GM's LATEST financial report
10-02-2012, 02:24 PM
#1
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GM's LATEST financial report
Received this today from GM. While GM, as indicated in the article, has made some progress, they still have some goals to attain.
Notice the last part of the article regarding the government ownership.
Subject: GM's 3Q stock gain surprises industry “ Associated Press
GM's 3Q stock gain surprises industry
Sep. 30, 2012
Surprise! The top-performing stock among automakers in the U.S. last quarter was General Motors.
The company, which endured management upheaval during the third quarter and announced that it would lose substantial cash in Europe, saw its shares rise 15% from July through the end of September. The gain was the best since the first quarter of this year, when the stock climbed about 23%. GM posted strong profits in that period.
GM's stock outperformed all other major automakers in the U.S. including rival Ford Motor, which saw its shares rise 3%.
General Motors' gains for the quarter surprised industry watchers, given publicity about management changes and the continued sales slump in Europe that has hit nearly every major automaker.
During the quarter, GM ousted its marketing chief and the head of European operations. It also lost several other key executives including its top electric-car engineer and head designer in Europe.
Investors now realize that most of the departures signal that GM is making necessary changes. That's better than sweeping management problems under the rug like it did in the past, said Bill Selesky, an industry analyst for Argus Research. The changes, he said, have set GM apart from its peers this quarter.
"People are now looking at the company and saying they're more proactive," Selesky said. "They're not the same company my father used to know."
For the quarter, GM shares gained $3.05, from $19.70 on July 2 to $22.75 on Friday.
U.S. shares of Japanese rivals Toyota Motor., Honda Motor. and Nissan Motor each lost ground during the quarter, with Toyota down 2.5%, Honda off 11% and Nissan down 9%.
GM got on many portfolio managers' buy lists during the quarter because it hit a 52-week low of $18.72 in July, and many thought they were buying at the bottom, said Joe Phillippi, president of New Jersey-based AutoTrends Consulting. "You go for the bounce of the cycle," he said.
Some of the investors might hold the stock longer because of GM's plans to boost sales by revamping 70% of its North American product lineup by the end of 2013, Phillippi said.
"Fit, finish, refinement, fuel economy numbers. It keeps getting better," he said of GM products.
Longer term, a rising stock price could help the U.S. government recoup the $50 billion it spent bailing out GM in 2008 and 2009. Treasury still holds 500 million shares of GM (26.5%) under that deal, but hasn't sold yet because of the relatively low price. GM stock would have to get to $53 for the government to break even.
GM made $2.5 billion through the first half of the year. But it's predicting lower profits in the second half as losses continue in Europe. Car sales are in their fifth straight year of decline there, and GM has lost money in Europe for a dozen years.
The automaker posted a $361 million pretax loss in the region in the second quarter. During the third quarter, GM warned that it may have to reduce the value of its European operations.
But GM has been taking small steps to fix Europe, including an announcement in August that employees at two German plants would work reduced hours during the next few months.
The fact that something is being done to change Europe is encouraging to investors, who see the company as a good short-term investment, Selesky said.
GM still has problems to deal with elsewhere, including slow growth in China and North America. GM's U.S. sales are lagging behind overall market growth. Through August, U.S. sales grew 3.7% over a year earlier, but the whole market grew almost 15%.
And if the new products in North America, including important new pickup trucks next year, don't boost GM's sales and market share, that will mean trouble for the stock, Phillippi said.
"If they don't pick up share, people will hammer them," he said.
Notice the last part of the article regarding the government ownership.
Subject: GM's 3Q stock gain surprises industry “ Associated Press
GM's 3Q stock gain surprises industry
Sep. 30, 2012
Surprise! The top-performing stock among automakers in the U.S. last quarter was General Motors.
The company, which endured management upheaval during the third quarter and announced that it would lose substantial cash in Europe, saw its shares rise 15% from July through the end of September. The gain was the best since the first quarter of this year, when the stock climbed about 23%. GM posted strong profits in that period.
GM's stock outperformed all other major automakers in the U.S. including rival Ford Motor, which saw its shares rise 3%.
General Motors' gains for the quarter surprised industry watchers, given publicity about management changes and the continued sales slump in Europe that has hit nearly every major automaker.
During the quarter, GM ousted its marketing chief and the head of European operations. It also lost several other key executives including its top electric-car engineer and head designer in Europe.
Investors now realize that most of the departures signal that GM is making necessary changes. That's better than sweeping management problems under the rug like it did in the past, said Bill Selesky, an industry analyst for Argus Research. The changes, he said, have set GM apart from its peers this quarter.
"People are now looking at the company and saying they're more proactive," Selesky said. "They're not the same company my father used to know."
For the quarter, GM shares gained $3.05, from $19.70 on July 2 to $22.75 on Friday.
U.S. shares of Japanese rivals Toyota Motor., Honda Motor. and Nissan Motor each lost ground during the quarter, with Toyota down 2.5%, Honda off 11% and Nissan down 9%.
GM got on many portfolio managers' buy lists during the quarter because it hit a 52-week low of $18.72 in July, and many thought they were buying at the bottom, said Joe Phillippi, president of New Jersey-based AutoTrends Consulting. "You go for the bounce of the cycle," he said.
Some of the investors might hold the stock longer because of GM's plans to boost sales by revamping 70% of its North American product lineup by the end of 2013, Phillippi said.
"Fit, finish, refinement, fuel economy numbers. It keeps getting better," he said of GM products.
Longer term, a rising stock price could help the U.S. government recoup the $50 billion it spent bailing out GM in 2008 and 2009. Treasury still holds 500 million shares of GM (26.5%) under that deal, but hasn't sold yet because of the relatively low price. GM stock would have to get to $53 for the government to break even.
