GM Announces Third Quarter 2010 Results

[Drew Dowdell]

GM achieves third consecutive quarter of profitability and positive cash flow

Net income of $2.0 billion, earnings per share of $1.20

DETROIT, Mich. – General Motors Company today announced that for the third quarter ending September 30, 2010, the company generated:

• Revenue of $34.1 billion
• Net income attributable to common stockholders of $2.0 billion
• Earnings per share on a fully diluted basis and adjusted for 3-1 stock split of $1.20
• Earnings before interest and tax (EBIT) of $2.3 billion
• Net cash flow from operating activities of $2.6 billion
• Free cash flow of $1.4 billion

"As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress," said Chris Liddell, vice chairman and chief financial officer.

GM North America had EBIT in the third quarter 2010 of $2.1 billion, up from $1.6 billion in the second quarter. GM Europe had a loss before interest and taxes of $0.6 billion, down from a loss of $0.2 billion in the second quarter. GM International Operations posted EBIT of $0.6 billion, down from $0.7 billion in the second quarter.

Net cash flow from operating activities was $2.6 billion and after adjusting for capital expenditures of $1.2 billion, free cash flow was $1.4 billion.

GM expects to also report positive EBIT for the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, and profitable year-end results for calendar year 2010.

[NINETY EIGHT REGENCY]

GM posts Q3 net income of $1.96 billion in advance of IPO

James B. Treece

Automotive News -- November 10, 2010 - 7:37 am ET

DETROIT -- General Motors Co., in its final financial snapshot before next week's initial public offering, posted third quarter net income of $1.96 billion on revenues of $34.06 billion.

The results, released today, were in line with a forecast issued last week. In the third quarter of 2009, GM posted a $1.2 billion loss after going through a U.S.-funded overhaul in bankruptcy court.

GM now has earned $4.16 billion on revenues of $98.71 billion so far in 2010 -- a dramatic swing after five consecutive years of annual losses. The automaker expects profitability to fall in the fourth quarter because of higher new-product development and vehicle-launch costs. The latter includes those for the Chevrolet Volt and Cruze.

“As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress,” CFO Chris Liddell said in a statement.

Through October, GM's U.S. sales are up 6 percent to 1.8 million units. The company has lost share in an overall market that is up 11 percent.

Most of GM's market share losses stem from the sale of Saab and the elimination of the Pontiac, Hummer and Saturn brands.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101110/OEM/101119995/1179#ixzz14t0FLK9f

[NINETY EIGHT REGENCY]

General Motors posts $2 billion Q3 gain

Christina Rogers / The Detroit News

General Motors Co. today reported a third-quarter net income of $2 billion — its third consecutive quarter in the black — as the Detroit automaker prepares to begin selling its stock on the New York Stock Exchange Nov. 18.

The company's performance was up from the second quarter, when it reported $1.33 billion in net income, putting the automaker on track for its first profitable year since 2004. Revenue also climbed in the third quarter, to $34.1 billion, up from $33.2 billion in the second quarter.

The automaker reported net operating cash flow of $2.8 billion in the third quarter and free cash flow of $1.4 billion. In the second quarter, GM reported a free cash flow of $2 billion.

"As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress," Chris Liddell, vice chairman and chief financial officer, said in a statement issued by the automaker this morning.

Also in the third quarter, GM's North American operations had a pretax profit in the third quarter of $2.1 billion, up from $1.6 billion in the second quarter.

GM Europe posted a pretax loss of $600 million, compared to a $200 million European loss in the second quarter. The GM's International Operations reported a profit of $600 million before interest and taxes but that was down from a pretax profit of $700 million in the second quarter.

GM executives expect the post-bankruptcy company to earn money in the fourth quarter, as well, before interest and taxes, but expect it to be less than previous quarters.

With these latest results, GM continues its money-making streak, having exited bankruptcy last year, with year-to-date earnings for 2010 totaling $4.2 billion after taxes and interest.

They come at a crucial time for the automaker, as its executives travel to Canada, Europe and to major cities in the United States trying to drum up interest among big institutional investors in next week's initial stock sale.

GM said last Wednesday it will sell 365 million shares priced between $26 and $29 a share. A final strike price for the offering will be announced Nov. 17, with trading beginning the next day.

