Autoblog

GM reports 2011 profit of $7.6 billion

John Neff — Thu, 16 Feb 2012 09:35:00 EST

General Motors today reported its earnings for last year and the fourth fiscal quarter of 2011. The automaker's profits for 2011 totaled $7.6 billion, up from $4.7 billion in 2010.

While the news was excellent for the full year, fourth quarter net income was only $472 million, or about the same as Q4 2010. While that makes eight straight quarters of positive numbers since the company emerged from bankruptcy in 2009, the earnings were weighed down by losses of $562 million in Europe from GM's Opel subsidiary.

There were also a number of one-time events that affected earnings in the fourth quarter, without which GM's profit would've nearly doubled to $900 million.

Still, the company counts 2011 as a successful year, and the stats tend to agree. TrueCar.com reports that GM increased its sales by over 13 percent, increased market share by half a point, grew average transaction prices by over $1,100 and lowered incentive spending by five percent. Based on that performance, all 47,500 hourly employees will receive profit sharing checks of up to $7,000. Check out The General's official press release after the jump.

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GM hires agency to identify white-collar job cuts

Jonathon Ramsey — Thu, 29 Dec 2011 08:43:00 EST

Filed under: GM, Earnings/Financials

General Motors isn't happy that it's five-percent operating margin is less than the predicted seven-percent at Ford or the 10 percent at Hyundai. To boost its number, Bloomberg reports that GM has hired consulting firm Hackett Group to identify areas in which it can save on white-collar costs, either through job cuts or efficiencies. Unlike in 2009, however, buyouts and tranches of layoffs aren't on the table.

An outside analyst considers Hyundai's returns out of reach, since the Korean firm benefits from exchange rates and more efficient platform sharing. The analyst also considers that GM will only find "a rounding error" in its pursuit of leaner white collar operations, but that might be enough to start. When considering closer GM competitors, through the first nine months of this year, Volkswagen could boast an operating margin of 7.7 percent, Ford's is 6.7 and Toyota is aiming to reach five percent (down from almost nine percent before its recall crisis and the recently steroidal yen). In that case, even a rounding error will make a statement.

Even though we're dealing with a "new" GM, talk of reassigned engineers can easily remind one of the dark days when fat-trimming exercises turned into amputations and handicapped product on the showroom floor. Yet the company is on the up with the continued momentum of anticipated products, and this is what every world class company is required to do. Still, we'll be watching closely.

GM hires agency to identify white-collar job cuts originally appeared on Autoblog on Thu, 29 Dec 2011 08:43:00 EST. Please see our terms for use of feeds.

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General Motors reports earnings of $4.7B in 2010, first yearly profit since 2004

Zach Bowman — Thu, 24 Feb 2011 09:45:00 EST

Filed under: GM, Earnings/Financials

General Motors has officially announced earnings for its first full year of business after its emergence from bankruptcy. The automaker brought in $135.6 billion in revenue with a net income of $4.7 billion, which marks GM's first profit since 2004. Additionally, that profit was the largest for The General since 1999. Previously, GM had racked up $100 billion in losses.

Being in the black is good news for the automaker's 50,000 hourly workers who are expected to receive bonuses averaging $4,300 as part of a profit sharing program.

According to CNN Money, the change of pace is thanks largely to three things: strong U.S. sales, a growing auto market in China and a significantly lower cost structure thanks to the automaker's trip through bankruptcy.

GM Shares have inched up on the news, despite the fact that the stock market as a whole has dropped by five percent on blooming oil prices. CNN Money reports that GM shares are up five percent as a whole since the company's IPO last November, but that those shares will need to jump by 50 percent in order for tax payers to recoup the government's investment in the company. Follow the jump for the press release.

[Sources: General Motors, CNN Money]

Continue reading General Motors reports earnings of $4.7B in 2010, first yearly profit since 2004

General Motors reports earnings of $4.7B in 2010, first yearly profit since 2004 originally appeared on Autoblog on Thu, 24 Feb 2011 09:45:00 EST. Please see our terms for use of feeds.

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General Motors announces Q3 profit of $1.96 billion ahead of IPO

Zach Bowman — Wed, 10 Nov 2010 09:29:00 EST

Filed under: GM, Earnings/Financials

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]

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General Motors announces Q3 profit of $1.96 billion ahead of IPO originally appeared on Autoblog on Wed, 10 Nov 2010 09:29:00 EST. Please see our terms for use of feeds.

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General Motors reports $1.3 billion profit in second quarter

Sam Abuelsamid — Thu, 12 Aug 2010 10:27:00 EST

Filed under: GM, Earnings/Financials

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]

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General Motors reports $1.3 billion profit in second quarter originally appeared on Autoblog on Thu, 12 Aug 2010 10:27:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #178: GM Profit, Civic Redesign, 40 mpg Fiesta

Dan Roth — Tue, 18 May 2010 17:19:00 EST

Filed under: Podcasts, Etc., BMW, Ford, GM, Earnings/Financials

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Our iTunes feed for the Autoblog Podcast is still busted, thanks to the TV Squad debacle with an update gone wrong. We're still waiting on resolution of the issue, and the real fix may involve each and every one of you having to resubscribe. We'll let you know.

