GM Posts $1.33B Profit in Sign of Growing Strength

[Hissyspit]

Source: Reuters

GM posts $1.33B profit in sign of growing strength

From Reuters
August 12, 2010|5:22 a.m.

General Motors Co posted its biggest quarterly profit in six years Thursday, a day ahead of an expected IPO filing that would open the gates for the U.S. government to slash its stake in the automaker.

The top U.S. automaker reported second-quarter net earnings of $1.3 billion, compared with $865 million in the first quarter. The second-quarter profit was the largest since 2004.

The results reflected a 47 percent surge in global production from the depressed levels of a year earlier when GM began operating under bankruptcy protection in a restructuring that included $50 billion in U.S. government funding.

The stronger profit also showed the gains GM has made from cost-cutting during bankruptcy and stronger sales in overseas markets led by China.

Read more: http://www.latimes.com/business/la-fiw-gm-earnings-20100812,0,2389126.story

[WannaJumpMyScooter]

1. how much of that is being repaid

to, uh, us?

[Botany]

2. every penny the u.s. government has put into g.m. has or will be ...

.... paid back and w/ interest too. This includes 8.1 billion in loans that was paid back last April
and 56.7 billion in stock that will be bought back after G.M. is allowed an I.P.O. by the court.

[Omaha Steve]

10. Correct

And had ANY of the BIG 3 gone under, the job losses would have included suppliers too. Nebraska has over 500 jobs dependent on US car makers including Eaton. Many that were laid off during last years car sales slump are back at work in Ne. and Ia.

K&R!

[Lightning Count]

12. Incorrect. We are still down about 49 Billion.

http://www.forbes.com/2010/04/23/general-motors-economy-bailout-opinions-columnists-shikha-dalmia.html

[Botany]

16. Way to site a right wing source that is out of date

Shikha Dalmia is paid to push a certain agenda.

In April 2010 G.M. paid back the loan part of the bail out (and w/ interest)
and in late Summer/Early Fall 2010 the lion's share of the bail out, stocks
owned by the Government will be bought back after the court allows G.M.
to offer stock.

[Lightning Count]

18. She lays out the facts and details quite well.

If you wish to dispute those, then please do so.

Once again, GM has not made nearly enough to pay back the loan so how did they do so?

Don't believe rich Texans when the get on TV and tell you things.

http://en.wikipedia.org/wiki/Edward_Whitacre,_Jr.

Especially when he pays his buddy 3K per hour.

http://money.cnn.com/2010/02/22/autos/gm_fritz_henderson.fortune/?section=magazines_fortune

More info on the IPO

http://www.ibtimes.com/articles/42891/20100812/general-motors-results-gm-automakers-manufacturer-ipo.htm

[Roland99]

3. I'm actually considering a GM vehicle for the first time in my 27 years of driving

[democrat_patriot]

4. So...when do they start hiring again?

[cbdo2007]

6. Right cause according to DU math....

$1.33 Billion = 38,000 new employees making $35,000 each!!! I'm sure they'll start hiring today.

[4lbs]

13. When the demand for cars outstrips their supply, which is the normal way it's done.

Just because a company posts a huge profit doesn't mean they'll start hiring a bunch of people.

If a company produces a million things a year, and makes a billion dollars off selling them, it's not going to hire anyone new, unless the demand increases.

Now, if it can only produce a million things per year with it's current workload, but it finds that 1.25 million people want to buy, that's when it hires people, so it can make more (that extra 250,000 demanded that it can't produce with the current workload).

Huge profits != hiring.

Look at any company that has made a billion or more profit per quarter for the last 3 or 4 quarters. They aren't hiring tens of thousands.

Insurance companies make a billion dollars profit per month, yet I don't recall them hiring 10,000 more people a month.

Oil companies the same way.

Apple? It has reported a huge increase in profit because of iPhone and iPod sales the past several quarters, the past year. So, I don't see them hiring 20,000 workers. That's because Apple's current production with it's current amount of workers can meet the demand of consumers. If demand increased even more to the point where it couldn't produce enough, then it will hire new workers.

You only hire when the demand is higher than your current workers' ability to produce enough product to meet that demand.

However, the car companies have hired 55,000 people over the past year. These were people that were layed off at the beginning of Obama's presidency, but have been put back to work after the auto bailout.

So, if anyone asks who the auto bailout helped, well, what about those 55,000 workers that got their jobs back?

[tammywammy]

25. +1 n/t

[boomerbust]

5. Good news

Obama should be all over this today, but I doubt He will, being afraid of being tagged a "Professional Leftie".

[jayfish]

7. I'm Sure This Story Will Get The One Minute Of Coverage It Deserves Tonight.

Then when the next poll comes out showing a disconnect between what people think and what is actually happening; the media will fall all over themselves wondering how it could be.

