xcel
07-31-2007, 12:56 PM
Slower-than-expected sales GM's new full-size pickup have hurt GM, which still relies heavily on sales of highly profitable trucks and SUV's. (http://www.detnews.com/apps/pbcs.dll/article?AID=/20070731/UPDATE/707310405/1148/AUTO01)
http://www.cleanmpg.com/photos/data/501/GM_Logo.jpgSharon Terlep - Detroit News - July 31, 2007
Finally some good news from the largest automobile manufacturer in the US.
General Motors Corp. turned a profit for the third straight quarter, the company announced Tuesday, signaling some steady progress in its turnaround plan.
The automaker posted an $891 million profit for the second three months of the year, a marked improvement from a year ago when GM lost $3.4 billion in the same period.
Savings from last year's plant closings and job cuts along with a better-than-expected performance from its former financial arm helped GM turn a profit even with a reduction in overall revenue.
Tuesday's financial results were affected by certain special charges such as $375 million spent on the bailout of former subsidiary Delphi Corp. and $888 million in restructuring costs. But for those charges, GM said, its earnings would have been more than $1.4 billion.
Despite the gains, the automaker is still losing money on its critical North American operations, though not as much as a year ago. GM North America lost $39 million in the second quarter, compared to a $3.95 billion loss a year ago.
"In North America we continue to make progress with our focus on great new products, a disciplined sales and marketing strategy, and structural cost reduction, although profitability remains close to breakeven," GM Chief Executive Officer Rick Wagoner said in a statement. "But our current earnings clearly demonstrate we've got more to do."
… http://www.detnews.com/apps/pbcs.dll/article?AID=/20070731/UPDATE/707310405/1148/AUTO01
http://www.cleanmpg.com/photos/data/501/GM_Logo.jpgSharon Terlep - Detroit News - July 31, 2007
Finally some good news from the largest automobile manufacturer in the US.
General Motors Corp. turned a profit for the third straight quarter, the company announced Tuesday, signaling some steady progress in its turnaround plan.
The automaker posted an $891 million profit for the second three months of the year, a marked improvement from a year ago when GM lost $3.4 billion in the same period.
Savings from last year's plant closings and job cuts along with a better-than-expected performance from its former financial arm helped GM turn a profit even with a reduction in overall revenue.
Tuesday's financial results were affected by certain special charges such as $375 million spent on the bailout of former subsidiary Delphi Corp. and $888 million in restructuring costs. But for those charges, GM said, its earnings would have been more than $1.4 billion.
Despite the gains, the automaker is still losing money on its critical North American operations, though not as much as a year ago. GM North America lost $39 million in the second quarter, compared to a $3.95 billion loss a year ago.
"In North America we continue to make progress with our focus on great new products, a disciplined sales and marketing strategy, and structural cost reduction, although profitability remains close to breakeven," GM Chief Executive Officer Rick Wagoner said in a statement. "But our current earnings clearly demonstrate we've got more to do."
… http://www.detnews.com/apps/pbcs.dll/article?AID=/20070731/UPDATE/707310405/1148/AUTO01