GM posts first quarter profits of $3.2 billion

Discussion in 'Stock Market' started by Chris, May 5, 2011.

  1. Chris
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    Chris Gold Member

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    General Motors posted a $3.2 billion profit in the first quarter, which was also its first full quarter as a public company. Sales were $36.2 billion, up $4.7 billion from the quarter a year ago, GM said.

    Net income per share was $1.77. The profit was boosted by some one-time gains, particularly the sales of GM's stake in Delphi, its former parts unit, and its preferred shares of Ally Financial, the former GMAC captive finance unit. But even excluding those items, profit was $2 billion before interest and taxes, beating analysts expectations of about $1.6 billion and up from $1.7 billion in the quarter a year ago.

    It was a fifth consecutive profitable quarter, if you include quarters before it became a public company last November.

    General Motors posts $3.2 billion 1st-quarter profit - Drive On: A conversation about the cars and trucks we drive - USATODAY.com
     
  2. Zander
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    Zander Platinum Member

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    How much do they still owe the US Government Chris??
     
  3. editec
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    editec Mr. Forgot-it-All

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    Unless I've been misinformed, I don't think GM owes the government anything.

    The Government owns SHARES of GM which it can sell off.

    Seems to me a better move might be to pay off part of the $2.4 TRILLION the government owes the Social Security Trust fund, with those stocks, instead.

    But they cannot BY LAW, because the law says that the SSTF must purchase the safest bonds it can find, and we are still telling ourselves that the safest bonds to own are US bonds.

    Now isn't that a lovely way to rape the working class every paycheck such that they end up giving the money to the government so they can piss it away on tax breaks for billionaires and wars of imperialism.

    The bastards we are up against are NOBODY's FOOLS, folks.

    They can figure out ways to STEAL FROM THE WORKING CLASSES seven ways from Sunday.
     
    Last edited: May 5, 2011
  4. uscitizen
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    uscitizen Senior Member

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    I dunno but GM is hiring a few hundred at it's Bowling Green, KY plant.

    Seems like this GM thingy must have worked somewhat as a stimulus.

    TARP has created how many jobs?
     
  5. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    They are telegraphing rounds of "Cost Decreases" and "Price Initiatives". I'm translating that into another round of Taxpayer Funded Subsidies (Rebates) to prop them up.

    The company’s global market share came in at 11.5%, the same as in the first quarter but above the 11.1% share it held in the first quarter of 2011. GM North America’s share fell to 18.3% from 18.5% in the fourth quarter, including a drop to 19% from 19.1% in the U.S.

    Earnings before interest and taxes in North America rose to $2.9 billion from $1.2 billion the previous year, helped by volume and mix but hurt by price and costs. The company said it will get a better boost from prices in the second quarter, but volume will be flat and mix could be somewhat weaker. But the company posted a $400 million EBIT loss in Europe.

    “In Europe our restructuring is starting to take hold,” the company said on its earnings call, and GM said its full-year Europe adjusted EBIT would be break-even after excluding restructuring costs.

    The company also faces other pressures, including increasing materials and commodity costs; GM said on the conference call that it would try to offset higher commodity costs with cost reductions in other areas. The company also said it will also use “price initiatives” to make up for the higher costs. “We will do our best to offset that as much as possible.”


    GM Beats Expectations as Profit Triples; U.S. Market Share Dips; Shares Dropping Early - Stocks To Watch Today - Barrons.com
     
  6. Skull Pilot
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    Skull Pilot Platinum Member

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    How come you aren't outraged at such an enormous profit?

    If it were Exxon you would be.
     
  7. Chris
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    Chris Gold Member

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    Because what's good for GM is good for America.

    What's good for Exxon is bad for America.
     
    Last edited: May 5, 2011
  8. Cuyo
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    Cuyo Training a Guineapig army

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    Technically speaking? Nothing.
     
  9. Zander
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    Zander Platinum Member

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    You are misinformed. They owe TARP billions. Billions that we will never, ever see.
     
  10. Toronado3800
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    Toronado3800 VIP Member

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    An interesting situation. GM does sort of still owe the government money and they sort of paid off what they were lent.

    We are sort of lending them more money in the same way TIFF creates money for developers to use. Of course that is an alnost independent situation. Ish.

    Guess the powers of the big two political parties can not imagine an America sucks enough to have only one domestic automobile manufacturer.

    Oh well. The present GM is interesting. Running a company in the black after walking away from the debt of the greatest generation is a step. Of course I whined when Monsanto created Solutia to walk away from its problems.

    I dont know if I am brave/radical enough to have let GM fail. Conservative is me I suppose. Funny thing is it gets me tied up in all this creative liberal capitalist Wall Street accounting.
     

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