From The Detroit News: http://www.detnews.com/article/20101110/AUTO01/11100380/1148/General-Motors-posts-$2-billion-Q3-gain#ixzz14t4hVavw

[NINETY EIGHT REGENCY]

GM posts $2-billion profit in 3Q

BY CHRISSIE THOMPSON

FREE PRESS BUSINESS WRITER

General Motors today posted a $2 billion third-quarter profit off revenue of $34.1 billion in its last financial report before its planned Nov. 18 return to the stock market.

GM previously said it would report a $1.9 billion to $2.1 billion gain for the quarter and promised its first full-year profit since 2004.

The net profit mostly came from a $2.1 billion gain in North America, up from $1.6 billion in the second quarter and $1.2 billion in the first quarter.

GM’s international region, which includes hot Asian markets, posted a $646 million profit, which is down from $672 million in the second quarter and $1.2 billion in the first quarter. GM’s problematic Europe region also deepened its losses to $559 million, compared with $160 million in the second quarter.

Through its quarterly earnings, GM’s third in a row, the company is seeking to convince investors it has eliminated the problems that led to four-straight annual losses totaling $82 billion before its 2009 bankruptcy. GM restructured on $50 billion in federal aid, and the stock sale will allow taxpayers to start recouping the $40 billion that was converted into a 61% stake in GM.

“Eighteen months ago, nobody expected any taxpayer money to get paid back,” said Rebecca Lindland, an analyst with IHS Automotive.

GM’s worldwide market share slipped to 11.5% from 11.8% a year earlier. That’s mostly due to a one-point market share loss in North America, where GM has sold or wound down four of its eight brands.

GM’s operations generated $2.6 billion in cash. After capital expenditures of $1.2 billion, free cash flow was $1.4 billion.

The quarterly earnings nearly match GM’s profit from the first half of the year, along with the $2.1 billion quarterly profit Ford has averaged so far this year. Ford gained $6.4 billion in through September, compared with GM’s $4.2 billion. GM posted profits of $865 million in the first quarter and $1.3 billion in the second.

GM said its fourth-quarter earnings before interest and taxes would be lower than each of the first three quarters. The automaker had previously said that was due to a different production mix, the cost of launching new vehicles such as the Chevrolet Cruze and Volt and higher engineering expenses.

The automaker has said annual profits will continue. Chief Financial Officer Chris Liddell said last week in an online investor video GM will be able to make $11 billion to $13 billion before interest and taxes in a moderate sales year and $17 billion to $19 billion when sales are at their peak.

That’s largely because GM’s bankruptcy restructuring lowered its break even from at least 15.5 million in U.S. sales to sales of 10.5 million to 11 million vehicles, Liddell said. U.S. light-vehicle sales totaled 10.4 million in 2009 but were often in the 16 million range before the recession.

In the initial public offering next week, the U.S. Treasury is selling about a third of its 61% equity stake in GM at a loss. The government is hoping the stock’s value rises enough in the future to allow taxpayers to break even on the total investment when it sells the rest of its shares.

link:

http://www.freep.com/apps/pbcs.dll/article?AID=/20101110/BUSINESS0101/101110028/1331/business01/GM-posts-2-billion-profit-in-3Q&template=fullarticle

[ZL-1]

Net cash flow from operating activities was $2.6 billion and after adjusting for capital expenditures of $1.2 billion, free cash flow was $1.4 billion.

Good stuff!

[NINETY EIGHT REGENCY]

General Motors announces Q3 profit of $1.96 billion ahead of IPO

by Zach Bowman (RSS feed) on Nov 10th 2010 at 9:29AM

General Motors posted its last financial report before the company's initial public offering of stock next week. In it, the company reported that in the third quarter of 2010, it earned a net income of $1.96 billion on a total of $34.06 billion in revenue. That puts the automaker's 2010 figures at $4.16 billion of net income on $98.17 billion in revenue, though GM does say that it expects earnings to fall in the fourth quarter thanks to costs associated with developing new vehicles and launching products like the Chevrolet Volt and Cruze.

The GM numbers put the company ahead of both Ford, which posted a third-quarter profit of $1.7 billion and Chrysler, which recently announced a net loss of $84 million for the same time period.

GM has seen sales climb by six percent so far this year, even while losing around 11 percent of its market share thanks to the sale or demise of brands like Hummer, Saab, Pontiac and Saturn. Hit the jump for the full press release.

