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G.m. Posts Its First Profit In 3 Years As Sales Rise 40 Percent

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http://www.nytimes.com/2010/05/18/business/18auto.html?ref=business

DETROIT — General Motors said Monday it earned $865 million in the first quarter, its first profit since 2007, after last year’s government-sponsored bankruptcy allowed the carmaker to wipe away many of its longstanding burdens.

G.M. said revenue was up 40 percent, to $31.5 billion, and it had positive cash flow of $1 billion.

The results show that G.M. is on track to become a public company again as soon as the fourth quarter, allowing the government to recover more of the billions of dollars it spent preventing G.M.’s collapse.

The company earned $1.2 billion before interest and taxes in North America, the region where G.M. had sustained most of its losses in recent years. In the fourth quarter, G.M. lost $3.4 billion in North America.

Worldwide, G.M. earned $1.7 billion before interest and taxes.

European operations lost $500 million.

“We’re pleased with our first quarter performance, in particular achieving profitability,” Christopher P. Liddell, the chief financial officer, said in a statement. “In North America we are adding production to keep up with strong demand for new products in our four brands. We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet.”

“These are all important steps as we lay the foundation for a successful G.M.” he said.

The overall profit for the first quarter compares with a loss of $6 billion by the old G.M. a year earlier.

The news comes several weeks after G.M. repaid the balance of its $8.2 billion loans from the American and Canadian governments. G.M. aired commercials featuring its chief executive, Edward E. Whitacre Jr., highlighting the loan repayment, but critics, including some members of Congress, accused the company of misleading consumers into thinking all $50 billion given to the company had been repaid.

The Treasury Department still owns 61 percent of G.M., a stake it received in exchange for most of the money it gave to the carmaker. Taxpayers can recoup that money only through the sale of that stock.

Looks like the Toyota fiasco worked out well then.

More good news for the recovery!

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With deals like $8000 in credits, and $1500 free extras, and / or up to 60 months interest free credit..... it just makes me wonder how much profit they (should) have been making before!

http://www.gm.ca/gm/

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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