that this trend continues and history will remember these 2-3 decades as the 15 minutes of fame for the "wanna be" asians. They should go back to building Rickshaws, and leave the construction of the 4 wheeled vehicles to the Americans and Europeans.
        styxmiko
        • 3 Years Ago
        @carfan
        I couldn't agree more carfan... I look at the idiotic asian cars on the road and just cannot believe my eyes how laughable these asian designs are. How desperate and aesthetically comatosed do you have to be to drive one of these circus cars. The real unexplained phenomenon is that there are so many bloggers who are virtually indignated when told the truth about the cars they drive.
      dragonrage1191
      • 3 Years Ago
      I may just being optimistic here but, I see the gains made by GM a win win for both the company and the customers. the more GM profits, the more likely they will make bigger investments into technology and their product line. lets hope those investments means more jobs in Michigan.
      • 3 Years Ago
      [blocked]
        Chase
        • 3 Years Ago
        I wish they had taxes for all caps and 18 exclamation points.
        • 3 Years Ago
        [blocked]
          Devonblue4u
          • 3 Years Ago
          At least they make money by employing PEOPLE and SELLING GOODS and SERVICES. As opposed to moving money around like investment banks that got nearly a trillion of those tax $$$$. Get your priorities straight. Your car is the second biggest investment you make and is a big business. GM and US car makers employ thousands who contribute those tax dollars back to your government. Unless you think we should drive a import and work at McDonald's for a living....
        axiomatik
        • 3 Years Ago
        Ummm, that $16 billion tax break is the estimated tax break over 20 years, not a single year. Even if GM never got the tax break, GM would only pay income taxes on the $3.2 billion profit, and thus, would have still posted a profit of something like $2.5 billion.
      • 3 Years Ago
      [blocked]
        axiomatik
        • 3 Years Ago
        GM has paid back the loan portion of the 'bailout'. It is up to the government to get back any additional money buy selling their remaining shares. The government made back $13.5 billion from selling a portion of its shares during the IPO.
        vettes4show
        • 3 Years Ago
        OMG Butterfly, you clearly do not understand corporate America. Many of those "billions" will go directly back into funding future products that take 3-4 years to design, engineer, test and finally build in order to bring them to the market. And thanks to the EPA mandates for CARB and CAFE requirements, more money needs to be spent and invested on advanced technologies just to get a common car to meet these ever increasing stringent Federal requirements. If you are so worried about your return on the Government loaned monies to GM, perhaps you should shine your light over onto Chrysler earnings and see that they have very little hope in paying back the Government funds.
          Ben
          • 3 Years Ago
          @vettes4show
          I dont think Chrysler is as bad off as you think and they atleast have a plan/intentions of paying it back. http://www.autoblog.com/2011/04/28/chrysler-announces-plan-to-repay-government-loans/
          Tone
          • 3 Years Ago
          @vettes4show
          Ben, the difference is that GM has been acting on it's plan and seeing it play out for the past year and a half, with a large portion of funding paid back. Chrysler announced it's plan within the past week. "At least" you say?
      Dave
      • 3 Years Ago
      People don't seem to understand how this works. There were cash loans paid to GM to operate it's business, those are long ago paid back (last year). There was an exchange of equity, cash for stock (majoriity ownership) in order for that money be completely recovered the government has to sell it's equity. GM isn't in a position or required to fork out of their profits to repay a loss because the government has poor timing in it's stock sale. Let's just say that the goverment lost 11B on the sale (that number has been bandied about in the media) that's a micro-pittance compared to the trillions that would have rushed out the US economy over the next decade with the collapse of the US automotive industry.
        RICK
        • 3 Years Ago
        @Dave
        Let's just say GM and Bernie Madoff have a lot in common.
      Alluster83
      • 3 Years Ago
      The Cruze sells at an average transaction price of 3000$ above the Corolla and 2000$ above the Civic. If the new Sonic is anywhere as good as the Cruze is, we can expect it to outsell the Yaris and Fit consistently and at a higher profit. The New fiesta is already doing that and actually sells higher than the Corolla and Civic, cars one segment above it. The Malibu also has been slowly biting into the Camcord retail share and sells for 800$ above a similarly equipped camcord. GM and Ford are gaining in the small car and midsize segment while holding their own in the Truck/SUV segment.. The next few years will be very interesting to watch. GM currently has holes in its lineup that needs addressing though. A new Impala redesign that looks like the G8, minus the split grill. A RWD Buick flagship based on the Commodore, a buick coupe based on the Vette, and so on would greatly help. Buick currently is only 3 models (Lucerne is being phased out) and the Caddy only has 2 decent models (CTS and SRX)
        drcmelr
        • 3 Years Ago
        @Alluster83
        Nice numbers to back up now much GM and others are starting to bite into Honda and Toyota's pie. I'm with you on bringing back the G8 as a Chevy or Buick. And this time make the GT available with a 6mt por favor.
      • 3 Years Ago
      [blocked]
      RICK
      • 3 Years Ago
      The American people are stuck with the debt and GM has accounting issues. Anyone could make a profit. http://nlpc.org/stories/2010/12/19/gms-accounting-issues-run-deep
        Dave
        • 3 Years Ago
        @RICK
        That's what the previous CFO and Daniel Amman were brought in to fix. That's been done. The article is a hackjob.
          RICK
          • 3 Years Ago
          @Dave
          They fixed everything in one quarter. Excellent!!!
      cartalk101
      • 3 Years Ago
      It's great to see GM doing well, and wish them the best. However, if they are in a place of profit, make sure they pay back in full what they owe the taxpayers. We scratched your back, now please say thank you.
        Dave
        • 3 Years Ago
        @cartalk101
        GM already paid back what it "owes". The government has to sell the stock to recover the rest.
      kyler
      • 3 Years Ago
      So, can I get my job back? GM involuntarily cut me after 25 years of service and over 15 promotions. Remember 600,000 jobs were lost in the restructuring of the US auto industry. All these jobs add up to over $30 BILLION in annual wages. This is the real reason why the domestic industry is now profitable. However, the cost in unemployment, foreclosures, lost tax revenue, and other negative economic impacts must be included when valuing the "successful comeback". My support and good luck to the other 599,999 waiting for their second chance.
        tigersharkjr
        • 3 Years Ago
        @kyler
        I for one hope you get your job Kyler. I think if we give them enough time, the jobs shouldreturn.
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