In the meantime, if you subscribe to The Autoblog Podcast via iTunes, you may not automatically receive this week's episode. The easiest workaround until we get this fixed is to use the link below to download the MP3 file directly and drag it into iTunes. We're terribly sorry for the inconvenience, thanks for your ongoing patience.

For Episode #178 of the Autoblog Podcast, Chris Shunk, Sam Abuelsamid, and Dan Roth cover GM's profit announcement, the delayed Honda Civic redesign, the 40 mpg fuel economy rating for the Ford Fiesta, and wistfully pine to have been part of our recent sports car comparison test. It starts with the Autoblog Garage and ends with a couple questions, with 82 minutes between snippets of theme music. See you next week!

Autoblog Podcast #178: GM Profit, Civic Redesign, 40 mpg Fiesta

In the Autoblog Garage:

BMW 750Li
BMW 5 Series Gran Turismo
Toyota Tacoma

Hosts:
Chris Shunk, Sam Abuelsamid, Dan Roth,
Runtime: 1:22:04

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Autoblog Podcast #178: GM Profit, Civic Redesign, 40 mpg Fiesta originally appeared on Autoblog on Tue, 18 May 2010 17:19:00 EST. Please see our terms for use of feeds.

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GM earns $865M first quarter profit, first in three years

Zach Bowman — Mon, 17 May 2010 10:30:00 EST

Filed under: GM, Earnings/Financials

General Motors has just posted its first quarterly profit in three years, and it's not exactly chump change. The General just announced it managed to rake in a net income of $865 million during the first quarter of 2010. According to The Detroit News, the change in direction is thanks largely to GM's rebound here in North America. The company's domestic operation pulled down a $1.2 billion profit for the first three months of the year thanks to a slimmer debt load and the sale of Saab to Spyker. During the fourth-quarter of 2009, GM posted a $3.4 billion loss.

Likewise, things are looking up internationally. The Detroit-based automaker also returned a $1.2 billion profit from its global efforts as well. That marks a $500 million increase compared to the fourth quarter of 2009. This is all good news for those eying when the fresh-from-bankruptcy manufacturer will start selling stock once again. Currently, GM is shooting for an IPO late this year or early in 2011. Tax payers and investors can't wait. Hit the jump for the press release.

[Source: General Motors, The Detroit News | Image: Scott Olson/Getty]

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GM earns $865M first quarter profit, first in three years originally appeared on Autoblog on Mon, 17 May 2010 10:30:00 EST. Please see our terms for use of feeds.

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How is it that GM is still worth more than Ford?

Dan Roth — Mon, 19 Apr 2010 13:41:00 EST

Filed under: Etc., Government/Legal, Chrysler, Ford, GM, Earnings/Financials

General Motors, which hasn't been allowed to forget its recent financial propping up by all of us, is apparently still worth more than Ford Motor Company. That's a dubious fact that sticks in the craw of Detroit Free Press columnist Tom Walsh. Ford, you'll recall, preemptively mortgaged itself up to, and including its dental fillings to avoid the fate that befell GM and Chrysler. What's not computing for Walsh is that despite clearer financial leadership, Ford is still worth less according to the trading price of Motors Liquidation bonds, the entrails of old GM.

The whole thing is buried in a bunch of financial mumbo-jumbo, and the value of Motors Liquidation bonds are tied to bets on the success of a future initial public offering of the new GM. Sound excessively creative and possibly even irrationally exuberant? Despite having its most solid lineup in years and aggressively trimming brands, dealers, and liabilities, the General is clearly not out of the woods yet. Perhaps to market gamblers, GM is looking good right now, but there are plenty of hurdles to clear before its bailout is a true success.

In comparison, Ford is likely to post a profit this year, and GM will have to put up some good numbers for a few quarters to keep investors thinking that it's a worthwhile investment.

[Source: Detroit Free Press]

How is it that GM is still worth more than Ford? originally appeared on Autoblog on Mon, 19 Apr 2010 13:41:00 EST. Please see our terms for use of feeds.

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Lutz claims GM will cut fleet sales by 100k in 2007

Dan Roth — Wed, 10 Jan 2007 07:52:00 EST

Filed under: Trends, GM, Earnings/Financials

Dang, it looks like everyone will have to dream up a new way to insult the four-door Cobalt. GM's Bob Lutz has announced that sales to fleet companies will be curtailed to the tune of 100,000 vehicles this year. The reduction is part of an ongoing effort to boost the resale value of General Motors cars. Reducing sales to fleet customers opens the door for some other automaker to deal with the stigma and doesn't ding the bottom line as much as it would seem.

Low-margin sales to fleet customers are less helpful to automakers than retail sales, and the perception that comes along with being a fleet powerhouse dings the perception further.

Lutz doesn't sound overly concerned with short-term hits in the bottom line, preferring to take the uncommon long view and even admitting that there will be bloodletting before GM is fully realizing its potential. He's been refreshingly candid about making the product good enough that it requires no excuses or incentives to sell, and changing the sales mentality at GM from one of panic to true competition for the foreign makers that have cleaned the domestic industry's clock. Product is no longer the hurdle for GM to clear, there's lots of great stuff for 2007, and we look forward to the day when people strike up excited conversations about domestic product with us.

[Source: Automotive News sub. req'd]

Lutz claims GM will cut fleet sales by 100k in 2007 originally appeared on Autoblog on Wed, 10 Jan 2007 07:52:00 EST. Please see our terms for use of feeds.

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