Category Archives: financial results

Tesla Motors Delivers First Model S EVs at $100,000

Tesla Motors delivered its first electric Model S sedan over the weekend at its factory in Fremont, California. The financially challenged company – it has never earned a profit – says it will build 5,000 electric vehicles by the end of 2012, followed by 20,000 cars in 2013. Tesla claims it has already received more than 10,000 reservations worldwide for Model S. Continue reading

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Treasury to Sell Preferred Bank Stock Acquired Under TARP

The U.S. Department of the Treasury announced today that it is starting secondary public offerings of the preferred stock it holds in seven so-called CPP institutions (Capital Purchase Program under TARP). The Troubled Assets Relief Program, which injected huge amounts of taxpayer cash into U.S. banks, was sold to the American public as a way to encourage banks to lend money to free up the frozen capital markets. From October 2008 through December 2009, Treasury invested almost $205 billion in 707 financial institutions as part of the federal government’s efforts to help stabilize U.S. financial markets and the economy.

However, some the banks used part of the funds to pay huge executive bonuses, repurchase stock and pay dividends, according to the Government Accountability Office. Now GAO concerns are being raised about the health of the banks remaining in the program. Continue reading

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GM Pension Buyout Financial Engineering or Coup?

General Motors announced that it would offer lump-sum buyouts to 42,000 retired salaried employees while 76,000 others would have their pensions transferred to The Prudential Insurance Company of America, which would take over the GM white-collar plan. Continue reading

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April Japanese Automaking Surges with $13 Billion in Exports

The strong recovery is bad news for the Detroit Three since many of the vehicles will be shipped to North America, by far the largest export market for Japanese automakers. More than 157,000 vehicles were shipped to North America, with 140,000 of those sent the United States, where the new vehicle market is slowly growing once again. Continue reading

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Fiat and Mazda to Develop a Sports Car for Alfa and Mazda

The non-binding MoU states that both Fiat and Mazda will develop two “differentiated, distinctly styled, iconic and brand-specific light weight, roadsters featuring rear-wheel drive.” The Alfa Romeo and Mazda models will each be powered by specific proprietary engines unique to each brand. Continue reading

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Largest U.S. Airlines Barely Profitable in Q4

These data, combined with record levels of long-term unemployment and a moribund housing market, one wonders how anyone in the ruling class can claim the recession is over? Continue reading

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Nissan Posts Operating Profit of ¥45.8 Billion For F.Y. 2011

The Nissan results with a net of $4.32 billion was in sharp contrast to Toyota Motor Corporation’s F.Y. net profit decline to ¥283.56 billion or $3.6 billion, a -31% decrease. Nissan also out performed Honda Motor whose net profit declined slightly at ¥211.4 ($2.627 billion) for a -3.5% drop. Continue reading

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Toyota Motor 2012 Results Down 31% to $3.6 Billion Profit

Toyota Motor posted results for Fiscal Year 2012 ending 31 March that saw its net profit decline to ¥283.56 billion or $3.6 billion. A strong recovery in sales and earnings in the second half of the fiscal year was not enough to offset a poor first half, which was hurt by natural disasters in Japan and Thailand, which disrupted production. Continue reading

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Daimler Q1 Net Profit of €1,416 Million is Up 20%

Daimler said the increase came from the ongoing growth of unit sales at Mercedes-Benz Cars and Daimler Trucks. In the first quarter of 2012, the Daimler Group sold a total of 502,100 cars and commercial vehicles worldwide, up 9% from Q1 2011. Daimler expects to sell more than 2.1 million vehicles globally during 2012. Continue reading

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Bankrupt Hawker Beechcraft Pensions Only 56% Funded

Collectively, Hawker Beechcraft’s three pension plans are only 56% funded, with $769 million in assets to cover $1.4 billion in benefits. If Hawker Beechcraft ended the plans under the bankruptcy, the Pension Benefit Guaranty Corporation of the U.S. Federal government would pay $533 million of the $611 million shortfall. PBGC is the company’s largest creditor. Continue reading

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U.S. Treasury to Sell $5 Billion of AIG Stock. Taxpayers Still Owed $39 Billion from Controversial Bailout of Company

Today’s announcement is part of Treasury’s ongoing efforts to wind down the Troubled Asset Relief Program (TARP). More than 81% ($338 billion) of the $415 billion funds disbursed for TARP have already been recovered to date through repayments and other income – before including any expected proceeds from today’s announcement.

Ideologues will never admit it, but TARP is looking like an effective government intervention in the failed capital markets. Little has been done to make sure that it does not happen again in the view of critics. Continue reading

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BMW Group Posts Record Sales, Revenues, Earnings in Q1

The BMW Group recorded record sales, revenues and earning during Q1 2012, as the number of vehicles sold by the Group rose by 11.2% to 425,528 units from 382,758 during Q1 of 2011. The BMW, Mini and Rolls-Royce brands all recorded new sales records. This included BMW brand motorcycles at 24,373, +5.5%, which was also the best Q1 sales performance in the company’s history. Continue reading

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GM Makes $1 Billion in Q1. Down from $3.2 Billion in 2011

GM stock has been trading $22-$23 range, well down from the $33 level of GM’s 2010 initial public offering, to say nothing of what is happening to small investors who subsequently bid the stock – which pays no dividend – up to $39 before reality took hold. Continue reading

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PBGC, Bendix Reach Settlement, End Litigation over Pensions

Critics of the federal agency say it has been lax and ineffective in protecting pensions. Under today’s settlement, PBGC won’t require Bendix to put up collateral for the remaining $8.4 million in pension liability, provided the company remains financially strong until the end of the year. Continue reading

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Speedway Motorsports, NASCAR Track Owner, Posts Q1 Loss

The entertainment company, which owns many NASCAR tracks including Atlanta Motor Speedway, Bristol Motor Speedway, Charlotte Motor Speedway, Infineon Raceway, Kentucky Speedway, Las Vegas Motor Speedway, New Hampshire Motor Speedway and Texas Motor Speedway, is suffering from declining fan attendance and weak corporate sponsorships. Continue reading

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