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]
GM achieves net income of $0.9 billion and EPS of $1.66
DETROIT, Mich. – General Motors Company today announced its first quarter 2010 results, marked by revenue of $31.5 billion and operating income of $1.2 billion. Net income attributable to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66.
GM's first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand.
GM North America had EBIT in the first quarter 2010 of $1.2 billion, up from a loss of $3.4 billion in the fourth quarter 2009. GM Europe had a loss before interest and taxes of $0.5 billion; an improvement of $0.3 billion from the fourth quarter. GM International Operations posted EBIT of $1.2 billion, up $0.5 billion from the fourth quarter.
Cash flow from operating activities was $1.7 billion and after adjusting for capital expenditures of $0.7 billion, free cash flow was $1.0 billion. GM ended the first quarter with $35.7 billion in cash and marketable securities, including funds in escrow.
"We're pleased with our first quarter performance, in particular achieving profitability," said Chris Liddell, vice chairman and chief financial officer. "In North America we are adding production to keep up with strong demand for new products in our four brands. We're also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet. These are all important steps as we lay the foundation for a successful GM."