First signs of a GM turnaround?
10-25-2006, 04:09 AM
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First signs of a GM turnaround?
http://money.cnn.com/2006/10/25/news/compa...dex.htm?cnn=yes
Andrew
GM roars past forecasts
Nation's No. 1 automaker posts much stronger than expected earnings even as revenue falls short of forecasts.
October 25 2006: 7:14 AM EDT
NEW YORK (CNNMoney.com) -- General Motors posted third quarter profit that nearly doubled Wall Street's earnings expectations.
The nation's No. 1 automaker earned $529 million, or 93 cents a share excluding special items, compared with a loss of $1.1 billion, or $1.92 a share on that basis a year earlier. Analysts surveyed by Briefing.com had forecast earnings of only 49 cents a share in the period.
gm_general_motors.03.jpg
GM (Charts) still reported a narrow loss on its core automotive operations, but shaved $1.3 billion of losses from those operations. Revenue from auto sales fell slightly short of forecasts, but overall revenue improved.
GM's report comes two days after competitor Ford Motor Co. (Charts) reported a bigger than expected loss. Honda Motor (Charts) also reported disappointing results Wednesday although it raised its full year guidance on strong U.S. sales. DaimlerChrysler (Charts) is also due to report results Wednesday morning, and losses at its Chrysler Group unit is expected to hit results there. Top of page
Nation's No. 1 automaker posts much stronger than expected earnings even as revenue falls short of forecasts.
October 25 2006: 7:14 AM EDT
NEW YORK (CNNMoney.com) -- General Motors posted third quarter profit that nearly doubled Wall Street's earnings expectations.
The nation's No. 1 automaker earned $529 million, or 93 cents a share excluding special items, compared with a loss of $1.1 billion, or $1.92 a share on that basis a year earlier. Analysts surveyed by Briefing.com had forecast earnings of only 49 cents a share in the period.
gm_general_motors.03.jpg
GM (Charts) still reported a narrow loss on its core automotive operations, but shaved $1.3 billion of losses from those operations. Revenue from auto sales fell slightly short of forecasts, but overall revenue improved.
GM's report comes two days after competitor Ford Motor Co. (Charts) reported a bigger than expected loss. Honda Motor (Charts) also reported disappointing results Wednesday although it raised its full year guidance on strong U.S. sales. DaimlerChrysler (Charts) is also due to report results Wednesday morning, and losses at its Chrysler Group unit is expected to hit results there. Top of page
10-25-2006, 04:21 AM
#2
Nah, GM sucks and is a crappy American car maker. These numbers are a fluke.
10-25-2006, 05:30 AM
#3
Looks like GM is going to pull out of it on their own, and fairly quickly. Sad thing is, I'm more excited about Ford's offerings (in terms of vehicles) than GM's... About the only "reasonable" (under $30K) car they offer that interests me is the G6, and that's on looks alone (I have yet to drive it).
10-25-2006, 05:55 AM
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Turnaround?
GM Market share in US has fallen from 14.4 to 13.9 percent.
CORRECTION - THAT WAS GLOBAL SHARE, NOT US SHARE.
http://www.foxnews.com/story/0,2933,224827,00.html
GM Market share in US has fallen from 14.4 to 13.9 percent.
CORRECTION - THAT WAS GLOBAL SHARE, NOT US SHARE.
http://www.foxnews.com/story/0,2933,224827,00.html
10-25-2006, 05:59 AM
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I had the misfortune to rent and impala recently. Wow, what an awful car. The passenger seat seemed tilted forward is if it was trying to eject the passenger.
Poor interior materials, ho-hum dynamics, grumpy engine.
Poor interior materials, ho-hum dynamics, grumpy engine.
10-25-2006, 06:26 AM
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Originally Posted by Palmateer,Oct 25 2006, 08:55 AM
Turnaround?
GM Market share in US has fallen from 14.4 to 13.9 percent.
http://www.foxnews.com/story/0,2933,224827,00.html
GM Market share in US has fallen from 14.4 to 13.9 percent.
http://www.foxnews.com/story/0,2933,224827,00.html
I think GM would be quite happy with selling fewer cars if it continued to mean that it was selling them more profitably.
No one is saying that this one quarter means that GM is back. It's just a strong indication of initial progress and sucess in their cost-cutting turnaround program.
Andrew
10-25-2006, 06:31 AM
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Originally Posted by aklucsarits,Oct 25 2006, 07:26 AM
I think GM would be quite happy with selling fewer cars if it continued to mean that it was selling them more profitably.
One of GM's problems is that they sell a lot of crap low margin cars to rental agencies and the like. Those cars inflate sales figures but don't actually do anything for the bottom line.
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10-25-2006, 07:15 AM
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This is why I've said all along that sales #s have NOTHING to do with GM's success or failure. PROFITABLE sales are what count. There's no such thing as "making it up on volume" when it comes to unprofitable sales.
Good for GM. I still don't want to buy their cars, but I don't want the company to fail, either.
Good for GM. I still don't want to buy their cars, but I don't want the company to fail, either.
10-25-2006, 10:18 AM
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Originally Posted by aklucsarits,Oct 25 2006, 04:09 AM
soooo as an investor... would u invest in a business thats losing money?
10-25-2006, 10:58 AM
#10
Trying to meet or beat the earning forecast....all these Wall Street expectation is just one of those things which got GM and Ford in deep you know what in the first place.
Not until I see some appealing products across the board, all these number games don't mean shxt to me!
Not until I see some appealing products across the board, all these number games don't mean shxt to me!