GM Makes an Enormous Financial Turnaround.
07-31-07, 05:14 AM
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GM Makes an Enormous Financial Turnaround.
GM, now the world's second-largest automaker (yes, we all know who now is first) has made a huge economic turnaround in the Second Quarter of 2007.
Unfortunately, it may have been done by reneging on some of the responsibilities it signed off on, like GM retirees, their pensions, and health insurance....the article does not specifically state this, but like with Ford, much has been written in the press about this. I'm all for economization, but by reasonable means.....IMO, people who gave years and decades of their lives as GM empolyees and factory workers, sometimes suffering repetitive-motion injuries on the assembly lines, deserve some compensations in the retirements they have earned.
But it's hard to really tell, though, if the profits are coming at the expense of retirees.........GM's North American operations, where the most heavily unionized plants are outside of Europe, seem to be still losing money.
http://www.washingtonpost.com/wp-dyn...=moreheadlines
GM Has Profit After Big Loss a Year Ago
By TOM KRISHER
The Associated Press
Tuesday, July 31, 2007; 7:43 AM
DETROIT -- General Motors Corp. reported a second-quarter profit of $891 million on Tuesday, a huge reversal from the $3.4 billion loss it posted in the same period last year.
It was the third straight quarterly profit for the nation's largest automaker, which cited improved sales, especially in growing markets worldwide.
The profit amounted to $1.56 per share for the April-June period in contrast to a loss of $5.98 per share in the year-ago period.
"Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings," Chairman and Chief Executive Rick Wagoner said in a statement.
The automaker, though, continued to lose money in its home market, North America, where it reported a net loss from continuing operations of $39 million.
The results surpassed Wall Street expectations.
The profit came despite $520 million in charges associated with the bankruptcy reorganization of Delphi Corp., GM's former parts arm, and other restructuring costs for GM's North American unit.
GM said its adjusted net income, excluding the special items, was $1.4 billion, or $2.48 per share.
Fifteen analysts polled by Thomson Financial predicted earnings of $1.13 per share, excluding special items.
Unfortunately, it may have been done by reneging on some of the responsibilities it signed off on, like GM retirees, their pensions, and health insurance....the article does not specifically state this, but like with Ford, much has been written in the press about this. I'm all for economization, but by reasonable means.....IMO, people who gave years and decades of their lives as GM empolyees and factory workers, sometimes suffering repetitive-motion injuries on the assembly lines, deserve some compensations in the retirements they have earned.
But it's hard to really tell, though, if the profits are coming at the expense of retirees.........GM's North American operations, where the most heavily unionized plants are outside of Europe, seem to be still losing money.
http://www.washingtonpost.com/wp-dyn...=moreheadlines
GM Has Profit After Big Loss a Year Ago
By TOM KRISHER
The Associated Press
Tuesday, July 31, 2007; 7:43 AM
DETROIT -- General Motors Corp. reported a second-quarter profit of $891 million on Tuesday, a huge reversal from the $3.4 billion loss it posted in the same period last year.
It was the third straight quarterly profit for the nation's largest automaker, which cited improved sales, especially in growing markets worldwide.
The profit amounted to $1.56 per share for the April-June period in contrast to a loss of $5.98 per share in the year-ago period.
"Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings," Chairman and Chief Executive Rick Wagoner said in a statement.
The automaker, though, continued to lose money in its home market, North America, where it reported a net loss from continuing operations of $39 million.
The results surpassed Wall Street expectations.
The profit came despite $520 million in charges associated with the bankruptcy reorganization of Delphi Corp., GM's former parts arm, and other restructuring costs for GM's North American unit.
GM said its adjusted net income, excluding the special items, was $1.4 billion, or $2.48 per share.
Fifteen analysts polled by Thomson Financial predicted earnings of $1.13 per share, excluding special items.
. Ford turned out an unexpected profit this quarter too.
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