G.m., Days Away From Stock Offering, Posts $2 Billion Profit

[interestrateripoff]

http://www.nytimes.com/2010/11/11/business/11auto.html?_r=1&ref=business

A week before its initial public offering, General Motors reported its largest quarterly profit in 11 years on Wednesday, showing that the slimmed-down automaker no longer needed huge sales to generate significant earnings.

G.M. said it earned $2 billion in the third quarter, nearly equaling its profit for the first half of 2010. G.M. earned $4.2 billion from January through September.

The company said it expected to report a fourth-quarter profit, at least before accounting for interest and taxes, though “at a significantly lower run rate than each of the first three quarters,” and a full-year profit for the first time since 2004.

.........

Three years ago, G.M. needed to sell nearly four million vehicles a year in the United States to break even, but today, it can be profitable at roughly half that sales volume, Mr. Liddell said in the video. Hourly labor costs have been cut by more than two-thirds, to $5 billion, from $16 billion in 2005, he said.

Quick better buy some of this IPO it's clearly going to be a big profit maker. Good figures released just before an IPO, shock horror.

[Bloo Loo]

Amazing how profitable something can become after its gone bankrupt and shafted those its owes.

Im not sure who has been shafted, its not clear, and it could be that the government has been paying everyone out of its non existent resources.

I queried this with a topic yesterday, but nobody replied, so I guess I am not the only one who cant see how this is possible any other way.

Course, the Management claim they are the geneii behind it, but, as IRRO says, bailout outs usually cure, but the debt remains.

[stuckmojo]

Amazing how profitable something can become after its gone bankrupt and shafted those its owes.

not unlike some BTL landlord gone bankrupt and back in the game after 1 year of purgatory.

******ing shit, this is. They should brand a "B" on the forehead of bankrupt people. A bit like the swastika in "Inglorious Bastards"

[Bloo Loo]

not unlike some BTL landlord gone bankrupt and back in the game after 1 year of purgatory.

******ing shit, this is. They should brand a "B" on the forehead of bankrupt people. A bit like the swastika in "Inglorious Bastards"

dont worry, before the crunch, bankers only weapon was to stigmatise you, they still try but nobody cares anymore.

Maybe you would like a barcode on the wrist of every failed entreprenuer?

course, you do realise that YOU as a UK citizen is bankrupt....you needed a cash bailout of £200bn.

[Olebrum]

Wow they made 2 billion?

That's only another 28 billion to pay back then, no?

[interestrateripoff]

Upsized GM IPO could be biggest U.S. deal ever

General Motors Co GM.UL is boosting the size of its common stock offering by more than 30 percent to $15.5 billion (9.7 billion pounds), two people familiar with the matter said, potentially making its landmark IPO the largest U.S. offering ever.

The expansion comes in response to surging demand from investors, who had put in orders worth $70 billion for GM's common shares by late on Tuesday, the sources said.

GM's initial public offering, which will reduce the U.S. Treasury to a minority shareholder in the top U.S. automaker, could raise nearly $23 billion if underwriters exercise the full overallotment option on both common and preferred shares.

The deal could also pay back over $15 billion to the U.S. government, assuming that shares price at the high end of the range and all of the common stock on offer is sold.

That would take the Obama administration closer to break-even on a still controversial bailout that some critics had predicted would be a financial quagmire for taxpayers.

The largest U.S. IPO to date was Visa Inc's (V.N) $19.7 billion stock sale in 2008.

Demand surging, is this from the free money Bernanke is printing?

Wow $15bn to be paid back to the govt, that will help reduce $1tr plus deficit this year.....

[Bloo Loo]

Thanks trickester for the links.

Now, who is paying for "bad" GM?

And if its the Government, that $2bn, belongs to the taxpayer.

course, bankers also are making billions, yet they still have a "Liquidity" problem.

Odd.

[interestrateripoff]

http://www.telegraph.co.uk/finance/newsbysector/transport/general-motors/8142111/GM-roars-back-to-stock-market-in-20bn-float.html

After a final day of frenzied orders for GM shares, the Detroit-based company said that it had raised $20.1bn (12.6bn pounds) selling shares at $33 each. It has the option to sell up to $23.1bn, which would eclipse Agricultural Bank of China as the biggest flotation in history. The shares in GM, an icon of US manufacturing for more than a century, will start trading on the New York Stock Exchange today.

The almost $50bn bail-out in June 2009 sparked controversy but has allowed GM to cut costs, restructure its debt and change its management. With an improvement in the global economy, the carmaker has notched up earnings of $4bn so far this year and is on course for its first annual profit since 2004.

“That GM has come this far is certainly a commendable achievement,” said Howard Wheeldon, an analyst at BGC Partners.

Yeah success.

[shindigger]

not unlike some BTL landlord gone bankrupt and back in the game after 1 year of purgatory.

******ing shit, this is. They should brand a "B" on the forehead of bankrupt people. A bit like the swastika in "Inglorious Bastards"

Also not a million miles away from the Tescos model, where the increasingly desperate and unpopular former PM pays half your wage bill in the form of tax credits. :angry:

Even i could make a profit in those circumstances.

Its rape thats what it is.

[ftbinthewaiting]

"Three years ago, G.M. needed to sell nearly four million vehicles a year in the United States to break even, but today, it can be profitable at roughly half that sales volume, Mr. Liddell said in the video. Hourly labor costs have been cut by more than two-thirds, to $5 billion, from $16 billion in 2005, he said."

Less workers? Workers paid less? Working fewer hours?

The trouble here is that whilst the companies make short term record profits, longer term, their home market is disappearing as noone will have any cash to buy stuff. All jobless, being paid less or working fewer hours.

Edited November 19, 2010 by ftbinthewaiting

[interestrateripoff]

http://uk.reuters.com/article/idUKTRE6AQ01F20101127

General Motors Co's (GM.N) initial public offering became the world's biggest at $23.1 billion (14.7 billion pounds) after underwriters swiftly took up additional shares following last week's IPO.

The added shares vaulted GM past Agricultural Bank of China's (601288.SS) $22.1 billion IPO in July and underscored the strong demand for the taxpayer-rescued automaker's stock.

GM said on Friday that underwriters led by Morgan Stanley (MS.N), JPMorgan Chase & Co (JPM.N), Bank of America Merrill Lynch (BAC.N) and Citigroup Inc (C.N), exercised their full option on an additional 71.7 million common shares worth $2.37 billion.

They also exercised an option to purchase 13 million preferred shares for $650 million.

Underwriters had 30 days from the IPO to exercise the options.

GM last week had raised $20.1 billion in an IPO of common and preferred shares in what was the biggest U.S. IPO ever. Without the preferred shares, GM's IPO would have been smaller than China's AgBank.

On November 18, their first day of trading, the shares rose 3.6 percent. They closed on Friday up 33 cents at $33.81, or 2.5 percent above the $33 IPO price.

So did they take them up because they could make an instant profit?

[getknk]

crazy profit..

are these money going to shareholders or as bonuses?