- General Motors today reported first-quarter profits of $3.2 billion.
- GM's net income of $3.2 billion was the equivalent of $1.77 per fully diluted share.
- GM is the last of Detroit's Big Three to post its profit statement for the first three months of the year.
DETROIT — General Motors today reported first-quarter profits of $3.2 billion, exceeding analysts' projections.
"We are on plan," said GM Chairman and CEO Dan Akerson in a statement. "GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth."
GM's net income of $3.2 billion was the equivalent of $1.77 per fully diluted share. That compares with a profit of $900 million or 55 cents per share in the first quarter of 2010. It includes gains of $1.6 billion from selling its stake in auto parts supplier Delphi Automotive LLP and $300 million for the sale of its stake in finance company Ally Financial. GM revenues rose to $36.2 billion, up from $31.5 billion.
GM's cash flow turned positive in the quarter to $1.9 billion from operations and $1 billion in free cash flow, due to ending its wholesale advance agreement with Ally Financial. Both metrics were in negative territory a year ago.
"GM has great potential to deliver profitable growth around the world as the recovery continues," said Dan Ammann, senior vice president and CFO. "While we're encouraged, we keenly recognize we have more opportunities to leverage our scale, improve spending and investment efficiencies, and optimize our strong balance sheet."
GM is the last of Detroit's Big Three to post its profit statement for the first three months of the year. Earlier, Ford posted a net profit of $2.6 billion for the quarter, and Chrysler earned a profit of $116 million, its first since emerging from its 2009 Chapter 11 bankruptcy.
Inside Line says: Turnaround, indeed. — Michelle Krebs, Editor-in-Chief, AutoObserver.com
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copmotor440cid says:
01:07 AM, 05/06/2011
@tbone85
Well Said
tbone85 says:
06:22 PM, 05/05/2011
Haters and fanboys are often hilarious. Whether GM reports a profitable quarter or a money-losing quarter the reactions are predictably the same. The key thing is not the facts, it's the agenda. Truth is always the first victim in a propaganda storm. The more tortured the logic, the more ridiculous the response.
jays83gsl says:
05:01 PM, 05/05/2011
09Cobalt, I REALLY don't care about the profits they make in China. That makes me lose MORE faith in GM.
We lent them BILLIONS of dollars, and they went and closed down US dealerships and plants, so they can open more plants in Mexico, China, and the Ukraine.
bodyblue says:
04:16 PM, 05/05/2011
cobalt: You make yourself look worse and worse the more you post. Using the f word and "STFU" makes you look like the loud mouth boob you are. Grow up.
qdp says:
02:32 PM, 05/05/2011
@ 09cobaltsstc
Just look at GM's stock price. Today's GM stock price is Down by 3%, while Ford's is down by 0.46%, Toyota' down by 0.25%,and Honda's UP by 0.03% . GM's issurance price was above $34 while today's GM price is at $32. However media spinners put it, GM is a Downer anyway.
qdp says:
01:26 PM, 05/05/2011
These days there are alot of media spinning for GM performances. It seems Gm is more good at investing money in media spinners than making better cars and producing solid financial rusults.
bodyblue says:
12:29 PM, 05/05/2011
They should not be allowed to keep a freaking cent until the US taxpayer gets back the money owed. Or maybe a 50% payment program. Stock issued that is not enough to pay back the loan is bulls**T. The UAW got its money back...why can we?
jays83gsl says:
11:34 AM, 05/05/2011
Now maybe they can start paying the 30billion they still owe us....