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GM Earnings Crushed by Recall Costs

"Nevertheless, we remained profitable," said CEO Barra.

by on Jul.24, 2014

Earnings on new full-size models, such as this 2015 Chevy Tahoe, should boost GM's earnings going forward, analysts forecast.

The fallout from the ignition switch recall and other safety-related problems cut deeply into General Motors’ profitability for the second quarter, the maker reported.

Net income for the March to June period tumbled to just $200 million, or 11 cents per share, compared to a $1.2 billion net for the second quarter of 2013. The GM balance sheet was hammered during the latest period by one-time costs, most of them related to ongoing recalls, as well as for setting up a new victims’ compensation fund. Earnings before the recall-related charges would have been 58 cents a share.

Beyond the Numbers!

“The ignition switch put tremendous pressure on our earnings,” GM chief executive officer Mary Barray told analysts and reporters. “But nevertheless we remained profitable.”

Barra also said the sweeping recalls, which so far this year cover 29 million units, have not deterred GM from pushing ahead with its effort to improve its competitive position around the world.


GM Revenue Up Slightly for Q4, Full Year

Maker paying profit sharing up $7,500 to hourly employees.

by on Feb.06, 2014

General Motors Co. (NYSE: GM) today reported 2013 calendar-year net income of $3.8 billion, or $2.38 per fully-diluted share.

While its revenue for the quarter and the year rose, General Motors reported its fourth-quarter earnings were flat and full-year earnings were down on a year-over-year basis due to special charges related to some of the company’s restructuring actions.

However, the company’s positive performance in North America buoyed its quarter and year and resulted in its eligible hourly employees expected to received profit sharing checks up to $7,500 each.

Performance Matters!

“Launches of some of the best vehicles in our history combined with significant improvements in our core business led to a solid year,” said GM CEO Mary Barra. “The tough decisions made during the year will further strengthen our operations. We’re now in execution mode and our sole focus will be on delivering results on a global basis.” (more…)

GM May Buy Back More Stock, Revive Dividend

“We’re getting stronger,” CEO Akerson declares.

by on Jun.07, 2013

GM's headquarters at the Detroit Renaissance Center.

General Motors investors have had a lot to celebrate in recent weeks watching the maker’s shares surge, the stock rejoining the influential S&P 500 – and now, with Chairman and CEO Dan Akerson suggesting the maker might be ready to restore the GM dividend for the first time since 2008.

Akerson also is weighing the possibility of buying back more GM shares, a move that could further drive up a stock that has nearly doubled since hitting a low point last July.

Auto News From a Source You Trust!

But, “First and foremost we must continue to invest in this company so we don’t lose the competitive edge that we have today,” Akerson told stockholders meeting in Detroit, an event where he declared the company’s bailout and revival a success.


How High is Up for GM Stock?

Maker will rejoin S&P 500 “before too long,” says CEO Akerson.

by on May.20, 2013

GM CEO Dan Akerson delivers the commencement address to Notre Dam business grads over the weekend.

Perhaps it’s just a rising tide lifting all boats, but General Motors stock has hit its highest close in more than two years – beating the $33 a share price tag set during its initial public offering in November 2010.

The resurgence comes as the overall stock market charges from one record to another, but also suggests that investors are impressed by the performance of the giant maker which earlier this month announced $865 million in earnings for the first quarter of 2013.

Geared Up for News!

Though it has now delivered 3 consecutive quarterly profits, GM is still in the “early innings” of its recovery,” CEO Dan Akerson said over the weekend in South Bend, Indiana, where he delivered the commencement speech for Notre Dame business school graduates.  GM is “on the cusp,” said the executive, of regaining its investment grade debt rating back.  Akerson also suggested in his speech that the maker will rejoin the S&P 500 “before too long.”


GM Earnings Dip 15% During 2nd Quarter

But maker still outperforms expectations.

by on Nov.09, 2011

“Our overall results underscore the work we have to do," said GM CEO Dan Akerson.

General Motors earnings dropped to $1.7 billion for the third quarter in the wake of more bad news from its European operations and disappointing results from South America.

GM’s third-quarter earnings, which worked out to $1.03 per share, compared with the $2 billion, or $1.20 per fully-diluted share, reported by the maker during the same period a year ago.  But that was still better than many analysts were anticipating for the July – September 2011 period.

Analysts polled by the tracking firm FactSheet predicted GM earnings for the latest quarter would only reach 94 cents per share.

A Profitable Source!

And the latest results mark the maker’s seventh consecutive quarterly profit since emerging from Chapter 11 bankruptcy protection in July 2009.  GM’s net revenue, meanwhile, increased by 8% to $36.7 billion, compared with the third quarter of 2010. Unit sales for the quarter rose 9%, to 2.2 million, largely on increased demand in China.

“GM delivered a solid quarter thanks to our leadership positions in North America and China, where we have grown both sales and market share this year. But solid isn’t good enough, even in a tough global economy,” said Dan Akerson, chairman and CEO.


GM Earnings Surge to $3.2 Billion

One-time earnings help GM push past rival Ford in Q1.

by on May.05, 2011

GM is "on plan," says CEO Dan Akerson.

With its bottom line boosted by one-time gains from asset sales, General Motors Co. more than tripled first-quarter earnings, posting a $3.2 billion, $1.77 a share, profit as the revenue from its global business grew by 15%.

“We are on plan,” said Dan Akerson, chairman and CEO.

“GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth,” Akerson said in a statement Thursday.

Stay on Top!

However, GM’s financial statement also showed that the company’s struggling European operations remained in the red and profits from the company’s European and South American operation declined in the first quarter of 2011.

The first quarter figures reflect GM’s controversial decision to heavily increase its incentive spending in the United States.  Though costly, the move appeared to pay off, boosting home market sales by 26%, to 592,545 cars, trucks and crossovers during the period.