GM Preliminary 3rd Quarter: $1.9 - 2.1 Billion PROFIT

[FenwickHockey65]

GM Provides Preliminary Third Quarter Results
Company expects to post third quarter net income attributable to common stockholders of $1.9-$2.1 billion and earnings before interest and tax (EBIT) of $2.2-$2.4 billion
Link to Press Release

November 3, 2010

DETROIT, Mich. – General Motors Company announced today that for the third quarter, ending September 30, 2010, the company expects to generate:

* Revenue of approximately $34 billion
* Net income attributable to common stockholders of $1.9-$2.1 billion and
* Earnings before interest and taxes (EBIT) of $2.2-$2.4 billion

For the first nine months of the year, GM estimates:

* Revenue of $99 billion
* Net income attributable to common stockholders of $4.0-$4.2 billion and
* EBIT of $6.0-$6.2 billion

The company also announced it expects to generate positive EBIT in the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, due to the fourth quarter having a different production mix, new vehicle launch costs (in particular the Chevrolet Cruze and Volt) and higher engineering expenses for future products.

“We are extremely pleased with the level of progress the company is making," said Chris Liddell, GM vice chairman and chief financial officer. “We will deliver a solid and profitable first year post-bankruptcy, and we are continuing to improve our balance sheet and most importantly, the quality of our vehicles.”

GM will release details of its third quarter results on Wednesday, November 10, 2010 at 7:30 a.m. ET via GM Media Online (http://media.gm.com) and PR Newswire.

[Sax1031]

Very very good news.

[DGthe3]

What was Ford's Q3 profit, $1.7B?

[FenwickHockey65]

Originally Posted by DGthe3

What was Ford's Q3 profit, $1.7B?

Yes, something around that.

[a_Username]

I recall that one article said that the last two quarters of this year would be slower than the first two? Someone appears to be wrong thus far.

[2010 SSRS]

GM is kicking Azz.

[DGthe3]

Originally Posted by a_Username

I recall that one article said that the last two quarters of this year would be slower than the first two? Someone appears to be wrong thus far.

Someone made an incorrect economic prediction? I don't believe it.

[syr74]

Originally Posted by a_Username

I recall that one article said that the last two quarters of this year would be slower than the first two? Someone appears to be wrong thus far.

Don't read too much into that prediction or hammer them too hard for making it, they're just responding to trends. Typically third quarter sales results are weaker for various reasons, in fact companies usually plan for it to end up that way.

The fact that GM is just about the have their IPO meant that, unlike the norm, it was in their best interest to have a better than average 3rd quarter, Throw in the fact that Ford posted good results too and the folks taking the 'safe bet' for 3rd quarter results look foolish to a lot of folks.

Ultimately, they were just going with the odds.

[a_Username]

Originally Posted by syr74

Don't read too much into that prediction or hammer them too hard for making it, they're just responding to trends. Typically third quarter sales results are weaker for various reasons, in fact companies usually plan for it to end up that way.

The fact that GM is just about the have their IPO meant that, unlike the norm, it was in their best interest to have a better than average 3rd quarter, Throw in the fact that Ford posted good results too and the folks taking the 'safe bet' for 3rd quarter results look foolish to a lot of folks.

Ultimately, they were just going with the odds.

I know, but I only say this because it reminds me of this quote about the ones who believe they, usually interventionists, can determine the future course of economic events based on statistics:

The specific experience with which economics and economic statistics are concerned always refers to the past. It is history, and as such does not provide knowledge about a regularity that will manifest itself also in the future.