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General Motors Profit ‘More Than Triples’

From a cheering Reuters:

GM profit beats, but vehicle prices hit shares

By Ben Klayman And Bernie Woodall
May 5, 2011

DETROIT (Reuters) – General Motors Co posted stronger-than-expected quarterly profit, driven by a recovery in the U.S. market and strong sales in Asia, but vehicle prices disappointed analysts and its shares fell 3 percent.

Funny how we hear no mention of the problems that their top competitors from Japan, notably Toyota, are having thanks to the earthquake and tsunami. That detail is saved for the last two paragraphs of this very long article.

Quarterly net profit more than tripled from a year ago and its operating profit narrowly beat expectations

They have tripled their profit, and yet they are only narrowly beating expectations?

Meanwhile, where are the calls for a ‘windfall profit’ tax? Or are windfall profits okay as long as they go to the United Auto Workers?

GM’s results follow those of rival Ford Motor Co, which last week posted its best first-quarter profit in 13 years…

In addition to its strength in China, GM’s sales in its home North American market remain strong. GM’s sales in China for the quarter were 686,000, some 2,000 more than in North America.

How many of those cars sold in China were made in the USA?

Its April sales rose 26 percent and it retook the top spot it lost to Ford the prior month

Just wait until the UAW brings down Ford this year. Then they won’t have any concerns from that quarter.

GM’s net income in the first quarter rose to $3.2 billion, or $1.77 a share, compared with $900 million, or 55 cents a share, in the year earlier quarter.

What excellent timing, since Mr. Obama wants to dump all of his shares of GM before the elections.

It was GM’s fifth consecutive quarterly profit

Maybe it’s time for GM to begin to pay taxes again. And maybe it’s time they should pay the US taxpayers back.

It’s not until the 29th paragraph of this 30 paragraph long article that we get any mention of the Japanese earthquake and tsunami.

The automaker said it continues to expect no material impact on full-year results from the March 11 earthquake and tsunami in Japan, but Ammann was not specific in detailing how GM would react to the shortage of Japanese-made vehicles in the coming months.

In fact, due to the struggles of Toyota Motor Corp and other Japanese automakers due to the Japan crisis, GM stands in 2011 to gain 1.1 percentage points in market share, and boost this year’s profits before interest and taxes by $1 billion, UBS analyst Colin Langan said in a research note.

By the way, there was no mention of the Volt in this entire article. Even though the Volt is the car that is supposed to save General Motors.

This article was posted by Steve on Thursday, May 5th, 2011. Comments are currently closed.

3 Responses to “General Motors Profit ‘More Than Triples’”

  1. Right of the People says:

    I read somewhere GM solved the problem with the Volt. They installed an on-board fire extinguisher.

    Traded my beloved Cadillac for a Lincoln. I was going to buy another Caddy but couldn’t bring myself to do it.

  2. proreason says:

    Why are we subsidizing Obamy-China-Motors?

  3. tranquil.night says:

    How much in US Treasuries were ‘purchased’? Those are assets too.

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