Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • Mid-Year Report 2022
    • RUSSIA WAR IN UKRAINE
  • Aligning with ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
November 11, 2010 01:00 AM

GM posts third straight quarterly profit in advance of IPO

James B. Treece, Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    DETROIT (Nov. 11, 2010) — General Motors Co., in its final financial snapshot before next week's initial public offering (IPO), posted third quarter net income of $1.96 billion on revenues of $34.06 billion.

    The results, released Nov. 10, were in line with a forecast issued last week. GM now has earned $4.16 billion on revenues of $98.71 billion through three straight profitable quarters this year—a dramatic swing after five consecutive annual losses.

    The auto maker 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.

    “The results of the third quarter clearly point to the amount of progress GM has made,” CEO Dan Akerson said in a conference call. An accelerating turnaround in North America contributed to the performance.

    In the third quarter of 2009, GM posted a $1.15 billion loss after going through a U.S.-funded overhaul in bankruptcy court.

    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.

    GM's results topped rival Ford Motor Co's $1.7 billion third-quarter profit. Chrysler Group L.L.C., which exited its U.S.-steered bankruptcy a month before GM, had a third-quarter operating profit of $239 million and a net loss of $84 million.

    GM said it expects to report positive earnings before interest and taxes in the fourth quarter, but “at a significantly lower run rate” than each of the first three quarters, and expects to be profitable for all of 2010.

    Mr. Akerson cited several accomplishments:

    • “We have significantly lowered our cost base.”
    • “We have the No. 1 market share position in the combined BRIC markets” of Brazil, Russia, India and China.
    • And so far this year, GM has “sold more vehicles with four brands than last year with eight brands.”

    On the other hand, Mr. Akerson said, “We've just started to do a better job in marketing our brands to consumers” and “we need to fix Europe.”

    GM posted profits before interest and tax payments of $2.28 billion, and net cash flow from operating activities of $2.62 billion in the third quarter. Operating income came to $1.85 billion.

    In its release, and in an online presentation to analysts and media, GM cited net income “attributable to common stockholders” of $1.96 billion. In addition, GM's earnings statement gave a figure of $2.16 billion as net income “attributable to stockholders.” The difference: $203 million in cumulative dividends on preferred stock.

    The number used in the release is “the number we typically use internally,” and “the most transparent number,” said spokeswoman Renee Rashid-Merem. “In our view, $1.9 billion is the bottom line.”

    In North America, GM had profits before interest and tax payments of $2.13 billion.

    Overseas operations came out slightly ahead. In Europe, GM had a loss before interest and tax payments of $559 million. That was offset by profits before interest and tax payments at GM's international unit, which doesn't include Europe, of $646 million. In addition, GM had equity income net of taxes of $351 million, mainly from its China joint ventures.

    Reuters contributed to this report, which appeared in Automotive News, a Detroit-based sister publication of Tire Business.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Michelin to end tire production in Russia, transfer operations
    2
    Updated: Tire makers react to war in Ukraine
    3
    Nokian reverses course, begins 'controlled exit' from Russia
    4
    Double Coin balances commercial supply, demand
    5
    Toyo North America names pair to executive positions
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • Mid-Year Report 2022
      • RUSSIA WAR IN UKRAINE
    • Aligning with ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
      • RUBBER NEWS EVENTS
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION