GM still records profit despite coronavirus impact

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Thread: GM still records profit despite coronavirus impact

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    GM still records profit despite coronavirus impact

    https://www.detroitnews.com/story/bu...ic/3084755001/


    "We entered this crisis better positioned financially because of the many business transformation actions we have taken over the past several years to improve our competitiveness," CEO Mother Mary Barra told investors on a conference call.
    Last edited by mbukukanyau; 05-06-2020 at 05:47 PM.

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    Re: GM still records profit despite coronavirus impact

    Quote Originally Posted by mbukukanyau View Post
    "We entered this crisis better positioned financially because of the many business transformation actions we have taken over the past several years to improve our competitiveness," CEO Mother Mary Barra told investors on a conference call.
    So very true. Kudos to Mary Barra and other GM executives for being proactive with those business transformation actions long before the COVID-19 induced recession started.
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    Re: GM still records profit despite coronavirus impact

    Even GM stock is fairly stable given the pandemic, despite losing the dividend(like many other dvd stocks).
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    Re: GM still records profit despite coronavirus impact

    Impressive! Though as we compare to the competition, keep in mind that if companies have "dirty closets" they will clean up their balance sheets, meaning dumping expenses to the P&L as everyone is expecting results to be bad. Seems like GM is running a tight financial ship and don't have any dirty secrets on their balance sheet to drop. Good job Mary B!

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    Re: GM still records profit despite coronavirus impact

    I wonder how many actually read the article?

    Smoke and mirrors numbers

    Lies , damn lies and then some statistics

    1st 1/4 numbers and corona didnt have real impact until April or to be factually correct the last week of March

    So in effect maybe 3 weeks of the 1/4 was affected?

    Will be real interesting seeing April numbers
    Last edited by VS Ute 5Litre; 05-06-2020 at 08:09 PM.
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    Re: GM still records profit despite coronavirus impact

    Good thing all the "Run away Mary" armchair quarterbacks weren't in charge. Eagerly awaiting their apologies, or maybe they should just write GM directly.

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    Re: GM still records profit despite coronavirus impact

    A few things to consinder
    1. GM first quater was affected by the ill advised UAW strike
    2. GM was in transition to replace the highly profitable SUV's when this all went down a traditional time for lower sales
    3. China was in the full Covid lockdown for most of Q1

    However you slice it, it seems Mother Maria Barrah has put GM in a good position to grow organically with a strong balance sheet without hurting from loss making profits.

    If they can pull off EV and Self driving technlogly, this is an undervalued company.

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    Re: GM still records profit despite coronavirus impact

    Quote Originally Posted by tripowergto Jan2003 View Post
    Even GM stock is fairly stable given the pandemic, despite losing the dividend(like many other dvd stocks).
    Suspended the dividend and down 40% YTD, other than that; yeah holding up well...............

    (Full Disclosure: I bought a whopping 100 shares at $19.70 on March 17th)



    Quote Originally Posted by VS Ute 5Litre View Post
    I wonder how many actually read the article?

    Smoke and mirrors numbers

    Lies , damn lies and then some statistics

    1st 1/4 numbers and corona didn't have real impact until April or to be factually correct the last week of March

    So in effect maybe 3 weeks of the 1/4 was affected?

    Will be real interesting seeing April numbers
    13 weeks, in Q1, the shut down only impacted weeks, 12 and 13.

    GM has already missed 5 weeks in Q2 and they still aren't back up and running, presumably at a new, slower pace, with the added safety precautions.


    Quote Originally Posted by mbukukanyau View Post
    A few things to consinder
    1. GM first quater was affected by the ill advised UAW strike
    2. GM was in transition to replace the highly profitable SUV's when this all went down a traditional time for lower sales
    3. China was in the full Covid lockdown for most of Q1

    However you slice it, it seems Mother Maria Barrah has put GM in a good position to grow organically with a strong balance sheet without hurting from loss making profits.