FSH

[Romulox]

8. ...

:shrug:

[groundloop]

9. How is Faux News going to spin this? "IPO... US govt slashes stake in GM"

In other words the US will no longer own GM, we will have made a profit while helping to save thousands of jobs and an important segment of the economy, all while Faux and PillHeadRush are claiming the US nationalized GM.

[Lightning Count]

11. Given that we are owed 50 Billion that is unlikely for the time being.

Don't believe the corporate propaganda.

http://www.forbes.com/2010/04/23/general-motors-economy-bailout-opinions-columnists-shikha-dalmia.html

[Botany]

14. What part of that will be paid back aka a stock buy back when G.M. has ..

.... it's I.P.O. don't you understand?

You might want to do the google about the author of the work you keep posting.

Shikha Dalmia = The Reason Foundation = Right Wing Pro Big Business / No Regulations / Free Market Claptrap

[Lightning Count]

15. In previous posts you said that we've already been paid back.

What has changed?

The IPO is going to raise 49 Billion? That would be impressive.

She lays out all the details. If you want to refute any of those, please do so.

[Botany]

17. once more

The "loan portion" of bail out package, 8.1 billion was paid back and w/ interest 5 years early
last April.

The rest will be paid back and at a profit when G.M. buys back the stock after the IPO.


4/22/10

"Fallen giant General Motors Co. accelerated toward recovery Wednesday, announcing the repayment of
$8.1 billion in U.S. and Canadian government loans five years ahead of schedule."

http://firedoglake.com/2010/04/22/gm-pays-back-governme... /



"On June 1, 2009, the company filed for a Chapter 11 reorganization, which was completed on July 10 of the same year, and it was
thereafter reorganized once a new entity acquired the most valuable assets. GM is now temporarily majority owned by the United
States Treasury and, to a smaller extent, the Canada Development Investment Corporation and the government of Ontario,
with the U.S. government investing a total of US$57.6 billion under the Troubled Asset Relief Program."

http://en.wikipedia.org/wiki/General_Motors

[Lightning Count]

19. Let's break it down.

GM has made nowhere near 8.1 Billion. How did they pay it back?

Even the government only expects GM to pay back a quarter or at least a quarter of the stock will be sold.

http://www.ibtimes.com/articles/42891/20100812/general-motors-results-gm-automakers-manufacturer-ipo.htm

You are too easily swayed by what rich Texans tell you on the teevee.

Maybe Fritz can answer these questions?

http://money.cnn.com/2010/02/22/autos/gm_fritz_henderson.fortune/?section=magazines_fortune

[Igel]

27. The short-term debt was repaid.

They had money sitting around that they thought they'd need but didn't need.

That money was "borrowed" from the government in exchange for part-ownership.

The key word in the phrase "temporarily majority owned" by the government is "majority owned." I don't think I'd like tracking down the link, but the goal is to make the government a minority partner and leave it at that. That means the entirety of the $50 billion or so stake in GM assets that the government owns would be reduced but the full amount wouldn't be repaid. Just as well, since the amount of stock owed to the government is highly unlikely to cover the amount of money owed to the government.

So you're part wrong. But mostly right.

[Lightning Count]

28. Thanks for the clarification.

That makes sense.

[DainBramaged]

20. Hmmm, instead of being pleased the company has begun a turnaround, people in this thread are ONLY

worried about the Government being paid back.


Is that the same meme the Pukes are screaming about the deficit instead of worrying about America going back to work???


You folks are absolutely CLUELESS as to how this works. Additionally, GM has over $35 BILLION in cash and securities ON HAND for day to day operations. And when the IPO is announced, the US Government will GLADLY sell the 60+% of GM shares to regain the monies they loaned them.


If it was Toyota or Honda (recovering in this situation), you folks would be cheering like seals.

[Lightning Count]

21. Incorrect

I am very pleased the company is doing well, but I think accuracy is important. Also, I trust Whitacre about as far as I can throw him.

[DainBramaged]

22. Well then buy a share and get the financials

if GM is your focus, than a good hobby is recommended.

[Lightning Count]

23. Had plenty of GM shares the last time.

Before I didn't have any. :)

I predict that GM will do well for 2 or 3 years and then the public will forget about the Toyota fiasco. They will go back to complaining about GM interiors and rave about Toyota's because the coffee cup holder has a temperature sensor or some nonsense. Sadly, no one realizes that the solution to a lot of our woes is to have pride in buying American.

[DainBramaged]

24. There are about two dozen of us here that have GREAT pride in buying American

read my journal............

:hi:

[Lightning Count]

26. I shall check it out.

Sadly, 2 dozen is even lower than I expected.