GM earnings off 11.5% amid restructuring and softer sales

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Thread: GM earnings off 11.5% amid restructuring and softer sales

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    GM earnings off 11.5% amid restructuring and softer sales

    https://www.detroitnews.com/story/bu...es/3620024002/

    General Motors Co.'s pre-tax earnings were $2.3 billion in the first quarter of 2019, down 11.5% from the same quarter last year, amid restructuring activities and softer sales

    The Detroit automaker reported pre-tax earnings per share of $1.41, down 1.4%. It made $2.1 billion on $34.9 billion in revenue after taxes.

    "We're making progress on our business transformation," GM Chief Financial Officer Dhivya Suryadevara said in a statement Tuesday. "We expect our global product mix, launch cadence and cost efficiencies to drive earnings growth throughout the year."

    GM profit margins of 6.6% were down 0.6 percentage points from the first quarter of 2018. The company's automotive free cash-flow depleted to negative $3.9 billion, down $600 million from a year ago. GM said it had expected the cash flow hit this quarter and still expects to end the year with up to $6 billion in automotive free cash.

    GM made $1.9 billion in North America in the first quarter, down $300 million. The dip was driven largely by planned downtime for full-size SUV production as the automaker switched to new models, GM said in its statement. The automaker's U.S. vehicle sales fell 7 percent in the first quarter while global sales fell 10.4%.

    "This quarter has been a bit of a choppy start to 2019 for GM as the company saw year-over-year declines across all of its brands," Jeremy Acevedo, an automotive analyst for Edmunds, said ahead of GM's earnings release. "GM is dealing with transitional pains as it phases out some of its cars, and the slow ramp-up of the Silverado is taking a bite out of the company's pickup truck sales. The good news is that GM has done a better job of reining in incentives this quarter compared to last year, and the company's prospects for the remainder of 2019 seem a bit brighter."

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Uh Oh! It appears GM's first quarter financial results were much worse than we were initially lead to believe. After reading the GM 1st quarter sales report I was of the opinion that the "relatively high ATP's" was going to make up for the poor sales results.

    General Motors Co.'s pre-tax earnings were down 11.5%
    GM profit margins of 6.6% were down 0.6 percentage points
    GM made $1.9 billion in North America in the first quarter, down $300 million
    GM U.S. vehicle sales fell 7 percent in the first quarter while global sales fell 10.4%
    Good News? GM has higher ATPs than first quarter 2018

    I would conclude that higher ATPs is not the panacea it is often times made out to be (here on GMI)

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    DETROIT — General Motors Co. (NYSE: GM) today reported solid first-quarter earnings. The company’s full-size truck launch is ahead of plan and drove strong pricing for the quarter in North America. Average transaction prices for GM’s all-new full-size crew cab pickup trucks are up $5,800 over the outgoing models.
    Man, never would have guessed the real numbers from the GM press release.
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    Re: GM earnings off 11.5% amid restructuring and softer sales

    No surprises at all - car sales are a bit soft everywhere.

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Quote Originally Posted by bballr4567 View Post
    Man, never would have guessed the real numbers from the GM press release.
    It turns out the 11.5% drop in earnings for the first quarter would have been significantly worse if it weren't for some accounting magic. It seems there was a one time favorable revaluation of GM's stake in Lyft that mitigated what otherwise would have been a disaster of a quarter (financially anyway). Link to Bloomberg Article

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    General Motors Co.'s pre-tax earnings were down 11.5%
    GM profit margins of 6.6% were down 0.6 percentage points
    GM made $1.9 billion in North America in the first quarter, down $300 million
    GM U.S. vehicle sales fell 7 percent in the first quarter while global sales fell 10.4%
    Good News? GM has higher ATPs than first quarter 2018
    The "Fly in the Ointment" here seems to be (and this is just My Take). Even with DE contenting, Higher MSRP, Reduced Labor Costs, and lower use of More Expensive Aluminum, GM still pays more per unit.

    Especially prevalent now without all of the Old GM Tax Write Offs.

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    I'll wait for the GM Loyalists to come into the thread and tell the real story about how GM is winning as opposed to what "Detroit News" and "Bloomberg" are reporting. Who could trust these two rags,probably full of GMINFIDELS to tell the truth.

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Quote Originally Posted by Mr.Buttons View Post
    I'll wait for the GM Loyalists to come into the thread and tell the real story about how GM is winning as opposed to what "Detroit News" and "Bloomberg" are reporting. Who could trust these two rags,probably full of GMINFIDELS to tell the truth.
    GM is down, lets celebrate

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Quote Originally Posted by mbukukanyau View Post
    GM is down, lets celebrate
    I definitely don't "celebrate" GM being down. However, I also won't get caught in the spin cycle of "ATPs up and all is great".

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    The "Real Story" would be in R+D, what is being Invested into the Future?

    And again, "How much of Opel/Vauxhall's loses, while under GM Rule" was going to R+D?

    But that's just how My mind works. I don't think like Wall Street.

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Quote Originally Posted by Mingo View Post
    I definitely don't "celebrate" GM being down. However, I also won't get caught in the spin cycle of "ATPs up and all is great".
    According to em GM, the restructuring (which we cannot deny) and change over of trucks.. has em down..

    I guess its cause for celebration.. The killing of sedans is going to raise ATP's for both GM and Ford...

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Real story.

    GM (Revenue of $34.9 billion, EBIT-adjusted 2.3B, $2.1B net income)
    Ford (Revenue of $40.3 billion, EBIT-adjusted 2.4B, $1.1B net income)

    Ford is a loser, as usual.
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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Quote Originally Posted by mbukukanyau View Post
    GM is down, lets celebrate
    Why would you do that?

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Quote Originally Posted by Ute View Post
    Real story.

    GM (Revenue of $34.9 billion, EBIT-adjusted 2.3B, $2.1B net income)
    Ford (Revenue of $40.3 billion, EBIT-adjusted 2.4B, $1.1B net income)

    Ford is a loser, as usual.
    GM still pays little to no taxes on income due to Gov't bailout terms and benefits. Hence why Ford has higher (Earnings Before Interest and Taxes) but lower net income (after taxes). Good deal for GM but not exactly fair to everyone else.

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    Re: GM earnings off 11.5% amid restructuring and softer sales

    Quote Originally Posted by mbukukanyau View Post
    GM is down, lets celebrate
    LMFAO!!! Cause this is the meat and potatoes of so many.

    GM $2.15B net income
    Ford $1.1B net income


    But U won't hear about it.. and what they won;t say is that earning are actually UP from last year's$1.04 billion in the first quarter of 2018
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