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Posts Tagged ‘automotive earnings’

Growth of Global Car Market Slowing Down

“Cyclicality has not been repealed.”

by on Jun.23, 2015

U.S. car sales could be reaching their cyclical peak in the next year or two, according to study.

Led by the U.S. and China, global auto sales have been on a tear in recent years, reaching all-time record numbers despite the poor performance in markets like Europe and Latin America. But a new study warns that demand is going to soften – and soon.

Worldwide, sales will continue to increase, according to the annual automotive outlook produced by Detroit-based turnaround specialist AlixPartners. But the rate of growth will slip to an annual 2.6% for the next seven years, down from 3.1% between 2007 and 2014.

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The U.S. and China will likely see the sharpest slowdowns, the study warns, emphasizing that “cyclicality has not been permanently repealed.”


FCA Turns Q1 Profit, Grows Revenue

Maker improves margins in North America, Europe.

by on Apr.29, 2015

FCA reported a $101.2 million Q1 profit today. Additionally, the maker improved its margins in North America and Europe.

Despite a currency shift that hurt the company bottom line, Fiat Chrysler Automobiles earned a profit of $101.2 million (92 million euros) during the first quarter as revenue grew by 19% and margins improved in both North America and Europe.

FCA earned a profit for the second straight quarter in Europe where it has struggled for several years and made more money in North America, but said its losses in South America deepened.

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The company’s profit for the first quarter of this year was an improvement over the $190 million loss that the automaker recorded last year after it recorded a $672-million charge to cover the cost of purchasing shares of Chrysler previously held by the UAW Retiree Medical Benefits Trust. (more…)

BMW’s 3Q Profit Slides 1.2 Percent

Vehicle sales strong, other factors cause slippage.

by on Nov.04, 2014

BMW's 2014 X5 continues to set the pace for luxury SUVs and brought in big profits to the maker in the third quarter.

BMW AG’s profits fell slightly in the in the third quarter despite strong sales of its vehicles, particularly its X5 sport-utility vehicle made in South Carolina. The company sold 509,669 cars worldwide, an increase of 5.8%.

The Bavarian automaker’s net profit dropped 1.2% in the quarter due to non-cash losses on foreign currency hedges and the reduced value of a stake in a key supplier. The company is saying it expects to be more profitable this year than it was last year.

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Net profit of 1.31 billion euros ($1.64 billion) for the third quarter ending Sept. 30 fell short of analyst expectations for 1.36 billion euros, reported by the Associated Press. (more…)

GM Posts 89% Jump In Earnings

The “results bear out,” says CEO Akerson, though investors remain skeptical.

by on Aug.04, 2011

"There's a high level of uncertainty out there," cautions GM CFO Dan Anmann.

A day after its stock took a drubbing – falling to the lowest level since last year’s IPO — General Motors Co. revealed it nearly doubled its second-quarter earnings as all of its global regions returned to the black.

The once-bankrupt maker had a net income of $2.5 billion, or $1.54 per share, an 89% improvement from the $1.3 billion, or 85 cents per share, earned during the same period a year ago.  Chairman and chief executive officer Dan Akerson noted it was GM’s company’s sixth consecutive profitable quarter – and the third since IPO — as the company continued to recover from its bankruptcy two years ago.

“GM’s investments in fuel economy, design and quality are paying off around the world as our global market share growth and financial results bear out,” Akerson said. “Our progress has been steady and we’re preparing to launch more new products this year, including the Chevrolet Sonic in North America, the Opel/Vauxhall Zafira in Europe and the Baojun 630 in China to keep the momentum going.”

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GM’s overall revenues increased 19%, or $6.2 billion to $39.4 billion, compared with the second quarter of 2010. Earnings before interest and tax, or EBIT, were $3 billion compared with $2 billion in the second quarter of 2010. There were no special items in either period.

Significantly, every region — including Europe — was in the black for the April – June quarter.  In the home market, GM North America (GMNA) reported an EBIT-adjusted profit of $2.2 billion, an improvement of $0.6 billion compared with the second quarter of 2010.


Nissan, Mazda Sink Into Recessionary Slump

For Nissan, first loss in a decade.

by on May.12, 2009

Nissan is reporting its first loss in a decade -- a setback for CEO Carlos Ghosn, who is shown here announcing the Nissan Revival Plan, in October 1999.

Nissan is reporting its first loss in a decade -- a setback for CEO Carlos Ghosn, who is shown here announcing the Nissan Revival Plan, in October 1999.

The toll from the global automotive recession continues to mount, with both Mazda and Nissan reporting losses, the larger maker its first in a decade.

But neither automaker approached the massive losses posted by the Japanese giant, Toyota, which underscored the depth and breadth of the latest downturn, which started out in the U.S. but has now spread across the globe.

Nissan’s loss for the fiscal year that ended March 31st came to $2.4 billion, or ¥233.7 billion. That’s actually a bit better than the ¥288 billion loss the company had earlier forecast, but a sharp reversal from the ¥482.3 billion profit of a year ago. Sales and revenues were also down sharply – though a wee bit better than earlier forecast. Worldwide volumes were off 9.5%, to 3.4 million vehicles, with revenues off 22%, at ¥8.437 trillion.

This marked the first time Japan’s third-largest automaker sunk into the red since CEO Carlos Ghosn was recruited from Nissan’s then-new alliance partner, Renault, to help turn around the once-failing Asian carmaker.

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“The crisis is ongoing and market conditions are still volatile,” Ghosn told reporters during a meeting at Nissan’s headquarters, in Tokyo, but he added there are some modest reasons for optimism. “We are beginning to see some signs of improved access to credit, the impact of government stimulus packages and a gradual return in consumer confidence.”

Ghosn predicted another loss for the coming year, but said he expected it to be smaller, around ¥170 billion , with unit sales forecast to fall to 3.08 million cars, trucks and crossovers.    (more…)