    If they can pull off EV and Self driving technology, this is an undervalued company.
    1) If anything, the strike helped Q1, because they entered the year light, and they were still catching up running additional production.
    (GMNA was +$300 million in 2020 over 2019)

    2) The strike pushed the K2XX/T1XX changeover to the end of March, making Q1 "clean" further helping Q1 profits (no changeover down time)

    3) True, but China adds little to the bottom-line, but was a drag $700,000 loss in Q1, so this one is mostly valid.
    (2019 was $0.00, 2020 was -$600 million)
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    Re: GM still records profit despite coronavirus impact

    Quote Originally Posted by Ed753 View Post
    Suspended the dividend and down 40% YTD, other than that; yeah holding up well...............

    (Full Disclosure: I bought a whopping 100 shares at $19.70 on March 17th)





    13 weeks, in Q1, the shut down only impacted weeks, 12 and 13.

    GM has already missed 5 weeks in Q2 and they still aren't back up and running, presumably at a new, slower pace, with the added safety precautions.




    1) If anything, the strike helped Q1, because they entered the year light, and they were still catching up running additional production.
    (GMNA was +$300 million in 2020 over 2019)

    2) The strike pushed the K2XX/T1XX changeover to the end of March, making Q1 "clean" further helping Q1 profits (no changeover down time)

    3) True, but China adds little to the bottom-line, but was a drag $700,000 loss in Q1, so this one is mostly valid.
    (2019 was $0.00, 2020 was -$600 million)
    Sector SAAR is said to be coming in at around 8 million units(North America), if Mother Barrah can show a profit at that level, she will go down and Mother that actually saved GM

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    Re: GM still records profit despite coronavirus impact

    Quote Originally Posted by mbukukanyau View Post
    Sector SAAR is said to be coming in at around 8 million units(North America), if Mother Barrah can show a profit at that level, she will go down and Mother that actually saved GM
    I saw estimates as low as 6.7 million, doesn't matter; GM can't survive (at that level) without others dying and increasing market-share.

    GM, along with every other automaker, are burning millions of dollars a day; to be clear, there is no profit in the current environment, not even close.
    Last edited by Ed753; 05-06-2020 at 11:07 PM. Reason: (at that level)
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    Re: GM still records profit despite coronavirus impact

    Quote Originally Posted by Ed753 View Post
    I saw estimates as low as 6.7 million, doesn't matter; GM can't survive (at that level) without others dying and increasing market-share.

    GM, along with every other automaker, are burning millions of dollars a day; to be clear, there is no profit in the current environment, not even close.
    6.7 million is brutal.. really brutal, I am interested in seeing how Hyundai and Toyota fair in this environment..

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    Re: GM still records profit despite coronavirus impact

    Quote Originally Posted by mbukukanyau View Post
    6.7 million is brutal.. really brutal, I am interested in seeing how Hyundai and Toyota fair in this environment..
    Per Ward's Automotive, April SAAR was 8.5 million, for comparison, last April was 16.2 million.
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    Re: GM still records profit despite coronavirus impact

    Quote Originally Posted by Ed753 View Post
    Per Ward's Automotive, April SAAR was 8.5 million, for comparison, last April was 16.2 million.
    Actually 8.5 might be the lowest we see, I think April was the worst, states are beginning to open.. the discounts and zero downs are going to hit profitability big time, we are back to the cash flow days

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    Re: GM still records profit despite coronavirus impact

    It'll be interesting to see what happens to Tesla.
    They make most of their money off other automakers buying emission credits.
    If everyone's way down, they get the double whammy. They're not building and no one's buying credits.

    Maybe that's why we're seeing Elon's interesting tweets lately.
    He sees disaster on the horizon and coming fast if things don't open up soon. They were capable of losing a billion in a good quarter.
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    Re: GM still records profit despite coronavirus impact

    https://www.marketwatch.com/story/gm...eet-2020-05-07

    Apparently some on Wall Street think GM is executing well given the current situation.

    Interesting contrast between GM and Ford between this financial crisis vs. the 2008 meltdown. Ford was much better positioned going into 2008 to weather the storm and obviously GM wasn't, now the roles are reversed. However, this downturn could be so bad that it wont matter that GM is better positioned going into it, this one could be so bad that both GM and Ford go under....

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