Detroit Bureau on Twitter

Posts Tagged ‘gm profit’

GM Earnings Tumble on Weakening U.S. Demand, Sale of European Ops

But numbers manage to beat Wall Street expectations.

by on Jul.25, 2017

GM CEO Mary Barra: "discipline" pays off.

General Motors reported second-quarter net income of $2.4 billion, down about 15% year-over-year, reflecting a variety of headwinds, including weakening U.S. sales, as well as the sale of the maker’s European Opel Vauxhall unit to France’s PSA Group.

On a per-share basis, GM came in at $1.60, though that rose to $1.89 by excluding  one-time charges, well ahead of the $1.68 consensus forecast by automotive analysts polled by FactSet. As a result, the maker’s shares began trading up slightly in early morning trading.

Breaking News!

GM’s declining net earnings came as no surprise, especially considering the ongoing slump in U.S. new vehicle demand. It reported an overall 5% decline in June, continuing this year’s overall downward trend. In recent months, the automaker has voluntarily cut back on low-profit fleet sales, but June’s retail numbers were also down 3% for June.

(more…)

GM Beats Estimates as Earnings Rise 34%

Pickups, SUVs and CUVs deliver.

by on Apr.28, 2017

Keep on trucking: General Motors' light trucks helped the maker drive a big surge in earnings.

General Motors’ fleet of big pickups and SUVs helped the automaker overcome all obstacles for the first quarter of 2017, earnings rising 34% to handily top Wall Street’s expectations and set a new quarterly record.

With a net income of $2.6 billion, GM was the last of the three Detroit-based automakers to report 1Q earnings and one of two to outperform market forecasts. Only Ford, which was off by 35%, posted a year-over-year decline – though it also benefited from booming demand for high-profit light trucks.

By the Numbers!

“We are executing our plan and it’s delivering results,” Chief Financial Officer Chuck Stevens said during a Friday morning news conference at General Motors headquarters. “This sets us up for another strong year.”

(more…)

GM Earnings Dip, But Still Beat Expectations

Workers to take home record $12,000 in profit-sharing.

by on Feb.07, 2017

GM earnings, especially in the U.S., reflected growing demand for SUV and pickups.

One-time charges took a toll on GM’s 2016 earnings, but the maker still managed to beat expectations for the full year, it reported Tuesday morning.

And booming North American demand for high-margin pickups and sport-utility vehicles translates into good news for U.S. workers. Hourly employees represented by the United Auto Workers Union will take home an average $12,000 in profit-sharing, an all-time record.

Subscribe Now!

“It was just a truly outstanding year,” GM Chief Financial Officer Chuck Stevens said, adding that despite concerns U.S. sales will slip slightly, “We expect 2017 to be a very strong year from a company perspective and another year of 10% or more in profit margins in North America.”

(more…)

Slowing Sales Fail to Damper GM as Earnings Set Record

Q3 numbers suggest focus on retail market is paying off.

by on Oct.25, 2016

GM CEO Mary Barra: "Determin(ed) to deliver earnings and enhance shareholder value."

(This story has been updated to reflect comments made by GM officials during an earnings conference call.)

General Motors earnings more than doubled during the third quarter to a record $2.77 billion, or $1.76 a share, despite slowing demand in the U.S. market.

But the maker says it benefited from a shift in focus away from low-profit fleet sales to the more lucrative retail market, as well as a rebound in the Chinese automotive market.

Earnings News!

The Detroit maker handily outperformed Wall Street’s expectations. Excluding a one-time gain, GM earned $1.72 a share for the quarter compared with a consensus forecast of $1.46. In a statement, the automaker credited “robust retail sales in the United States, strong performance in China, growth in wholesale volume and effective cost performance.”

(more…)

GM Q2 Earnings More Than Double Even as Sales Slip

Globe’s 3rd-largest automaker ups full-year forecast.

by on Jul.21, 2016

GM has been rushing out an assortment of new models, including a remake of the Chevy Malibu.

General Motors saw its second-quarter profit more than double, reaching a record $2.87 billion, the maker announced on Thursday, handily beating Wall Street expectations.

The surge came despite the fact that GM has seen sales slip in recent months – even while the overall U.S. car market continues to grow. The results appear to validate the strategy of trimming back on lower-profit rental and other fleet sales in favor of growing the retail side of the sales ledger.

Breaking News!

“This was an outstanding quarter for GM,” said Chairman and CEO Mary Barra. “Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving the performance of our operations worldwide. We’ll continue to focus on driving profitable growth and leveraging our technical expertise to lead in the future of personal mobility.”

(more…)

Ford Expects Record Profits; GM Sees Own Earnings Growth

Makers increase returns to shareholders; GM boosts stock buyback program.

by on Jan.13, 2016

Ford CEO Mark Fields showing off a new piece of technology at CES last week.

