GM posts $891-million profit

recxjake · 07-31-2007, 08:00 AM

GM posts $891-million profit

July 31, 2007

BY KATIE MERX

FREE PRESS BUSINESS WRITER

General Motors Corp., the largest U.S. automaker, reported an $891-million profit for the second quarter of the year, driven by strong sales in emerging global markets and reduced costs from its restructuring efforts.

"We again saw improved results in sales, income and cash flow this quarter, driven by the continued successful implementation of our business strategies," said Rick Wagoner, GM chairman and chief executive officer.

"In particular, our heavy commitment to key growth markets around the world really paid off in strong growth and earnings. In North America we continue to make progress with our focus on great new products, a disciplined sales and marketing strategy, and structural cost reduction, although profitability remains close to breakeven."

GM’s quarterly profit of $891 million, or $1.56 per diluted share, is an improvement of $4.3 billion compared with a reported net loss of $3.4 billion, or $5.98 per diluted share, in the year-ago quarter.

The positive results boosted GM’s stock 7% in pre-market trading this morning, with shares of the automaker trading up $2.29 a share to $34.90 about 7:50 a.m.

The earnings results for the second quarter 2007 included $520 million, or 92 cents per diluted share, in special charges associated with GM's support of the bankruptcy and reorganization of its former parts arm Delphi Corp. and various North America restructuring charges.

Excluding those charges, GM said it earned $1.4 billion, or $2.48 per diluted share, compared with $1.1 billion, or $2.03 per diluted share, in the year-ago quarter.

GM’s North American operations reported a net loss of $39 million, compared with a net loss of $3.95 billion in the same quarter last year. When it excludes Allison Transmission, which it is in the process of selling, the North American operations reported a slight profit of $78 million for the quarter, compared with an adjusted loss of $94 million from continuing operations in the year-ago quarter.

Overall, Credit Suisse analyst Chris Cerasco said in a note Tuesday morning that GM’s earnings — at $2.48 per share — had “a big upside,” coming in significantly higher than the consensus analyst estimate of $1.13 per share. But, he said, North America again fell “short of expectations,” with 80 cents of its earnings improvement coming from tax-related gains.

GM said that its North American results reflect reduced fixed costs and that a high percentage of its vehicle sales last quarter were of profitable large trucks and well-equipped vehicles. Those positives, however, were offset by lower volumes of sales and unfavorable foreign exchange rates, the company said.

“It’s true that our North America team has made huge improvements, and we appreciate everyone’s hard work,” Wagoner said. “But our current earnings clearly demonstrate we’ve got more to do.”

http://www.freep.com/apps/pbcs.dll/a...ESS01/70731014

recxjake · 07-31-2007, 08:05 AM

USA, USA, USA !!!!!!

**petegz28** · 07-31-2007, 08:05 AM

Ford reported a profit the other day too.

ChiefsfaninPA · 07-31-2007, 08:26 AM

Hopefully this is a trend that will continue. Eventually(hopefully) the American car companies will finally get it.

StcChief · 07-31-2007, 08:29 AM

Why did it take them so long to restructure and cut their losses and fix stuff?

recxjake · 07-31-2007, 08:31 AM

Quote:

Originally Posted by StcChief

Why did it take them so long to restructure and cut their losses and fix stuff?

This is there third straight profitable Q.

**cdcox** · 07-31-2007, 08:32 AM

I hate big auto.

StcChief · 07-31-2007, 08:36 AM

Quote:

Originally Posted by recxjake

This is there third straight profitable Q.

BFD where were they in the 70s pumping out sh1t products and not changing their tune. 80s / 90s more glamour less quality.

now at least they are getting the quality dumping unprofitable things.

less cars/trucks variety = better quality.

recxjake · 07-31-2007, 08:37 AM

Quote:

Originally Posted by StcChief

BFD where were they in the 70s pumping out sh1t products and not changing their tune. 80s / 90s more glamour less quality.

now at least they are getting the quality dumping unprofitable things.

less cars/trucks variety = better quality.

Toyota changed GM's way of thinking... and they needed it.

El Jefe · 07-31-2007, 08:40 AM

I like GM, good to see.

StcChief · 07-31-2007, 08:41 AM

Quote:

Originally Posted by recxjake

Toyota changed GM's way of thinking... and they needed it.

I've been saying that since I was burned by GM/Crysler crap in 1978.
Japanese every since.

May consider GM/Ford again.

Sanka · 07-31-2007, 08:42 AM

Honda Civic > GM

recxjake · 07-31-2007, 09:11 AM

Quote:

Originally Posted by Sanka

Honda Civic > GM

Acutally,

Saturn Aura > Toyota Camry and Honda Civic

2007 Car of the year... Saturn Aura
2007 Truck of the year... Chevrolet Silverado

Chief Henry · 07-31-2007, 09:11 AM

Good for GM and USA made stuff. Consumer confidence is also sky high. What a great country we live in. We have freedoms and an abundance of food and entertainment.

