Category Archives: financial results

Bankrupt American Suzuki can sell off Cars with Ally Credit

American Suzuki Motor Corporation today said that it has received Bankruptcy Court approval of an agreement with Ally Financial to continue providing dealer and buyer financing while it sells off its remaining inventory of small cars. The U.S. Treasury, courtesy of taxpayers, currently holds about 74% of Ally common equity after a bailout, and $5.9 billion in mandatory convertible preferred securities, which have a dividend rate of 9%. Continue reading

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GM Ups its Revolving Credit Agreements to $11 Billion

General Motors Company has doubled it revolving credit agreements to $11 billion, up from an existing deal that provided $5 billion dollars, which was negotiated post bankruptcy in October of 2010. The new credit pact contains a $5.5 billion three-year line and a $5.5 billion five-year line that the U.S.’s largest automaker can draw from.

U.S. taxpayers still hold 32% of GM and its common stock pays no dividend, but the agreement helps strengthen the balance sheet ultimately leading the way for a stock sale. Continue reading

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American Suzuki Bankrupt. North American Sales to Cease

American Suzuki Motor Corporation is seeking Chapter 11 bankruptcy protection for its U.S. auto business with the intention of ceasing the sale of vehicles in the U.S. In October of 2012, Suzuki sold just 2,039 of small cars and light trucks or 0.018 % of the U.S. retail auto market. Continue reading

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Toyota Makes $3.2 Billion Because of Sales Increases, Cost Cutting

Toyota Motor Corporation in Japan this morning reported Q2 Japanese fiscal year revenues of ¥5.4 trillion ($68.4 billion *), up 18.2% and operating income of ¥340 billion ($4.3 billion) vs. ¥75.4 million last year. Net income was up 220% to ¥257.9 billion yen ($3.2 billion). As a result, Toyota increased the dividend on its stock to ¥30 per share, Continue reading

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General Motors Posts Q3 Profit of $1.5 Billion, off -$200 Million. Ideologues Out in Full Force for Halloween and the Election

General Motors Co. (NYSE: GM) today announced third quarter net income of $1.5 billion, a drop of -$200 million from the same period in the prior year. This works out to $0.89 per share including special items, which reduced net income by $100 million and cut earnings per share by $0.04. In the third quarter a year ago, GM’s net income was $1.7 billion or $1.03 per share. The results represent a turnaround especially in view of Q1 of 2009 when GM lost almost -$10 per share.

In spite of wild claims – critics say deliberately false – from the repudiated Republican right about the auto bailout, GM is not going bankrupt. GM’s debt-to-equity ratio is only 25% of the overall auto industry average, and it now has more than $37 billion in liquidity. GM in the context of the current travails of the global auto industry is performing reasonably well. Continue reading

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Fiat Group Doubles Q3 Profit to €286 Million. Revenue €951 Million

The Fiat Group in Turin today recorded a Q3 profit of €286 million or $371 million (2011 €112 m) as Chrysler earnings in North America offset losses in Europe. Without Chrysler, Fiat would have lost -€281 million in the quarter. Continue reading

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Ford Motor Posts $1.6 Billion Profit in Q3. Europe Loses $468 Million

Ford Motor Company said today that Q3 profits were $1.6 billion based on revenues of $32.1 billion. Q3 pre-tax profit was $2.2 billion, or 40 cents per share, an increase of $200 million from Q3 2011. Ford Credit reported a pre-tax profit of $393 million, a decrease of $188 million from third quarter 2011. The positive results, as they have for years now, came almost entirely from North America, which achieved its highest quarterly profit, pre-tax $2.3 billion and operating margin 12%, since 2000 when the Ford Motor started reporting the region as a separate business unit. Continue reading

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Chrysler Group Posts Q3 Profit of $381 Million

Chrysler Group today reported a Q3 profit of $381 million, an increase of an increase of 80% from Q3 a year ago, based on revenue of $15.5 billion, up 18% from $13.1 billion. For the first nine months of the year, Chrysler Group (1) posted net revenue of $48.6 billion, up 22% from the same period a year ago, as its recovery from bankruptcy continues. Cash at quarter-end was $11.9 billion compared with $9.5 billion a year ago and $12.1 billion on 30 June 2012. Cash flow for the quarter was a -$65 million compared with -$699 million a year ago. For the first nine months of 2012, Free Cash Flow was $2.5 billion. Continue reading