[sources: Automotive News, GM]

Show full PR text

GM achieves third consecutive quarter of profitability and positive cash flow

Net income of $2.0 billion, earnings per share of $1.20

DETROIT, Mich. – General Motors Company today announced that for the third quarter ending September 30, 2010, the company generated:

Revenue of $34.1 billion

Net income attributable to common stockholders of $2.0 billion

Earnings per share on a fully diluted basis and adjusted for 3-1 stock split of $1.20

Earnings before interest and tax (EBIT) of $2.3 billion

Net cash flow from operating activities of $2.6 billion

Free cash flow of $1.4 billion

"As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress," said Chris Liddell, vice chairman and chief financial officer.

GM North America had EBIT in the third quarter 2010 of $2.1 billion, up from $1.6 billion in the second quarter. GM Europe had a loss before interest and taxes of $0.6 billion, down from a loss of $0.2 billion in the second quarter. GM International Operations posted EBIT of $0.6 billion, down from $0.7 billion in the second quarter.

Net cash flow from operating activities was $2.6 billion and after adjusting for capital expenditures of $1.2 billion, free cash flow was $1.4 billion.

GM expects to also report positive EBIT for the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, and profitable year-end results for calendar year 2010.

Filed under: GM, Earnings/Financials

link:

http://www.autoblog.com/2010/11/10/general-motors-announces-q3-profit-of-1-96-billion-ahead-of-ipo/

[NINETY EIGHT REGENCY]

European loss burdens GM's bright Q3 results

Paul McVeigh

Automotive News Europe -- November 10, 2010 14:43 CET

General Motors Co.'s European operations posted a wider loss in the third quarter compared to the previous quarter, blighting otherwise bright results ahead of the U.S. automaker's initial public offering next week.

GM Europe's third-quarter loss was $559 million before interest and taxes, more than double the $160 million in the three months ended June 30. GM Europe lost $1.2 billion on an Ebit basis in three quarters this year.

Helped by an accelerating turnaround in North America, GM posted third-quarter net income of $1.96 billion on revenues of $34.06 billion. In the third quarter of 2009, GM posted a $1.2 billion loss after going through a U.S.-funded overhaul in bankruptcy court.

GM Chief Financial Officer Chris Liddell said the European loss largely stemmed from a normal industrywide reduction in volumes during the summer period. The launch of the new Opel/Vauxhall Meriva and an increase in Chevrolet sales in Europe, as well as favorable foreign exchange rates, had helped limit the loss, he said on a conference call with analysts and journalists on Wednesday.

GM CEO Dan Akerson said: “We know we have much more work to do. We still need to fix Europe. We continue to be vigilant in reducing cost in the enterprise, and we have just started doing a better job in marketing our brands to consumers.”

GM Europe unit sales were 391,000 in the third quarter ending Sept. 30, down from 409,000 the year before. Nine-month volume was 1.24 million, down from 1.3 million the year before.

Opel/Vauxhall sales were 272,000 for the third quarter, down from 299,000 the year before. Nine-month volume was 881,000, down from 944,000.

Chevrolet Europe's sales increased to 118,000 in the quarter from 103,000 the year before, helped by the introduction of the new Spark minicar.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101110/ANE/101119994/1193#ixzz14tXr9xXE

[Drew Dowdell]

“What's good for GM is good for America” used to be just a slogan. It might even have been true.

[NINETY EIGHT REGENCY]

General Motors posts $2 billion Q3 gain

Christina Rogers / The Detroit News

Detroit — General Motors Co. today reported a third-quarter net income of $2 billion — its third consecutive quarter in the black — as it prepares to begin selling its stock on the New York Stock Exchange Nov. 18.

The company's performance was up from the second quarter, when it reported $1.33 billion in net income, and is a reversal of its deep third-quarter loss last year of $1.15 billion. The results put the Detroit-based automaker on track for its first profitable year since 2004. Revenue also climbed in the third quarter to $34.1 billion, up from $33.2 billion in the second quarter of 2010 and an increase from $28 billion in the third-quarter in 2009.

"We've arrived here because we continue to deliver on our major business objectives," said CEO Daniel Akerson. "We've increased our global market share relative to the first quarter. On a year-to-date basis, we've sold more vehicles in the U.S. with four brands than we did last year with eight brands."

