GM earns $2 billion, projects 2010 profit
General Motors reports its third straight profitable quarter despite losses in Europe.
By Ted Reed, TheStreet
General Motors reported net income attributable to stockholders of $2 billion in the third quarter, its third consecutive profitable quarter, and said it will be profitable for the full year.
Per-share earnings were $1.20. Earnings before interest and tax (EBIT) totaled $2.3 billion. The automaker expects to report positive EBIT in the fourth quarter but at a lower run rate than in each of the first three quarters.
Revenue was $34.1 billion.
"As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress," chief financial officer Chris Liddell said in a prepared statement.
The positive results come as GM prepares for an initial public offering as soon as next week. The company pre-announced third-quarter results on Nov. 3.
During the quarter, GM North America had EBIT of $2.1 billion, up from $1.6 billion in the second quarter. But like rival Ford (F), GM lost money in Europe during the quarter, with a loss before interest and taxes of $600 million vs. a loss of $200 million in the second quarter.
GM's international operations posted EBIT of $600 million, down from $700 million in the second quarter.
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Jun 18, 2007 ... GMAC, meanwhile, reported $48 billion in subprime loans, 76 percent of its total home-loan portfolio.~money.cnn
WS6 is trying to rewrite history!
Wagoner didnt want Chapter 11 to protect his stock holdings and ensure the burden of retirements gets passed onto the govt.
Ford is the only mfg to not need 11.
Then again, most companies didnt need it because months later they sold enough new shares to pay back the GOVT LOANS; something they could of easily done prior when their share price was higher.
SIGH
I see common senseless posts on this part of MSN as well and like everywhere else these fool posts what they say is nothing but BULL.
Blaming GM for subprime loans. GM NO LONGER OWNS A FINANCE COMPANY! Get that through your head already. GM just bought a finance unit and less than 5% of GMs sales have been to subprime borrowers while Ford, Toyota and Honda sit at around 30%. GM and Crapsler are both under 10%. That is hurting sales which is why GM bought a finance unit.
GM didnt screw over anyone. GM had a CEO that said NO BANKRUPTCY. Rick Wagoner said GM WILL NOT enter chapter 11 protection and Obama removed him to put in someone that would take GM into chapter 11. NOT GMs fault. The judge was the one that determined who got screwed. You really think the top execs wanted to take huge pay cuts? Yeah right. Even they suffered losses.
Just think about how much money GM would have made had they had their own finance unit seeing how of Fords 1.7 Billion profit $500 million was from their finance unit.
The company has repaid or plans to repay taxpayers $9.5 billion, and the government hopes to get back the remaining $40 billion with the Nov. 18 common stock offering and several follow-up sales.(Assoc Press)
Until an honest and accurate accounting, including ?FUND$? funneled in from taxpayers to pay off other tax funds is stated in a non-creative way, and GM mgmt is replaced, I wont stick even a toe into the GM pool.
FORD is @ $16+, so GM asking for more is @$%#!
Now if I can only get Chrysler to bring back the real DODGE CHALLENGER, not the inflated version...
SIGH
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