General Motors Rolls with $2.5 billion Quarterly Profit
If you didn’t believe “new” General Motors could sustain its profit levels since its 2009 reorganization, now might be time to start believing it. Posting a whopping $2.5 billion net profit ― almost twice the $1.3 billion profit the company made the previous quarter ― the General just secured its sixth straight profit-earning quarter, which works out to $1.54 per share. Overall, GM earned revenues of $39.4 billion for the quarter ending in June, and raised the company’s total liquidity in its rainy day piggy bank to $39.7 billion. Just as important, GM Europe, which has struggled throughout the past decade, finally managed to post a $100 million profit as opposed to its $200 million loss from the prior quarter. “Our earnings and cash flow are solid and we’re going to keep working on the fundamentals of strong brands, great products and operating leverage to create profitable growth around the world,” said GM’s senior vice president and CFO Dan Ammann in a statement. What may be more surprising, however, is GM International Operations’ modest $600 million gain. The division covers GM’s Asian markets and some of the fastest-growing regions in the world like India and China. That could spell problems down the line as more automakers look to bolster profits with new markets in a high volume area with less profit per car to be had. For comparison, GM earned $2.2 billion in North America last quarter. With all of GM’s newfound success, the stock market isn’t treating the company as well as you’d expect. Yesterday, GM recorded its lowest share price since going public again after restructuring at $26.13 per share ― down from its November 2010 high of $39.48 when it GM held its initial public offering. Source: General Motors
Dear Santa, I have been a very good boy this year.