GM projected to have most profitable Q1 in 11 years

[webby]

GM projected to have most profitable Q1 in 11 years

Most automakers have already reported earnings for the first quarter of 2011, but General Motors is still busy counting its loot. We don't know how well the largest automaker in the United States fared, but Bloombergreports that GM could post a profit of $1.74 billion for the quarter. That would be a 63 percent improvement versus Q1 2010 and the best first quarter for GM in 11 years. A first quarter profit would also be the fifth consecutive quarterly profit for The General – a significant task given the fact that the automaker exited bankruptcy protection less than two years ago.

GM's profit is expected because of the automaker's successful quarter in the U.S. and China. The automaker sold 26 percent more vehicles in the U.S. during Q1 2011 than it did in the first quarter of 2010, while car buyers in China appear to be picking up as many GM products as they can.

In the short term, analysts are questioning whether a solid profit statement will affect the company's stock. GM is still trading at levels close to the same $33/share when the company's IPO was released. The stock briefly climbed to nearly $39/share before dropping back down into the low $30 range. Analysts claim that GM stocks could take a turn for the better due to supply chain issues for Japanese automakers. The General is reportedly in a good position to reap additional sales as the result of its competitors' issues.

 

[webby]

another note on the GM front -

In honor of National Military Appreciation Month, General Motors is expanding the GM military discount to include spouses and retirees. The discounts, which range between $500 and $4,000, will be valid for the month of May to the spouses and retirees of the Air Force, Army, Navy, Marines, National Guard and Coast Guard.

 

[KennyGS]

^ Wow, that is very nice, and should help them get people into showrooms.

That model in the photo above would have me in a showroom in a heartbeat.

 

[webby]

the results came in today

GM earned $3.2 billion in first quarter of 2011, which marks the fifth consecutive profitable quarter


GM says that net income attributable to common shareholders increased by $1.9 billion thanks to the sale of its stake in Delphi Automotive and Ally Financial, though the company saw a $400 million goodwill impairment charge at GM Europe and a $100 million change in tax regulations tied to the manufacturer's joint venture in India. As a result, total net income attributable to common shareholders totaled out at $1.5 billion.

All said, earnings before interest and tax were $3.5 billion, though that number dropped to $2 billion once adjusted to include special items. During the same period last year, EBIT was $1.7 billion.