I drive a 2005 Chevy Siverado and I love it. The last 5 vehicles we've bought have been Chevy's...

GOD BLESS THE USA...

**Donger** · 07-31-2007, 09:13 AM

Quote:

Originally Posted by recxjake

Acutally,

Saturn Aura > Toyota Camry and Honda Civic

2007 Car of the year... Saturn Aura
2007 Truck of the year... Chevrolet Silverado

07-31-2007, 08:00 AM
recxjake MVP Join Date: Oct 2005 Casino cash: $10004900	GM posts $891-million profit GM posts $891-million profit July 31, 2007 BY KATIE MERX FREE PRESS BUSINESS WRITER General Motors Corp., the largest U.S. automaker, reported an $891-million profit for the second quarter of the year, driven by strong sales in emerging global markets and reduced costs from its restructuring efforts. "We again saw improved results in sales, income and cash flow this quarter, driven by the continued successful implementation of our business strategies," said Rick Wagoner, GM chairman and chief executive officer. "In particular, our heavy commitment to key growth markets around the world really paid off in strong growth and earnings. In North America we continue to make progress with our focus on great new products, a disciplined sales and marketing strategy, and structural cost reduction, although profitability remains close to breakeven." GM’s quarterly profit of $891 million, or $1.56 per diluted share, is an improvement of $4.3 billion compared with a reported net loss of $3.4 billion, or $5.98 per diluted share, in the year-ago quarter. The positive results boosted GM’s stock 7% in pre-market trading this morning, with shares of the automaker trading up $2.29 a share to $34.90 about 7:50 a.m. The earnings results for the second quarter 2007 included $520 million, or 92 cents per diluted share, in special charges associated with GM's support of the bankruptcy and reorganization of its former parts arm Delphi Corp. and various North America restructuring charges. Excluding those charges, GM said it earned $1.4 billion, or $2.48 per diluted share, compared with $1.1 billion, or $2.03 per diluted share, in the year-ago quarter. GM’s North American operations reported a net loss of $39 million, compared with a net loss of $3.95 billion in the same quarter last year. When it excludes Allison Transmission, which it is in the process of selling, the North American operations reported a slight profit of $78 million for the quarter, compared with an adjusted loss of $94 million from continuing operations in the year-ago quarter. Overall, Credit Suisse analyst Chris Cerasco said in a note Tuesday morning that GM’s earnings — at $2.48 per share — had “a big upside,” coming in significantly higher than the consensus analyst estimate of $1.13 per share. But, he said, North America again fell “short of expectations,” with 80 cents of its earnings improvement coming from tax-related gains. GM said that its North American results reflect reduced fixed costs and that a high percentage of its vehicle sales last quarter were of profitable large trucks and well-equipped vehicles. Those positives, however, were offset by lower volumes of sales and unfavorable foreign exchange rates, the company said. “It’s true that our North America team has made huge improvements, and we appreciate everyone’s hard work,” Wagoner said. “But our current earnings clearly demonstrate we’ve got more to do.” http://www.freep.com/apps/pbcs.dll/a...ESS01/70731014
Posts: 5,133

07-31-2007, 08:05 AM	#2
recxjake MVP Join Date: Oct 2005 Casino cash: $10004900	USA, USA, USA !!!!!!
Posts: 5,133

07-31-2007, 08:05 AM	#3
petegz28 Supporter Join Date: Feb 2005 Location: Olathe, Ks Casino cash: $2764127	Ford reported a profit the other day too.
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07-31-2007, 08:26 AM	#4
ChiefsfaninPA "F_ck Family Fun Night" Join Date: Nov 2005 Location: York, PA Casino cash: $10005025	Hopefully this is a trend that will continue. Eventually(hopefully) the American car companies will finally get it.
Posts: 2,373

07-31-2007, 08:29 AM	#5
StcChief Playing for #1 Draft Pick Join Date: Oct 2003 Location: Just West of Lambs land Casino cash: $10004900	Why did it take them so long to restructure and cut their losses and fix stuff?
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07-31-2007, 08:32 AM	#7
cdcox www.nfl-forecast.com Join Date: Sep 2000 Casino cash: $2331769	I hate big auto.
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07-31-2007, 08:40 AM	#10
El Jefe Don't tread on me. Join Date: Nov 2006 Location: Where the peaches grow Casino cash: $9030572	I like GM, good to see.
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07-31-2007, 08:42 AM	#12
Sanka Veteran Join Date: May 2007 Casino cash: $2106977	Honda Civic > GM
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07-31-2007, 09:11 AM	#14
Chief Henry MVP Join Date: Aug 2000 Location: IOWA Casino cash: $10005088	Good for GM and USA made stuff. Consumer confidence is also sky high. What a great country we live in. We have freedoms and an abundance of food and entertainment. I drive a 2005 Chevy Siverado and I love it. The last 5 vehicles we've bought have been Chevy's... GOD BLESS THE USA... __________________ Patrick Mahomes...The only QB to ever play in the NFL with at least 5,000 passing yards in a single season and 5,000 passing yards in a single college season.
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