Akerson attributed the third-quarter profit to the company's success in reducing cost in North America, so it can continue making money when industry sales are low, as well as its strong sales position in emerging markets of China, India, Brazil and Russia.

Operating income for the quarter that ended Sept. 30 increased to $1.9 billion from $1.8 billion in the second quarter, despite sales softening globally for GM and growing losses from its European operations. GM Europe posted a pretax loss of $600 million, compared to a second-quarter loss of $200 million.

"We know we have much more work to do," Akerson said. "We still need to fix Europe."

GM's global market share fell slightly in the third quarter to 11.5 percent, from 11.6 percent in the previous quarter.

The company's international operations reported a profit of $600 million before interest and taxes, but that was down from $700 million in the second quarter.

North American operations posted a pretax profit of $2.1 billion, up from $1.6 billion in the second quarter.

The automaker reported net operating cash flow of $2.6 billion in the third quarter and free cash flow of $1.4 billion, compared to free cash flow of $2 billion in the second quarter. In the third quarter 2009, GM reported $3.3 billion in operating cash flow.

GM's debt grew in the third quarter to $8.6 billion from $8.2 billion in the previous quarter. Its underfunded pension obligations also increased in the last quarter, to $29.4 billion from $26.4 billion in the second quarter.

Analysts have pointed to underfunded pensions as a concern for potential investors, although GM said last month it would make a contribution of at least $6 billion in cash and stock to the plans, in hopes of tidying up its balance sheet.

GM executives expect the post-bankruptcy company to earn money in the fourth-quarter, as well, before interest and taxes, but it will be less than previous quarters.

With these latest results, GM continues its money-making streak, having exited bankruptcy last year, with year-to-date earnings for 2010 totaling $4.2 billion after taxes and interest.

They come at a crucial time for the automaker, as its executives travel to Canada, Europe and to major cities in the United States, trying to drum up interest among big institutional investors in next week's initial stock sale.

GM said last Wednesday it will sell 365 million shares priced between $26 and $29 a share. A final strike price for the offering will be announced Nov. 17, with trading beginning the next day.

From The Detroit News: http://detnews.com/article/20101110/AUTO01/11100380/General-Motors-posts-$2-billion-Q3-gain#ixzz14wGRGvwA

[NINETY EIGHT REGENCY]

GM's 3Q profit to be its 3rd in a row

Report may sway IPO investors

By CHRISSIE THOMPSON

Free Press Business Writer

Today, General Motors reports third-quarter earnings that are expected to nearly match its profit from the first half of the year.

It is GM's last financial report before the automaker's planned return to the stock market Nov. 18 -- a chance to convince investors that GM has eliminated the problems that led to four-straight years of losses, totaling $82 billion, that led it into bankruptcy.

Today's quarterly profit will be GM's third in a row. But is that enough?

"It's not so much whether they've had three, four or five quarters of earnings," said Matt Therian, an IPO analyst at Renaissance Capital in Greenwich, Conn. "It's more whether they can convince investors that those earnings are stable."

GM said last week it expected to post $1.9 billion to $2.1 billion in third-quarter net income. The automaker also said it expects the fourth quarter to generate positive earnings before interest and taxes. That would lead to its first full-year profit since 2004.

And GM has said profits will continue. Chief Financial Officer Chris Liddell said last week in an online investor video that GM will be able to make $11 billion to $13 billion before interest and taxes in a moderate sales year and $17 billion to $19billion when sales are at their peak.

That's largely because GM's bankruptcy restructuring lowered its break-even from at least 15.5 million in U.S. sales to sales of 10.5 million to 11million vehicles, Liddell said. U.S. sales of light vehicles totaled 10.4 million in 2009 but were often in the 16-million range before the recession.

If GM delivers on the high end of its third-quarter profit forecast, it could match the $2.1-billion quarterly profit Ford has averaged this year. GM's quarterly results have improved this year, from $865 million in the first quarter to $1.3 billion in the second.

In the IPO next week, the U.S. government will start recouping the remaining $40 billion of its $50-billion investment in GM by selling some of its GM stake.

Read more: GM's 3Q profit to be its 3rd in a row | freep.com | Detroit Free Press http://www.freep.com/article/20101110/BUSINESS01/11100424/GM-s-3Q-profit-to-be-its-3rd-in-a-row#ixzz14wKDDyzI