With Opel Back In Black, GM Records $2.5b Profit in Q2

Edward Niedermeyer
by Edward Niedermeyer

GM has announced its Q2 earnings [ Analyst slides in PDF here], and the firm has recorded a healthy $2.5b profit for the quarter on strong North American performance and an end to losses from the European Opel division. In fact, on an EBIT (earnings before interest and taxes) basis, all of GM’s global divisions were in the black last quarter, although GM Europe and GM South America both recorded modest $100m gains and GMIO (which includes the lucrative Chinese market) recorded a $600m EBIT. The powerhouse continues to be GM North America, which recorded $2.2b in EBIT, continuing North America’s post-bailout importance as the driver of GM’s financial results. Globally, a $600m reduction in EBIT due to costs and “other” was offset by the same amount of gains in volume/mix, while pricing added a billion dollars to overall EBIT. And though fleet sales were up in North America, incentives for the quarter appear to have hit record lows. [Hit the jump for global deliveries and market share/fleet data, via GM’s financial highlights release].




Edward Niedermeyer
Edward Niedermeyer

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  • Mikey Mikey on Aug 04, 2011

    I don't follow the stock market that close. The ups, and downs,and ins, and outs, are beyond my thinking. Thats kind'a why I pay an expert to do it for me. However I do understand basic math. Yup, GM stock is down, Ford to. Look even Toyota. Royal Bank of Canada, a major blue chip is down. Oil is bellow $100,and falling. The Loony, and the Greenback are moving a little closer. WTF does it all mean,and what are the ramifications? I havn't a clue. So prey tell,.. "highdesertcat" How can you possibly predict that the taxpayers of United States and Canada,and for that matter the UAW will not get thier money back?

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    • Pch101 Pch101 on Aug 04, 2011
      @highdesertcat Every time GM makes a profit, give half of it back to the US Treasury. Every time GM makes a profit, it's obliged to give 35% of it back to the US Treasury.
  • Mikey Mikey on Aug 04, 2011

    @highdesertcat...Let me ask you this. No matter how you got there,the U.S. tax payers own 32% of GM.....Right? So... as a US taxpayer,would you rather GM make a profit, or not?

    • See 2 previous
    • Type57SC Type57SC on Aug 05, 2011

      @highdesertcat You're worried about $1.3B from the government to Chrysler? We gave that in foreign aid to each of Egypt, Pakistan and Afganistan last year. It's probably the cost of one F22 engine. It's about 1/100th of AIG losses. not exactly a huge cost for lower chapter 7 liquidation impacts on america of Chrysler shutting down (no DIP lender would touch it as a Chapter 11).

  • TurboDeezl TurboDeezl on Aug 04, 2011

    The General is back. Deathwatch? LOL

  • Mike Kelley Mike Kelley on Aug 07, 2011

    I wouldn't expect GM to be paying a lot of taxes in the future: http://online.wsj.com/article/SB10001424052748704462704575590642149103202.html

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