GM made $2.5 billion through the first half of the year. But it's predicting lower profits in the second half as losses continue in Europe. Car sales are in their fifth straight year of decline there, and GM has lost money in Europe for a dozen years.
The automaker posted a $361 million pretax loss in the region in the second quarter. During the third quarter, GM warned that it may have to reduce the value of its European operations.
But GM has been taking small steps to fix Europe, including an announcement in August that employees at two German plants would work reduced hours during the next few months.
The fact that something is being done to change Europe is encouraging to investors, who see the company as a good short-term investment, Selesky said.
GM still has problems to deal with elsewhere, including slow growth in China and North America. GM's U.S. sales are lagging behind overall market growth. Through August, U.S. sales grew 3.7% over a year earlier, but the whole market grew almost 15%.
And if the new products in North America, including important new pickup trucks next year, don't boost GM's sales and market share, that will mean trouble for the stock, Phillippi said.
"If they don't pick up share, people will hammer them," he said.
10-02-2012, 06:05 PM
#2
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Seems like old news since GM and Chrystler has payed back all their dept earlier this year. Ahead of expectations
http://money.cnn.com/2010/04/21/auto...ment/index.htm
And some more interesting news that I thought I read about before someplace. But it seems Ford had their hand in the cookie jar too.
http://www.forbes.com/sites/joannmul...-surprise-you/
http://money.cnn.com/2010/04/21/auto...ment/index.htm
And some more interesting news that I thought I read about before someplace. But it seems Ford had their hand in the cookie jar too.
http://www.forbes.com/sites/joannmul...-surprise-you/
10-02-2012, 06:30 PM
#3
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You got it "kid".....
I mentioned that because some members, as well as many of our esteemed citizens, still believe GM owes the government money.
Alas, the taxpayers should be unset the Administration's guru suggested and arranged the stock purchase.....stupidly.
Nobody outside the government knows for sure what the shares were purchased for (it was probably done utilizing a "ladder" method), but the general description always uses $53/share. Which I doubt since the new stock opened at around $33. And the government started with about 35% of GM shares. They have sold some, as other articles have indicated.
I mentioned that because some members, as well as many of our esteemed citizens, still believe GM owes the government money.
Alas, the taxpayers should be unset the Administration's guru suggested and arranged the stock purchase.....stupidly.
Nobody outside the government knows for sure what the shares were purchased for (it was probably done utilizing a "ladder" method), but the general description always uses $53/share. Which I doubt since the new stock opened at around $33. And the government started with about 35% of GM shares. They have sold some, as other articles have indicated.
10-02-2012, 07:09 PM
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I want to add another point, before people start talking about high inventories. From GM's press release here http://media.gm.com/media/us/en/gm/n...t/gmsales.html
However, GM reduced its large pickup inventories by approximately 8,600 units compared with August, and earned average transaction prices more than $2,300 per unit above a year ago with the lowest incentive spending in the industry, according to J.D. Power PIN data.
Given GM's volumes an increase of $2300 per vehicle is HUGE. Yet to reach a lot of media is the fact that "darling" VW increased incentives over $2000 per vehicle in September. So, yeah, their sales went up. Can they keep it up? Doubtful.
This gives me a big boost in my faith for the home team. I personally cannot wait until the new full-sized trucks come out, and then mid-sized trucks behind them. GM is not going away, and certainly not without a big fight. Accepting what everyone else feels is inevitable, is opposed to "do not go gentle into that good night".
Allowing a reduction in volume for a huge increase in profit? Sign me up.
However, GM reduced its large pickup inventories by approximately 8,600 units compared with August, and earned average transaction prices more than $2,300 per unit above a year ago with the lowest incentive spending in the industry, according to J.D. Power PIN data.
Given GM's volumes an increase of $2300 per vehicle is HUGE. Yet to reach a lot of media is the fact that "darling" VW increased incentives over $2000 per vehicle in September. So, yeah, their sales went up. Can they keep it up? Doubtful.
This gives me a big boost in my faith for the home team. I personally cannot wait until the new full-sized trucks come out, and then mid-sized trucks behind them. GM is not going away, and certainly not without a big fight. Accepting what everyone else feels is inevitable, is opposed to "do not go gentle into that good night".
Allowing a reduction in volume for a huge increase in profit? Sign me up.
10-02-2012, 08:04 PM
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One thing about that $2300 per vehicle. I think it is gross profit. Nobody, outside of a very select small group in GM, know what GM nets per vehicle. All manufacturers closely guard that number because, if revealed, it provides a competitive advantage.
But it still is looking better. Although I know GM recently "wiped out" 26 billion dollars a year in salaried employee retirements.
Good article, THANKS.
But it still is looking better. Although I know GM recently "wiped out" 26 billion dollars a year in salaried employee retirements.
Good article, THANKS.
10-03-2012, 08:15 AM
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Treasury still holds 500 million shares of GM (26.5%) under that deal, but hasn't sold yet because of the relatively low price. GM stock would have to get to $53 for the government to break even.
Maybe they need another Volt!
10-03-2012, 05:19 PM
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The unions were given a "chunk", BUT not very large in the vast realm of things.
Here's a chart, dated March of this year, that may help understand. Although the chart is 6+ months old it may be a little different now.
And the Federal Government as well as the union's have sold some of their shares according to other financial publications.
http://www.gminthemedia.com/2012/03/...ock/pie-chart/
Here's a chart, dated March of this year, that may help understand. Although the chart is 6+ months old it may be a little different now.
And the Federal Government as well as the union's have sold some of their shares according to other financial publications.
http://www.gminthemedia.com/2012/03/...ock/pie-chart/
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