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Honda Motor Makes ¥82 Billion in Japanese Q2, Cuts Forecast 20%

Honda Motor Company’s net profit rose 36% to ¥82 billion or ~$1 billion in the Japanese fiscal year Q2 that ended 30 September the company said in Tokyo. An average ¥79:$1 was attained during the quarter. Honda sold 3.9 million motorcycles, 1 million automobiles, and 1.3 million power products during Q2. Promotional and startup costs for the new Accord, which just went on sale in the U.S., and a government prodded Chinese boycott of Japanese cars because of a territorial dispute over some islands, cut the results. Continue reading

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Daimler Posts Q3 Profit of €1.2 Million, a €155 Million Drop

The Eurozone crisis expanded into Germany in Q3 as Daimler AG (DAI) posted Group earnings of €1,921 million, off from Q3 in 2011at €1,968 million. Net profits for the period were €1,205 million (Q3 2011: €1,360 million), leading to declining earnings per share of €1.03 (Q3 2011: €1.21). Daimler sold 528,600 cars and commercial vehicles worldwide in Q3, surpassing the prior-year total by 1%. Revenue of €28.6 billion was 8% above the prior-year level. Adjusted for changes in currency exchange rates, the increase amounted to only 3%. As a result, of the weakened results and prospects for the future, Daimler said that it will not match 2011’s earnings. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars tried to be optimistic in a statement: “Considering the significantly more difficult market conditions, Daimler achieved good earnings in the third quarter.” The earnings release was sent out ahead of schedule because of the accidental issuing of an e-mail. Continue reading

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French Government Backs €7B in PSA Peugeot Citroën Debt

The French State will provide up to €7 billion in refinancing guarantees for new bond issues during the 2013-2015 period. It is the latest example of a taxpayer bailout of an ailing auto company facing increasingly limited credit options in the private capital markets, if they now exist at all. The subsidy is subject to EU approval by the Competition Commission in Brussels, and is vehemently opposed by the German state of Lower Saxony, the second largest owner of VW, the largest automaker in Europe by far. Continue reading

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Ally Financial Sells Its Canadian Auto Financing Business

Notably absent as buyers were Ford Credit and General Motors. Ally has other international operations in Europe and Latin America on the block, and GM has submitted a bid for the business. Ally expects to announce the buyer after the U.S. Presidential election next month. Continue reading

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Stefan Jacoby Out at Volvo Car. Håkan Samuelsson new CEO

The Board of Directors of Volvo Car Group has appointed Håkan Samuelsson as its new President & CEO effective immediately, the Chinese owned company said today. Stefan Jacoby will leave Volvo Car Group and the board. Continue reading

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Ally Financial to Sell Mexican Insurance Business

Ally Financial today announced that it has reached an agreement to sell its Mexican insurance business, ABA Seguros, to the ACE Group, one of the world’s largest multi-line property and casualty insurers. ABA Seguros is the fourth largest insurer in the Mexican auto insurance market, and the transaction has a purchase price of $865 million in cash.

The latest move to fix the balance sheet of the former finance arm of General Motors comes a week after the announcement that Ally will make a payment of approximately $134 million, or $1.125 per share, to the U.S. Treasury next month. U.S. taxpayers have invested $17.2 billion in keeping Ally in business as a bank holding company after improvident home mortgages made it bankrupt under the Bush market crash. Continue reading

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A123 Files Bankruptcy. Johnson Controls to Purchase its Auto Assets

A123 Systems (Nasdaq: AONE), a developer and manufacturer of nanophosphate lithium iron batteries and systems, today filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. A123 ran out cash as demand for EVs and its batteries remains weak to almost non-existent. As part of a proposed reorganization Johnson Controls (NYSE: JCI) will supply $72.5 million in “debtor in possession” financing to support A123’s continued operations as JCI purchases parts of A123. Continue reading

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