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GM Delivers Strong, $1.1 Bil Q4 Earnings

But recalls drive down profit for full year to $2.8 bil.

by on Feb.04, 2015

GM CEO Mary Barra put a positive spin on the maker's latest earnings.

General Motors saw earnings surge 22.2% during the last three months of 2014, driven by strong U.S. and Chinese sales – but the maker also reported a sharp decline in its full-year net income which was hammered by the cost of major recall problems.

GM closed 2014 with fourth quarter earnings of $1.1 billion, or $0.66 a share, despite one-time items that reduced earnings by $900 million, or $0.53 a share. By comparison, the maker earned $0.9 billion, or $0.57 a share, during the final three months of 2013.

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“A strong fourth quarter helped us deliver very good core operating results in 2014 despite significant challenges we and the industry faced,” said GM CEO Mary Barra in a prepared statement. “By keeping our customers at the center of all our decisions, we addressed those challenges head-on and outlined a customer-focused strategic plan that will guide our company well into the future.”


GM Forecasts Improved Profitability in 2015

Past year’s balance sheet battered by recall crisis.

by on Jan.14, 2015

General Motors CEO Mary Barra is predicting a strong 2015 for the Detroit-based automaker.

After watching General Motors get hammered for its safety lapses last year, investors have gotten some good news from the Detroit automotive giant. GM’s senior management team, led by CEO Mary Barra, predicted earnings should bounce back in 2015.

While they didn’t offer a specific earnings target, Barra and her top lieutenants told those attending an industry conference in Detroit that they are on track to meet their financial targets, in part due to the anticipated turnaround of the company’s long-troubled European operations.

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“We had a pivotal year in 2014, outlining a customer-focused strategic plan for the company and delivering on our commitments by achieving strong core operating performance,” Barra said during the Deutsche Bank 2015 Global Auto Industry Conference. “We’ll build on this momentum in 2015 and continue executing our plan to become the most-valued automotive company.” (more…)

GM Earnings Plunge 40% for Second Quarter

Plunge caps a disastrous week.

by on Aug.02, 2012

GM CEO Akerson tried to put a positive sign on some negative results.

Wrapping up a series of setbacks, General Motors Co. today reported its net income dropped by 40% in the second quarter to $1.5 billion, or 90 cents per share, as it posted another huge loss by its money-losing European operations.

In the second quarter last year, GM earned $2.5 billion, or $1.54 per share. Net revenue in the second quarter of 2012 also dropped to $37.6 billion, compared with $39.4 billion in the second quarter of 2011. The decrease was due almost entirely to the strengthening of the U.S. dollar versus other major currencies, GM officials said Thursday.

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The weak earnings report capped a disastrous week that began when the giant U.S. maker unexpectedly ousted its controversial global marketing chief. Then, on Wednesday, GM announced July sales had dipped even as key foreign competitors, such as Toyota, posted double-digit gains.

“Our results in North America, our International Operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and chief executive officer Dan Akerson.


GM Beats Forecast – But Earnings Still Hurt by Europe

North America on the rise.

by on May.03, 2012

GM CEO Dan Akerson during a recent visit to China.

General Motors reported a $1.0 billion profit, equal to 60 cents a share, for the first quarter, handily beating analysts’ expectations – but the numbers would have been substantially better were it not for the maker’s continuing problems in Europe.

Once forecast to be back in the black this year, GM Europe lost $256 million for the January to March quarter, with GM taking another $590 million writedown in what is now likely to become the subsidiary’s 12th consecutive year of losses.

But those losses were offset by unexpectedly strong numbers from the maker’s home operations in North America, where GM earnings rose 35%, to $1.7 billion.

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“It’s a long-term path that we’re on to get to the profitability levels that we want,” Dan Ammann, GM’s chief financial officer, said during a conference call with reporters. “This is a solid quarter: revenue growth, profit growth, margin growth, cash flow improvement.”


GM Posts $2.0 Bil For Third Quarter

Third consecutive black quarter for long-troubled maker.

by on Nov.10, 2010

GM "demonstrated...significant progress," said CFO Chris Liddell.

Landing right in the middle of its forecasted range, General Motors is reporting a third-quarter profit of $2.0 billion, and the maker is predicting a full-year profit, as well, although the pace is slowing down.  It would be the first full year in the black since 2004.

The third-quarter net, which works out to $1.20 a share after a three-for-one split, marks the third consecutive quarter in the row GM has run in the black, a significant turnaround from its situation prior to last year’s bankruptcy – all the more so considering current U.S. car sales remain at deep recessionary levels.

“As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress,” said Chris Liddell, vice chairman and chief financial officer, in a prepared release.

Last week, when announcing details of its long-awaited IPO, GM had indicated it would post a roughly $2 billion profit for the quarter, with an upside of $2.1 billion, so there are few surprises in this morning’s announcement.  Nonetheless, confirmation of the forecast will help GM officials, including Liddell and his boss, CEO Dan Akerson, as they head out to win over potential investors who will be asked to support the anticipated $13 billion General Motors IPO.

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The maker has indicated it will seek between $26 and $29 per share during the initial public offering.  A specific date has yet to be announced, but industry insiders believe the stock sale will occur on November 18th.

As part of its bankruptcy-led restructuring, GM aimed to be able to break even at an annual North American sales rate of around 10.5 million.  While the industry has yet to post a significant recovery, the third quarter saw a modest upturn into the low 11-million range.  That generated revenues of $34.1 billion GM reported.