earnings

GM share price up on better-than-expected earnings report

Oct 31, 2012
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GM shares were up Wednesday on the back of a stronger-than-expected third-quarter earnings report.

The automaker reported a net income of $1.48 billion, down just 14.5 percent from last year despite major losses in Europe.

As a result, GM stock had increased by 9.66 percent to $25.53 a share by 2:20 p.m.

Melissa Burden with the Detroit News has more:

Chrysler's third-quarter profits up 80 percent

Oct 29, 2012

A third-quarter earnings report from Chrysler shows that profits are up 80 percent from last year.

The automaker earned $381 million over the past quarter, up from $212 million for the same period last year.

Brent Snavely from the Detroit Free Press has more:

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Ford Motor Company announced its second-quarter earnings this morning. And, although profits dropped slightly, the automaker did beat analysts' expectations. The Associated Press reports:

The company earned $2.4 billion, or 59 cents per share, down 8 percent from $2.6 billion, or 61 cents per share, in the second quarter of 2010. It was Ford's ninth straight quarterly profit. Worldwide sales rose, but the company spent more on materials and product development.

Revenue rose 13 percent to $35.5 billion. Analysts polled by FactSet had forecast revenue of $32.15 billion. Without one-time items, including $110 million for employee reductions, Ford would have earned $2.9 billion, or 65 cents per share. That beat analysts' forecast of 60 cents per share. Ford paid off $2.6 billion in debt during the quarter.

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Ford Motor Company announced this morning that it had its best annual performance in more than a decade. Ford earned $6.6 billion last year as sales jumped by 20 percent. Revenues rose 3 percent to almost $121 billion.


UPDATED:  11:40 a.m.  Ford CEO Alan Mulally says salaried and hourly workers will share in the good news in the form of profit-sharing checks.  Hourly workers will get average payments of $5,000.



"To be able to share the wonderful work, the wonderful success of this, with everybody's that's worked on quality, on fuel efficiency, on safety -- it's a tremendous day for all of us," says Mulally.


Ford made $7.2 billion dollars in 1999, but it sold nearly twice the number of vehicles to get that result compared to 2010.  Mulally says the company is benefiting from what he calls a "home improvement loan" of $23-billion, taken out in 2006, that financed the company's effort to slash operating costs and improve quality.



"You think about back then (1999) and now, this is a complete transformation of Ford," he says.


Mulally says the biggest challenge this year is not specifically a Ford problem.  He says the U.S. needs to exercise sound fiscal policy so the economy continues to recover.


Ford Motor Company is forecasting higher profits in 2011 than 2010. 


The company's stock dropped Friday morning, however, as investors reacted to Ford's fourth quarter results.  The company's profits were lower than expected because of costs associated with restructuring some debt.


Mulally says the company has made swift progress in paying off that "home improvement loan."  Debt was reduced 43% in 2010.


(c) GM Logo/Photo Courtesy of General Motors

General Motors announced this morning that it made $2 billion in the third quarter.  The Associated Press reports:

The profit was fueled by GM's international operations and strong revenue from newly introduced car and crossover models in North America.

The automaker's actual revenue rose 36% to a little more than $34 billion.  This was the third-straight quarter in which GM was profitable.

Closeup of Chrysler Logo
Photo by Diego HC/Creative Commons

Chrysler says it narrowed its losses in the 3rd quarter of this year. The automaker reported a net loss of $84 million from July through September. That’s less than half of its $172 million loss in the second quarter. The automaker says this was the third quarter in a row of better-than-expected financial results.