Investors take notice: while the stock market hasn’t been kind to the auto industry in recent weeks – or just about anyone else, for that matter – Detroit’s two largest carmakers are making some upbeat projections for 2016 that could make nervous shareholders happy.

Ford Motor Co. now expects to close the books on 2015 with a record pre-tax profit, with 2016 numbers to be “equal to or higher.” And GM is boosting its own earnings outlook for 2016. Both companies now plan to up their cash payouts to shareholders, while GM is expanding its ongoing stock buyback program.

Insight!

“This pattern of strong returns gives us a great platform to build on as we enter the year with a focus on strengthening our core business and engaging aggressively in emerging opportunities through Ford Smart Mobility,” said Ford CEO Mark Fields, in a statement detailing Ford’s forecast.

(more…)

Driven by U.S. Demand, GM Nets $1.4 billion in Q3

Earnings before taxes hit record. But numbers could cause problems.

by on Oct.21, 2015

GM's Detroit headquarters, the Renaissance Center.

Surging demand in its home market helped General Motors deliver a strong third-quarter profit, offsetting the impact of weakening sales in China.

The largest of the Detroit automakers said Wednesday morning that it earned $1.4 billion in net income, or $0.84 a share. That compared with $1.4 billion, or $0.81 a share a year ago. On an EBIT, or earnings before interest and tax, basis GM had an adjusted profit of $3.1 billion, and an adjusted profit margin of 8.0% percent.

Breaking News!

The strong numbers could generate new interest on Wall Street, at least GM officials are hoping. The maker’s stock has languished in recent months, around the same price set during its November 2010 IPO. But there could be a downside. The strong third quarter could motivate bargainers for the United Auto Workers Union who are trying to hammer out a new four-year contract with GM.

(more…)

Hammered by Recalls, GM in the Black – Just Barely

Maker suffers 85% drop in January - March earnings.

by on Apr.24, 2014

GM managed to keep itself in the black for the first quarter, after covering hefty recall-related expenses.

After writing down more than $1.3 billion to cover the cost of a burst of embarrassing recalls, General Motors saw its earnings for the first quarter of 2014 fall by more than 85%, it reported today, though it was still able to squeak out a modest profit.

The $125 million net earnings, at 6 cents per share, came in under the 9 cents consensus among top industry analysts. Some were even more bearish, Brian Johnson, of Barclays Plc, forecasting a one cent loss for the January to March quarter. But the crisis that began with the recall of 800,000 vehicles due to a faulty ignition switch in mid-February – and which ultimately saw GM call back nearly 7 million vehicles by the end of March – is likely to take its toll for some time to come.

By the Numbers!

“The performance of our core operations was very strong this quarter, reflecting the positive response of customers to the new vehicles we are bringing to market,” said GM CEO Mary Barra, in a statement aimed at putting a positive spin on the results. “Our focus remains on creating the world’s best vehicles with the highest levels of safety, quality and customer service, while aggressively addressing our business opportunities and challenges globally.”

(more…)

Both GM, Ford Expected to See Sharp Drop in Q1 Earnings

GM likely to take major hit as it pays for nearly 7 million recalls.

by on Apr.23, 2014

GM CEO Mary Barra will see a sharp decline in earnings for her first full quarter as CEO.

The numbers aren’t likely to look very good when General Motors and Ford Motor Co. release their first-quarter earnings results this week, both makers expected to post sharp declines from year-ago levels.

Ford had signaled a likely slide late last year as a result of the numerous new product launches it will have in 2014. But GM’s anticipated downturn is likely to be significantly greater than first forecast as a result of its on-going recall problems – an issue expected to continue to haunt new CEO Mary Barra for some time to come.

Breaking News!

A consensus of industry analysts forecasts GM will deliver a meager 9 cents per share in earnings for the first three months of 2014, and Brian Johnson, an automotive analyst with Barclays Plc is even more bearish, predicting the U.S. giant will go a penny into the red. Prior to the announcement of GM’s initial ignition switch recall in mid-February, Johnson was looking at a profit of 20 cents, which would still have been down sharply from the 67 cents per share it earnings during the first quarter of 2013.

(more…)

GM Forecasts Profits to Rise in 2014

Maker credits new vehicles and general growth in global auto sales.

by on Jan.15, 2014

GM President Dan Ammann during the unveiling of the new Corvette Z06 on Monday.

With a new management team today taking office, its first dividend planned in nearly six year, and its stock already on the rise, General Motors has yet more news likely to make investors happy, the Detroit maker forecasting that its earnings are likely to rise “modestly” in 2014.

The maker credits a variety of factors that include an improving outlook for the overall global auto industry – but primarily due to a wave of its own new products that it hopes will yield increased sales and market share in key markets.

Automotive Insight!

“We continue to perform well in the two most important markets in the world, the U.S. and China,” said Mary Barra, who took over as GM’s new CEO today. “We’re taking advantage of our strength in these countries to restructure and make the investments necessary to grow profitably in other parts of the world.”

(more…)