GM First Quarter Loss $3.8bn

[csv8]

GENERAL Motors reported a first-quarter loss of $US3.3bn ($3.8bn) citing weakness in the domestic auto industry and special charges.

The biggest US automaker said the loss amounted to $US5.74 per share. But the results were better than expected with one-time charges excluded.

Excluding exceptional items, the carmaker posted a loss of $US350 million, or 62 cents per share, far better than market expectations of $US1.54, and helped rev up interest in GM shares.

"The results may not be immediately comparable to the more sizeable loss analysts were expecting, but are still attracting attention'' from investors, Briefing.com analysts wrote in a client note.

GM shares roared higher by 9.4 per cent to $US23.20.
Total revenue in the first quarter fell slightly to $US42.7 billion from $US43.4 billion on lower North America automotive and financial services and insurance revenue.

Revenue at GM's North America (GMNA) division fell to $US24.5 billion from $US28.1 billion.

On Monday, GM announced it was cutting back production of pickup trucks and sport-utility vehicles because of weakening demand in the US market for the gas guzzlers amid soaring petrol prices.

GM cut its 2008 US total industry seasonally adjusted annual rate outlook "to the mid to high 15 million unit range,'' down from the low 16 million unit range.

The struggling automaker said it had combined earnings before taxes of $US1 billion in GM Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific (GMAP) and GM Europe (GME), which more than offset a loss at GM North America.

"We continue to leverage our global product portfolio to take advantage of tremendous growth in key emerging markets, while at the same time taking the appropriate actions to deal with the challenging economic conditions in the US,'' said GM chairman and chief executive Rick Wagoner.
GM took a non-cash charge of $US2.9 billion linked to several items.

Nearly half of the charge, $US1.45 billion was for the depreciation of its former financial services subsidiary, GMAC, which has been hard hit by the global credit squeeze.

GM retains a 49 per cent share in the unit after selling 51 per cent to a consortium led by private equity firm Cerberus in 2006.

The provision also includes a charge of $US731 million to increase the company's liability for estimated costs associated with Delphi's bankruptcy and restructuring efforts.

The auto parts maker was spun off from GM in 1999, but remains the auto giant's largest parts supplier. GM and Delphi have conducted tough negotiations, covering pay rates, health care and pension benefits, with union groups in the past year in a bid to improve Delphi's fortunes.

GM also took a charge of $US324 million for restructuring its activities in its North America and Europe divisions, and $US394 million linked to taxes.

The group had a 2007 full-year net loss of nearly $US39 billion.

[Paxton]

And Ford made a First Quarter Profit.

Interesting...

Time to call off the death watch? FoMoCo makes a profit
DETROIT - They should be popping champagne corks in nearby Dearborn, as Ford Motor Company has posted a first-quarter profit of $100-million. That's 5-cents per share, and it's up from a $282-million loss for the first quarter of 2007. The big news is that even before Alan Mulally, under the "Way Forward" program, Ford had promised a return to profit by 2009. Whether the Blue Oval can sustain profit through a very tough 2008 is questionable, but for now at least, it has surpassed its own promise.

North America and Europe are both projected to have slow calendar year 2008 sales -- as low as 15.5-million in the U.S. -- yet that may not matter for the health of Ford. The company attributes all its first-quarter success on profits coming from outside of North America, and its ability to cut costs here and elsewhere. It is doing well in Europe. Its profit picture improved to the tune of $382 million despite the fact that gross revenue was $39.4 billion, down from $43 billion in Q1 '07.

"The results of this quarter are encouraging, particularly our outstanding performance in Europe and South America," president and CEO Mulally said in a prepared statement.

Ford lost $45 million pre-tax this first quarter, compared with a $613-million loss a year ago. Bean counters say the North American operations cut costs by $1.2 billion, including lower structure and product costs. By "product costs," read, the first of its savings from its employee reduction (layoffs and buyouts) and plant closings, leading to its Fall '07 contract with the United Auto Workers that allows it to buy out high-cost, senior employees and replace them with young, lower cost employees. First quarter revenue was $17.1 billion, down from $18.5 billion. Remember, while sales of low-profit Focuses are up, sales of high-profit F-150s and Lincoln Navigators are down.

In South America, Ford's pre-tax profit was $257 million, up from $113 million. Europe was the big success though, where pre-tax profits were $739 million, up from $219 million. Ford of Europe introduced a facelifted Focus just about the same time we got the "new" Focus with optional Synch. The European Focus, which costs more money and has a bigger profit margin, has been selling very briskly.

