General Motors Company today announced its second quarter 2010 results with revenue of $33.2 billion and net income attributable to common stockholders of $1.3 billion. This is about a $14 billion swing when compared to the loss of almost $13 billion in Q2 of 2009 when it was bankrupt. GM only survived because of lavish taxpayer subsidies from the Canadian and U.S. governments.
GM earnings per privately-held share on a diluted basis tallied at $2.55. GM’s second quarter earnings before interest and tax (EBIT) was $2.0 billion.
Whether the results are good enough to engender private and institutional investor confidence in a pending IPO will be a matter of much debate today. Since the offering will be among the largest in history, its timing is crucial to acceptance.
“Yes, these are good enough results to get an IPO done,” said Joe Phillippi of the AutoTrends consultancy. Phillippi, who has written road show presentations for IPOs, noted that big questions remain around market conditions. “‘How many shares and at what price will private and institutional investors accept?” Phillippi said.
GM refused to comment on the IPO.
During the second quarter, GM vehicle production was up in all regions, totaling about 700,000 more vehicles at 2.3 million than the previous quarter. It estimated its global market share at 11.6%, with share gains in every region.