General Motors today said its first quarter earnings fell 90 percent to $62 million, significantly missing Wall Street estimates. GM says the decrease can be blamed on losses in the residential mortgage business of GMAC Financial Services. The good news is income from GM’s automotive operations managed to turn a profit of $272 million — down only slightly from last year’s $295 million.
On an adjusted basis, GM reported earnings of $304 for its automotive operations, much higher than the $40 million recorded for the year-ago quarter.
GM sold an all-time first quarter record 2.26 million cars and trucks in the first quarter of 2007, up 3 percent, or 67,000 units, over the first quarter of 2006. Sales in the GM Asia Pacific (GMAP) region grew more than 20 percent; GM Latin America, Africa and Middle East (GMLAAM) grew 17 percent, and GM Europe (GME) grew 6 percent. GM’s all-time sales record was achieved despite challenging market conditions in the U.S.
GM North America (GMNA) posted an adjusted loss of $85 million in the first quarter of 2007 (reported net loss of $46 million), an improvement of $166 million compared to an adjusted net loss of $251 million in the year-ago quarter (reported net loss of $292 million).
“This quarter’s results again demonstrate progress in the implementation of our North America turnaround plan. They reflect major cost reductions once again, which more than offset lower volume – a function of the disciplined implementation of our product-based sales and marketing strategy,” CEO Rick Wagoner said. “And, our newest products such as the GMC Acadia and Chevrolet Silverado have been well accepted by consumers, which gives us confidence that the most important element of our North America turnaround – product excellence – is well on track.”
05/03, 11:39 AM
posted by:
CTS DRIVER
they really need to get out of the home morgage department and get back to cars. speaking of hopless morons….hi homeboy.
05/03, 11:45 AM
posted by:
PrimeGTP
Drop Financial Services, there is absolutely no point in it. Whoever buys Chrysler is likely to drop their financial division as well.
Something tells me homegirl never bothered to read the article, and thinks GM’s auto sales are down 90%.
05/03, 11:53 AM
posted by:
global_lightning
- To summarize, GM turns a profit everywhere in the world except for it’s home country. I think Saturn and GMC will become GM’s new sales leaders, while Chevy and Pontiac become virtual subsidaries of rental fleets.
- GMAC is very profitable for GM, and unfortunately they’ll be sucked into the whole subprime mortgage mess. Next cloud on the horizon may be defaulted subprime autoloans, which threatens to dumps thousands of cheap reposessed cars on the market, further competing against GM new car sales.
- Overall, it’s not so bad for GM and hopefully if they can survive these bumps then they’ll be back on the road to being #1
05/03, 12:16 PM
posted by:
Syrax
” CEO Rick Wagoner said. “And, our newest products such as the GMC Acadia and Chevrolet Silverado have been well accepted by consumers”
Wasn’t they saying a few posts ago that the Silverado wasn’t selling as much as the old ones?
05/03, 1:11 PM
posted by:
Richard
Syrax wrote “Wasn’t they saying a few posts ago that the Silverado wasn’t selling as much as the old ones?”
Weren’t they. At any rate, you misunderstood. The GMT900 trucks are not selling as well as hoped, but they are selling well and with fewer incentives than the GMT800 models. Here in the heart of pickup truck country, the GMT900s seem to have really taken off.
05/03, 1:27 PM
posted by:
MHW
Homelyboy, do the World a favor and don’t reproduce!
05/03, 1:52 PM
posted by:
TOZO
At least they made money. And if I know GM, they’ll cook the accounting books and make these numbers larger again soon. Last year’s Q1 profit was originally released as -$300 million, and then a little while later, BOOM: profit of $600 million! That’s right: GM with possibly a new trick up its sleeve!
05/03, 6:14 PM
posted by:
Syrax
tks, richard. I’m trying to improve my english…and tks for the explanation also. i don’t see many GMTs at all around here – chevy doesn’t care about south america when it comes to trucks (not that i’m looking for one)
05/04, 1:41 PM
posted by:
lamboz get a life
(EDITED FOR CONTENT)
05/04, 5:23 PM
posted by:
CTS DRIVER
tks, richard. I’m trying to improve my english…and tks for the explanation also. i don’t see many GMTs at all around here – chevy doesn’t care about south america when it comes to trucks (not that i’m looking for one)
Comment by Syrax, posted on May3 at 6:14 pm
dude your english is really good, i would have never guessed it wasnt your first language.
05/05, 9:34 AM
posted by:
WEKS
Just by reading the comments posted here I can estimate that the average age around here is 14… possibly 15.