By on April 14, 2010

Don’t ask Chairman/CEO Ed Whitacre. His only comments so far on GM’s Q1 2010 performance comes from a memo leaked to Reuters, in which he says:

In January, I said we could earn a profit in 2010, if everything falls into place. Our first quarter financial results will show us an important milestone, and I’m pleased to say that I anticipate solid operating results when we report our first quarter financials in May

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21 Comments on “Did GM Lose Money Again In Q1?...”


  • avatar
    TexN

    “What the hell is Whitacre trying to say?”

    Whitacre said exactly what he wanted to say: NOTHING!

  • avatar

    Too big to fail, but still big enough to burn OUR money in a huge bonfire. =

  • avatar
    FleetofWheel

    Instead of the tired old ‘profitability’ number, maybe the government will deem that GM should be measured by how well it’s stake holders, the suppliers, unions and health care alliances fared in the preceding quarter.

  • avatar
    Steven02

    I don’t know how you could say that he is expecting anything but a profit in the first quarter. What else could be an important milestone?

  • avatar
    jpcavanaugh

    “. . .and I’m pleased to say that I anticipate solid operating results when we report our first quarter financials in May.

    Translation: “We have some guys who are pretty good with numbers, and I reckon that after we give ‘em about 45 days to work the figures, they’ll have a profit on the books for us for the First Quarter.”

    Alternate translation: “We are still working with the legacy of Rick Waggoner’s finance unit, and we haven’t a friggin clue whether we made money in the first quarter or not, but we have some new guys pulling things together and we’ll know in about a month.”

  • avatar

    “Did GM Lose Money Again In Q1?”

    Does a bear shit in the woods?

  • avatar
    SkiD666

    My guess @ Q1 results:
    -car business profitable everywhere except Europe
    -GM spent a lot of money on R&D / retooling
    -transfered a lot of their cash reserves to loan repayments / retirement fund topup
    -Jan. 1 VEBA payment significantly improving cash flow
    -spent a lot of money on Opel restructuring (even more will have to spent in next couple of quarters

    In other words, GM is about a year behind Ford WRT to profitability but without some of Ford’s liabilities

  • avatar
    cykickspy

    how soon we forget:

    http://www.marketwatch.com/story/toyota-on-track-for-first-ever-loss-in-fiscal-2009

  • avatar
    mdwheary

    I believe Whitacre is using doublespeak for SNAFU.

  • avatar
    wallstreet

    Why is GM reporting 1Q result in May? Didn’t the quarter ends on March 31st?

    • 0 avatar
      Steven02

      Just finished with the fresh start accounting and the last 2 quarters. For a huge company with a large amount of assets, that would take awhile. That is the reason for the delay in this quarters numbers.

  • avatar
    Zarba

    Is it me, or does the picture of Whitaker in the background look eerily like the classic “1984” Apple Macintosh ad?

  • avatar
    Robert.Walter

    Operating means results before all the special and one-time charges are figured-in.

    In the past, Ford posted an operating profit, but after all the cash-draining charges were piled-on, they suffered a loss for that quarter. They did, however, take pains to emphasize the operating profit, using this as proof that their restructuring efforts were begining to gain traction.

    Another time, Ford showed an operating loss, but due to winning a tax-challenge issue with the IRS, and the money they got back (or didn’t have to pay-out, but could release from an account reserved for paying in the event they lost) became a one-time credit to the quarterly result, and so despite burning cash on the operating side, they posted a profit for that quarter.

    My guess is that the charges will drag an either black, or slightly-less red than a year ago, quarter down. If this is the case, expect that GM will emphasize that on an operating basis, the company is improving … and that this rate of improvement will continue, or increase … this will be the message GM will try to sell to the markets.

  • avatar
    GarbageMotorsCo.

    What do they need to earn a profit for? They already made 60 billion in 2009, that’s plenty of cash to pay for a few more golden parachuttes.

  • avatar
    mtymsi

    Whitacre is a master at both avoiding the press and saying nothing of substance when infrequently corralled. Not exactly the kind of CEO that gives me the warm and fuzzies about an IPO.


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