Volvo, soon to be Ford's sole European nameplate, lost $151 million, down from a profit of $94 million a year ago. Ford earned $49 million from its share of Mazda, up from $21 million in Q1 '07.

Overall, Ford burned through $6.5 billion of its cash, leaving $28.7 billion in reserves.

Its profit/loss picture looks much like the sales numbers General Motors posted earlier this week, in which GM had sales increases in every region except the recession-plagued (can we admit we're in one, yet?) U.S. market. GM will announce its first-quarter profit or loss on April 30.

Meanwhile, Mulally has become a hero on Wall Street with his 5-cents per share profit. Wall Street analysts were expecting a loss of 16-cents per share. And it's Ford's second profit-making quarter (the last was the second quarter of '07) since the Way Forward was announced in January 2006.

http://blogs.motortrend.com/6243722/...fit/index.html

[red_hotxr6]

It will be very interesting to see the figures for the first quarter with the new FG on sale..lol...watch the worm turn.... :

[prydey]

Originally Posted by red_hotxr6

It will be very interesting to see the figures for the first quarter with the new FG on sale..lol...watch the worm turn.... :

thats what everyone was saying when the ba debuted.

[XR4568]

Dont forget though there are very large costs associated with launching a new car. I would wait for 2nd quarter if it was me before i danced too much

Hope to be proven wrong though

[Bossxr8]

Kirk Kircocorkian? who I believe is one of GM's biggest shareholders has decided to buy into Fords shares, because he believes they truely are on the up and things can only get better.

[ILLaViTaR]

Originally Posted by csv8

GENERAL Motors reported a first-quarter loss of $US3.3bn ($3.8bn) citing weakness in the domestic auto industry and special charges.

The biggest US automaker said the loss amounted to $US5.74 per share. But the results were better than expected with one-time charges excluded.

Excluding exceptional items, the carmaker posted a loss of $US350 million, or 62 cents per share, far better than market expectations of $US1.54, and helped rev up interest in GM shares.

"The results may not be immediately comparable to the more sizeable loss analysts were expecting, but are still attracting attention'' from investors, Briefing.com analysts wrote in a client note.

GM shares roared higher by 9.4 per cent to $US23.20.
Total revenue in the first quarter fell slightly to $US42.7 billion from $US43.4 billion on lower North America automotive and financial services and insurance revenue.

Revenue at GM's North America (GMNA) division fell to $US24.5 billion from $US28.1 billion.

On Monday, GM announced it was cutting back production of pickup trucks and sport-utility vehicles because of weakening demand in the US market for the gas guzzlers amid soaring petrol prices.

GM cut its 2008 US total industry seasonally adjusted annual rate outlook "to the mid to high 15 million unit range,'' down from the low 16 million unit range.

The struggling automaker said it had combined earnings before taxes of $US1 billion in GM Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific (GMAP) and GM Europe (GME), which more than offset a loss at GM North America.

"We continue to leverage our global product portfolio to take advantage of tremendous growth in key emerging markets, while at the same time taking the appropriate actions to deal with the challenging economic conditions in the US,'' said GM chairman and chief executive Rick Wagoner.
GM took a non-cash charge of $US2.9 billion linked to several items.

Nearly half of the charge, $US1.45 billion was for the depreciation of its former financial services subsidiary, GMAC, which has been hard hit by the global credit squeeze.

GM retains a 49 per cent share in the unit after selling 51 per cent to a consortium led by private equity firm Cerberus in 2006.

The provision also includes a charge of $US731 million to increase the company's liability for estimated costs associated with Delphi's bankruptcy and restructuring efforts.

The auto parts maker was spun off from GM in 1999, but remains the auto giant's largest parts supplier. GM and Delphi have conducted tough negotiations, covering pay rates, health care and pension benefits, with union groups in the past year in a bid to improve Delphi's fortunes.

GM also took a charge of $US324 million for restructuring its activities in its North America and Europe divisions, and $US394 million linked to taxes.

The group had a 2007 full-year net loss of nearly $US39 billion.

Lol a few months ago all the Holden forum members were being smug about the record low Falcon sale. Guess this shuts them up.

[red_hotxr6]

AAh but the BA and the FG are as different as an EA and an EF......