Detroit Bureau on Twitter

Archive for the ‘Earnings’ Category

Nissan’s Operating Profits Down for FY17, Favorable Tax Rates Raise Income

Company predicts vehicle sales will rise in 2018.

by on May.14, 2018

Nissan Chief Hiroto Saikawa reported the automaker's earnings for 2017.

Despite a tough environment for the first nine months of its fiscal year, Nissan Motor Co. Ltd rallied to post increases in revenue and net income for 2017 and sales increases in its top three markets: the U.S., China and Japan.

Nissan’s January-March profit was 168.8 billion yen, or $1.5 billion, down from 249 billion yen last year. Quarterly sales fell 0.9% to 3.4 trillion yen, or $31.3 billion.

Global News!

The automaker reported an operating profit of 574.8 billion yen, or $4.9 billion, on net revenues of 11.95 trillion yen, or $109 billion, equivalent to an operating margin of 4.8%. The operating profit was down from 2016 by 22.6% and margins fell 1.5%. (more…)

Mitsubishi Motors Profits Rebound Big in FY17

Third leg of Alliance enjoys turnaround year.

by on May.11, 2018

The new Mitsubishi Eclipse Cross is helping to draw new buyers to the Japanese brand.

Once considered an also ran, Mitsubishi Motor Co has found new life on the heels of its alliance with Renault and Nissan.

Mitsubishi Motors reported net sales were up 15% year-on-year to 2.19 trillion yen, or $20.1 billion, for Fiscal Year 2017, ending March 31, 2018. Operating profit rose sharply to 98.2 billion yen, or $899.5 million, representing an operating margin of 4.5%, compared with an operating profit of 5.1 billion yen, or $45.8 million, in the same period of Fiscal Year 2016.

Industry News!

The company generated net income of 107.6 billion yen, $988.3 million, for the latest 12-month period, reversing a net loss of 198.5 billion yen, or $1.8 billion, in the prior fiscal year, the company reported. (more…)

Toyota Earnings Jump, Despite Rising U.S. Incentives

Record R&D spending could hurt operating profit.

by on May.09, 2018

Toyota CEO Akio Toyoda is not only pushing for automotive sales growth, but leading the company into the emerging mobility sector.

Toyota saw earnings jump 21% between January and March, the final quarter of its fiscal year, despite having to sharply ramp up incentives in a slowing U.S. automotive market.

The automaker reported a profit of 480.8 billion yen, or $4.4 billion, up from 398 billion yen the year before. Toyota’s sales also rose 2% to 7.58 trillion yen, or $69 billion. For the full fiscal year, it earned 2.49 trillion yen, or $23 billion, a 36% increase, with sales rising 6%, to 29.38 trillion yen, or $268 billion.

Beyond the Numbers!

The strong performance helped highlight the cost-cutting efforts initiated by CEO and President Akio Toyoda, the grandson of Toyota’s founder declaring, “We’ve become a leaner, trimmer company … and in the past year we’ve developed our remaining fat into muscle, so that we’re in a strong position to be more competitive.”

(more…)

Chevrolet Adds Performance Package to Suburban Line-Up

New version gets 6.2-liter V8 putting out 420 horsepower.

by on May.08, 2018

For 2019 the Chevy Suburban gets an upgrade: the RST Performance package.

For the past 43 years, Chevrolet has been the leader in one of the most lucrative segments in the automotive business — full-size sport utility vehicles.

Combined Chevy Suburban, the granddaddy of all full-size SUVs, and the Chevy Tahoe account for nearly one out of every two full-size SUVs sold. Tahoe and Suburban customers are also the most loyal owners in the segment, with 77% of owners replacing their full-size SUV with another Tahoe or Suburban.

Product News!

Now Chevrolet is planning to bolster its claim by offering the new Suburban RST Performance Package. Featuring a 420-hp, 6.2-liter V-8 engine, Magnetic Ride Control with performance calibration and a new Hydra-Matic 10L80 10-speed automatic transmission, the Suburban RST Performance Package brings a seamless blend of style and performance to Chevy’s portfolio of full-size SUVs, according to Chevy executives. (more…)

BMW Profitability Hits a Bump

Strong car sales offset by miserable motorcycle results.

by on May.07, 2018

BMW CEO Harald Krueger said the company's recent financial results were impacted negatively by poor motorcycle sales.

The BMW Group’s profits dropped slightly during the first quarter as the company’s motorcycle business took a beating during the first three months of the year offsetting a solid gain by the company’s automotive business.

Harald Krueger, chairman of the Board of Management of BMW AG, said the group is “confident” it can reach projected targets for the current financial year since the international automobile markets will continue their generally upward trend.

Global News!

