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Discussion Starter · #1 ·
DETROIT – General Motors Co. (NYSE: GM) today announced third quarter net income attributable to common stockholders of $1.4 billion, or $0.81 per diluted share. A net loss from special items reduced net income by $0.3 billion, or $(0.16) per diluted share.

Special items were primarily related to flood damage sustained at the GM Technical Center in Michigan and long-lived asset impairments in Russia.

“Strong global sales and growing margins in North America and China helped GM deliver very solid third quarter results,” said GM CEO Mary Barra. “Despite industry challenges in Russia and South America, our earnings were on plan as we continue to execute our customer-focused strategy.”

In the third quarter of 2013, GM’s net income attributable to common stockholders was $0.7 billion, or $0.45 per diluted share, which included a net loss from special items that reduced net income attributable to common stockholders by $0.9 billion, or $(0.51) per diluted share.

Earnings before interest and tax (EBIT) adjusted was $2.3 billion and included the impact of $0.2 billion in restructuring costs for actions taken in GM Europe. This compares to the third quarter of 2013, when the company recorded EBIT-adjusted of $2.6 billion, which included $0.1 billion in restructuring costs.

Net revenue in the third quarter of 2014 was $39.3 billion, compared to
$39.0 billion in the third quarter of 2013. In the first nine months of 2014, revenue rose to $116.3 billion, up from $114.9 billion in the same period a year ago.

GM North America reported EBIT-adjusted of $2.5 billion, compared with EBIT-adjusted of $2.2 billion in the third quarter of 2013.
GM Europe reported EBIT-adjusted of $(0.4) billion which includes restructuring costs of $(0.2) billion, compared with EBIT-adjusted of $(0.2) billion in the third quarter of 2013.
GM International Operations reported EBIT-adjusted of $0.3 billion, compared with EBIT-adjusted of $0.3 billion in the third quarter of 2013.
GM South America reported break-even results, compared with
EBIT-adjusted of $0.3 billion in the third quarter of 2013.
GM Financial reported earnings before tax of $0.2 billion, compared to
$0.2 billion in the third quarter of 2013.
Cash Flow and Liquidity

For the quarter, automotive cash flow from operating activities was $0.7 billion and automotive free cash flow adjusted was $(0.8) billion, which was down from $1.3 billion a year ago. The decline in automotive free cash flow adjusted was primarily related to one extra weekly payment cycle to suppliers during the quarter compared with the same quarter a year ago, and cash payments related to repairing recalled vehicles, including costs to expedite parts to dealers.

GM ended the quarter with total automotive liquidity of $36.6 billion. Automotive cash and marketable securities was $26.1 billion compared with $28.4 billion for the second quarter of 2014.

“Strong performance in North America, where we achieved a 9.5 percent margin, anchored our overall results,” said Chuck Stevens, GM executive vice president and chief financial officer. “We remain focused on flawlessly launching key vehicles globally in the coming months, while delivering a positive experience for our customers.”

Key vehicle launches taking place in the fourth quarter include the recently introduced GMC Canyon and Chevrolet Colorado mid-sized pickups in the U.S., the Cadillac ATS-L, Buick Envision and Chevrolet Cruze in China, and the Opel Corsa and ADAM ROCKS in Europe. The company also has introduced 4G LTE high-speed mobile broadband in 33 vehicles this year, more than the rest of the industry combined, and plans to introduce it on more than a dozen additional models by the end of 2015.
 

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Discussion Starter · #2 · (Edited)
FWD OpelSSss not good down -$400 million despite GM Russia's now has been added to GM EU last year. Russian trade war is not good for business GM sales are down nearly -50% in Russia, there are no winners in trade wars.

Silverado "the wealth creator" sales up +54% last month is keeping the good ship GM afloat.

German economy the EU powerhouse has started to stall.

UK economy tanked, as borrowing mushroomed rocketed last month, every UK family now is saddled with $93,000 of British government debt, as Government borrowing jumps 10% in the UK ouch, austerity has cutback to the bone, now needs more cutbacks with no flesh left on the bone.
LINK

Since Obama got in US debt has mushroomed by $7 trillions. It's now over $17 trillions or $153,000 US Government debt per US taxpayer. Government are very good at spending your money bailing out their investment banking buddies. Looks like headwinds are ahead when interest rates start to rise as a result of printing Fiat phoney money.

Print more money, borrow more on the nations credit card, or deeper austerity more cutbacks (government vote loser - Mmmm pay down your debt they won't do that one)?
 

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It always amazes me how GM is so dependent on North America for profits, they barely make anything on the international operations. For all the great hoopla surrounding China, there are scarce profits being made.
 

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Discussion Starter · #6 · (Edited)
It always amazes me how GM is so dependent on North America for profits, they barely make anything on the international operations. For all the great hoopla surrounding China, there are scarce profits being made.
Long gone are the times when a 100s of million of young European baby boomers had posters of this American car on their bedroom walls, a car that touches the heart & soul.


It went onto sell 20 millions off the back of the original, was the only American company car that dethroned the mighty Corolla 7 years on a trot as the worlds best selling car, the very last version sold in Europe in 2000 was a total pile of crap sad to say. Opel just kinda lacks heart & soul inspiration, l just wish the Mark Adams could do something like it for Opel in the future, and turn the fortunes around, but l just can't see it happening.

Most young Europeans today are probably more into Apple i-phones & Samsung Galaxy's that have that same special heart & soul that make you wanna get out of bed go work hard for when you are young, not interested in cars sad to say, Opel cars just don't appeal have that touches the heart & soul, that something special anymore, l just wish the Mark Adams of this world could capture it for GM in Europe. When they come along they are around once in a blue moon they do well change a companies fortunes the i-pod wiped out the walkman, now the i-pod is no more it's been shifted onto the hard drive of a phone.

 

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It always amazes me how GM is so dependent on North America for profits, they barely make anything on the international operations. For all the great hoopla surrounding China, there are scarce profits being made.
Why report higher profits in higher taxation jurisdictions and/or jurisdictions where the politics might swing in an unfavourable way? Best way to look at things is through the consolidated cash flow statement: indirect or direct method in its preparation, it reconciles to the actual money coming in and going out; that's all that matters to cut through both the company's and analysts' talk...
 

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It always amazes me how GM is so dependent on North America for profits, they barely make anything on the international operations. For all the great hoopla surrounding China, there are scarce profits being made.
All multi-nationals are like that - they choose which country to declare taxable profits to minimise their overall tax take and avoid double taxation..

In the UK, when I worked for a US-owned multi-national none of it's European subsidiaries "appeared" to make a profit even though the internal management accounts showed every European company hugely profitable - easy enough to do with head office charges for corporate management and use of corporate IP.

It's important to Wall St to know that revenue and profits are maximised globally, not the true position of a specific market.
 
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