GM Retiree eNews - May 17, 2010 |
This Issue |
Message from Ed Whitacre |
This morning (May 17), GM filed its first quarter 2010 results, and I am pleased to tell you that we are reporting net income of $0.9 billion, cash flow from operating activities of $1.7 billion, and diluted earnings per share of $1.66. In other words, we are making money again, and that is a solid sign of progress as we work to make GM a great company. We still have more work ahead to rebuild consumer confidence and grow the business in an uncertain global economy. To accomplish that, we need to deliver on our mission of designing, building and selling the world’s best vehicles. Meantime, it’s good to know that we are moving forward. I want to thank you for your hard work and dedication to General Motors. I appreciate your contributions, and hope for more good news like this in the months and years ahead. Ed Whitacre |
GM Reports First Quarter 2010 Results |
GM achieves net income of $0.9 billion and EPS of $1.66 |
General Motors Company today announced its first quarter 2010 results, marked by revenue of $31.5 billion and operating income of $1.2 billion. Net income attributable to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66. GM’s first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand. GM North America had EBIT in the first quarter 2010 of $1.2 billion, up from a loss of $3.4 billion in the fourth quarter 2009. GM Europe had a loss before interest and taxes of $0.5 billion; an improvement of $0.3 billion from the fourth quarter. GM International Operations posted EBIT of $1.2 billion, up $0.5 billion from the fourth quarter. Cash flow from operating activities was $1.7 billion and after adjusting for capital expenditures of $0.7 billion, free cash flow was $1.0 billion. GM ended the first quarter with $35.7 billion in cash and marketable securities, including funds in escrow. “We’re pleased with our first quarter performance, in particular achieving profitability,” said Chris Liddell, vice chairman and chief financial officer. “In North America we are adding production to keep up with strong demand for new products in our four brands. We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet. These are all important steps as we lay the foundation for a successful GM.” To see the Q1 2010 highlights, click here. |
What Does This Mean for GM? |
Key take-aways:
Q: What do these results mean? Q: What is GM’s financial outlook for the remainder of the year? Q: Since the company is privately held, why did GM report an Earnings Per Share number? Q: What about my old shares from before the bankruptcy? Q: Can you give us a perspective on IPO timing and what has to get done between now and then? |
On the Internet |
To see Phil LeBeau reporting on GM Q1 2010 Results, click here. To see MSN's Phil LeBeau interviews GM CFO Chris Liddell, click here. To see an interview with Wall Street Journal Detroit Bureau Chief Neal Boudette by clicking here. |
In the News |
GM posts $865M first quarter profit, its first in 3 years |
Robert Snell / The Detroit News
Operating income was $1.2 billion from January through March, during which time GM posted revenue of $31.5 billion, a 40 percent increase. GM also generated $1 billion in free cash flow during the quarter. The $1.66 per-share profit compared to a $6 billion net loss a year earlier, or $9.78 per share, as GM teetered on the brink of bankruptcy. Read More>> |
GM Back in the Black |
Chris Isidore / CNNMoney.com General Motors returned to profitability in the first three months of the year, the automaker reported Monday, its first profit since 2007. The company, which emerged from bankruptcy last July, earned $865 million in the period, on revenue of $31.5 billion. A year ago the predecessor company lost nearly $6 billion on revenue of only $22.4 billion, as sales plunged and the company hurtled toward bankruptcy. GM had reported losses the two previous quarters since emerging from bankruptcy, but the profit in the most recent period was expected. The carmaker was able to cut costs as part of the bankruptcy reorganization, and sales have improved during the quarter, boosted by an improving U.S. economy and problems at Toyota Motors (TM). GM's first-quarter profits still trailed those of rivals Toyota and Ford Motors during (F, Fortune 500) the same period. Read More>> |
GM Posts First-quarter Profit |
Kevin Krolicki and David Bailey / Reuters General Motors Co posted a first-quarter profit on Monday and said it is making progress toward a turnaround expected to put it on track toward its first full-year profit since 2004. Chris Liddell, GM's chief financial officer, said the first-quarter results showed that the top U.S. automaker was making progress and had a "good chance" of turning a full-year profit. But he declined to offer any forecast for the remainder of the year and said that while an initial public offering was possible over the next year, the timing remained uncertain. "Now that we have achieved profitability, the next step is to achieve sustainable profitability," Liddell told reporters at GM's Detroit headquarters. GM received $50 billion of U.S. government financing for its restructuring in bankruptcy and has been aiming to launch an initial public offering that would allow the U.S. government to reduce its majority stake in the automaker later this year. Read More>> |
GM Rides Cost Cuts, New Model Sales to 1Q profit |
Tom Krisher and Dee-Ann Durbin / AP Auto Writers General Motors Co. rode expense cuts from its bankruptcy and strong sales of redesigned models to its first quarterly net income in nearly three years, drawing the company closer to a stock offering that would repay at least part of its government aid. The $865 million first-quarter profit is a dramatic reversal from the huge $6 billion loss in the same period last year. The last time the company made a quarterly profit was the second quarter of 2007, when it earned $891 million. The Detroit automaker said it made money because debt and other expenses were slashed by its stay in bankruptcy court, and because of strong new-model sales. It also generated higher revenue from growth in Asia and South America. The earnings of $1.66 per share from January through March are stunningly different from the first quarter of last year, when the largest U.S. automaker lost $9.78 per share as it skidded into bankruptcy protection. First-quarter revenue soared 40 percent to $31.5 billion. Read More>> |
GM Posts Its First Profit in 3 Years as Sales Rise 40 Percent |
Nick Bunkley / The New York Times
GM said revenue was up 40 percent, to $31.5 billion, and it had positive cash flow of $1 billion. The results show that GM is on track to become a public company again as soon as the fourth quarter, allowing the government to recover more of the billions of dollars it spent preventing GM’s collapse. The company earned $1.2 billion before interest and taxes in North America, the region where GM had sustained most of its losses in recent years. In the fourth quarter, GM lost $3.4 billion in North America. Worldwide, GM earned $1.7 billion before interest and taxes. Read More>> |
General Motors Co. made $865 million during the first quarter -- its first quarterly profit in almost three years -- in a show of progress made possible by a rebound in sales and the company's bankruptcy filing, which helped GM shed billions in liabilities and lower its break-even point. 
General Motors said Monday it earned $865 million in the first quarter, its first profit since 2007, after last year’s government-sponsored bankruptcy allowed the carmaker to wipe away many of its longstanding burdens.