However, the favorable factors are offset by extremely high levels of upfront expenditure for new technologies, fierce competition and rising personnel expenses. The global political and economic environment is expected to remain volatile. (more…)

Musk Looks Beyond Model 3 Problems, But Creates Some Headaches in the Process

CEO talks future product, factories – but still sends stock plunging.

by on May.03, 2018

Forget those earnings numbers. Tesla CEO Elon Musk was far more interested in talking about future products, the next-gen Roadster shown here.

Tesla CEO Elon Musk is not one to suffer fools – or critics – lightly, as he proved during a 75-minute teleconference call following the release of the automaker’s first-quarter earnings report on Wednesday evening.

The South African-born executive attempted to put a positive spin on what was Tesla’s worst-ever quarterly deficit, promising future earnings while also revealing plans for new factories, new products and a new, fully hands-free version of the Autopilot system. But Musk also offered a harsh assessment of some of the reporters on the earnings call, while repeatedly cutting off analysts looking for long-term financial projections that he dismissed as “boring.”

Tesla News!

“These questions are so dry, they’re killing me,” he interjected before dismissing one analyst’s questions. Musk later shifted his disdain to reporters, at one point suggesting that by questioning the safety of Tesla’s current, semi-autonomous version of Autopilot, reporters might convince drivers to turn it off “and then die.”

(more…)

Despite Record Loss, Investors See Silver Lining Pockets in Tesla’s Q1 Earnings

Revenues beat expectation, loss narrower than forecast – but troubles remain.

by on May.02, 2018

Tesla CEO Elon Musk has taken to sleeping at the Fremont plant hoping to drive improvements in quality and production levels.

Tesla managed to beat Wall Street expectation on Wednesday, even as it reported the biggest loss in the company’s history.

But revenues exceeded expectations and the loss was actually less than anticipated, while the Silicon Valley automaker noted that production of the critical Model 3 battery-sedan reached 2,270 in the week prior to a temporary shutdown of the Fremont, California assembly plant last month. That’s up from barely 2,000 at the end of the first quarter.

Dig Deeper!

“The thing I’m most excited about is the rapid increase in output,” said Musk during a Wednesday afternoon conference call with analysts and reporters. “Production is improving dramatically, exponentially, in fact.”

(more…)

California, 16 Other States File Suit Against the EPA

Attorneys General claim EPA is violating the law by not enforcing it.

by on May.01, 2018

California Attorney General Xavier Becerra and 16 other Attorneys General sued the EPA over CAFE mandates.

Less than 24 hours. That’s how long it took for California and 16 other states to respond to the Environmental Protection Agency’s plan to roll back fuel economy standards and revoke California’s ability to set its own mileage and emissions mandates.

The 17 states filed suit in the United States Court of Appeals for the District of Columbia Circuit. The move was led by California Attorney General Xavier Becerra, and the suit alleges that that the U.S. Environmental Protection Agency’s effort to roll back the stringent gas mileage rules that were adopted by former President Barack Obama’s administration is “unlawful.”

News Now!

California was joined by Connecticut, Delaware, Illinois, Iowa, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and the District of Columbia. (more…)

Wall Street Waiting for Tesla Earnings as Automaker Burns Through Cash

The big question: will Tesla need a new cash infusion?

by on May.01, 2018

Tesla is losing about $6,500 a minute - or about as much as a Model 3 costs in the time it takes to read this story.

Whether you’re someone who sees the glass as half-full or half-empty, there’s plenty to ponder as Tesla prepares to reveal its first-quarter earnings on Wednesday.

The California battery-carmaker saw a big surge in production of its critical new Model 3 during the January to March period – but still fell 20% short of its target. Nonetheless, that was expected to have pushed revenues up 16.5% during the quarter, to $3.14 billion, according to Zacks Consensus Estimates. But with the automaker struggling to get things running smoothly at its Fremont, California assembly plant, quarterly earnings are expected to plunge 153.4%, year-over-year, with Tesla running a per-share deficit of $3.37.

Beyond the Headlines!

Short-sellers seem to be the ones with the biggest smiles these days, as Tesla’s worsening cash burn problem leaves investors wary and worried that the carmaker may soon have to beg Wall Street for money to keep its operations going.

(more…)

Daimler Profits Drop Double Digits Despite Car Sales

Strong results from Mercedes-Benz can't halt slide.

by on Apr.27, 2018

Daimler AG's Dieter Zetsche said that despite the drop in profits, the company was on track with its plans.

Daimler AG saw net income drop by double digits in the first quarter despite an increase in revenue in and record unit sales by Mercedes-Benz Cars.

The Daimler Group reported net profit for the first quarter of 2018 of 2.4 billion euros or 2.12 euros per share was 11% below the prior-year figure of 2.7 billion euros or 2.39 euros per share. First-quarter of earnings before interest and taxes of 3.335 billion euros was 13% below its prior-year EBIT of 3.8 billion euros.

Financial News!

“We are sustainably continuing along our profitable growth course and sold more vehicles in a first quarter than ever before,” said Dieter Zetsche, Daimler CEO and chairman of the board of management. (more…)