DETROIT, July 31, 2007
GM Posts 2Q Profit Of $891 Million
Earnings An Enormous Reversal From $3.4 Billion Loss From Last Year's Second Quarter
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(AP / file)
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It was the third straight quarterly profit for the nation's largest automaker, which attributed the year-over-year increase to improved sales, especially in growing markets worldwide.
The profit amounted to $1.56 per share, compared with a $5.98-per-share loss in the year-ago period.
"Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings," Chairman and Chief Executive Rick Wagoner said in a statement.
The automaker, though, continued to lose money in its home market, North America, where it reported a net loss from continuing operations of $39 million. That was a vast improvement over the second quarter of last year, when the company reported a net loss of $3.95 billion in North America.
In the second quarter of 2006, GM took a giant after-tax charge of $3.7 billion for early retirement and buyout offers that eventually reduced its hourly work force by more than 34,000.
GM's overall results surpassed Wall Street expectations. Fifteen analysts polled by Thomson Financial predicted earnings of $1.13 per share, excluding special items.
The profit came despite $520 million in charges associated with the bankruptcy reorganization of Delphi Corp., GM's former parts arm, and other restructuring costs for GM's North American unit.
The Detroit-based company said its net income from continuing global automotive operations was $618 million, compared with a net loss of $3.48 billion in the year-ago period.
The quarterly results exclude Allison Transmission, which GM intends to sell in the third quarter and has classified as a discontinued operation.
In Europe, the company had net income of $217 million, up from a net loss of $39 million in the same quarter last year.
The company's Asia Pacific unit posted a net profit of $227 million, compared with $376 million in the year-ago quarter, which included $212 million from the sale of GM's interest in Japanese automaker Isuzu.
In its Latin America, Africa and Middle East unit, GM said explosive growth helped it to its best quarterly net income in a decade at $213 million. That compares with $139 million in the April-through-May quarter of last year.
© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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- Does this mean that Oprah is getting ready to give away some more cars on her show?
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- and the winner of the next Enron-accounting-scandal award is...
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- Now that half of GM's operations have moved to 3rd world countries to exploit the slave labor other companies are using, the profit flow has returned to the board of directors. Why don't you go ask the 2000 the Buick, Oldsmobile, Cadillac plant in Pittsburgh how great things will be when the plant closes in September.
Bwahahahahahahaha
NEVER VOTE REPUBLICAN AGAIN! - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
- Careful, Clinton will want to take those profit dollars and "redistribute" them just like she wants to do with oil and other business profits.
- Reply to this comment
- Well, I have been noticing more new GM cars on the roads lately. I know that's an anecdotal observation, but I am seeing a clear trend in my Nor Cal region. My area is typically a place where hybrids/econo cars from Japanese makers are usually the norm.
If it means fewer lay-offs, then this is great news, no matter what political ideology one subscribes to! - Reply to this comment
- Yet according to liberals, the economy is "horrible", and half of America is in a soup line.
...
Bwahahahahahahaha - Reply to this comment
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