Category Archives: financial results

Chrysler Group Reports Q3 Net Income of $212 Million

Posted on 27 October 2011 by Ken Zino

Chrysler results stand in contrast to Ford Motor, which yesterday reported third quarter 2011 net income of $1.6 billion, or 41 cents per share, a decrease of $38 million, or 2 cents per share, versus third quarter 2010 on revenue of $33.1 billion, an increase of $4.1 billion from Q3 2010. Ford Q3 2011 pre-tax operating profit was $1.9 billion, or 46 cents per share, with an operating margin of 4.8%. Chrysler remains the smallest and weakest of the Detroit Three with limited international operations. Still, Chrysler is clearly on the mend. Continue reading →

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Ford Q3 Income, Profits Down as Volume Increases. No Dividend Yet, But Sooner Rather than Later Promised

Posted on 26 October 2011 by Ken Zino

Ford continues to struggle globally by posting losses in moribund European economies, and – surprisingly – the growth markets of Asia Pacific and Africa. North America, where Japanese competitors have been out of the market since the March earthquake and tsunami disrupted production, and South America reported pre-tax profits for the third quarter. Continue reading →

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Ford Common Stock Dividend Coming Next Year?

Posted on 20 October 2011 by Ken Zino

Ford previously maintained it would not restore the divided until it achieved an investment-grade rating, CFO Lewis Booth said, omitting that a dividend payment was forbidden under covenants for previously issued bonds that kept it out of bankruptcy during the Great Recession. Those bonds presumably have been or will be paid off. Ford still has $14 billion in debt according to its latest SEC filing. Continue reading →

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Household Income Continues to Fall Significantly as Federal Government Claims the Great Recession is Officially Over

Posted on 10 October 2011 by Ken Zino

Real median annual household income has fallen significantly more during the so called economic recovery period from June 2009 to June 2011 than during the recession lasting from December 2007 to June 2009. That’s right, not only do we a jobless recovery, but we have one where incomes are dropping. Since when are politicians in the business of making people poorer in a grim reversal of the American Dream?

The report is bad news for the auto industry, which remains in a severe slump caused in part by record high new car prices – now averaging more than $30,000 a vehicle, and projections of even higher prices to come because of new emissions and safety regulations. Continue reading →

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Volkswagen Takeover of Porsche Stalled, Legal Problems Cited

Posted on 9 September 2011 by Ken Zino

The announcement on the eve of the Frankfurt Motor Show also appeared to be an attempt by VW to protect the debut of the 911 sports car in Germany next week. The sale of the all new 911 models starts on 3 December 2011. However, the new Porsche sports cars can be ordered starting in late September. Prices in Germany are €88,038– hold your breathe, that’s $127,000, for the 911 Carrera and €102,436 – or $148,000 for the 911 Carrera S, including a punitive 19% VAT in effect in Germany. Continue reading →

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Saab Files for Bankruptcy in Sweden. State to Pay Workers

Posted on 7 September 2011 by Ken Zino

In the months ahead, the Swedish government will pay Saab’s 3,700 workers while a reorganization plan is debated. Saab suspended worker payments in July, as the company only sold fewer than 13,000 automobiles and posted a loss of -€201.5 million during the first half. The grim reality is that Saab Automobile after decades of losses, changes of ownership and financial engineering has limited financial resources and options remaining. Continue reading →

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Volvo Car Posts Profit in Q2. Predicts Volatile Second Half

Posted on 17 August 2011 by Ken Zino

Volvo Car Corporation posted today a profit of 600 million SEK (~$95 million) because of increased sales for Q2. However the Chinese owned company warned of a “volatile second half of the year. The operating improvement of 170 million Kronor … Continue reading →

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GM CEO Akerson Buys Another 10,000 Shares at $25.05

Posted on 10 August 2011 by Ken Zino

Akerson vowed this week that there was plenty of upside in GM stock given its new structure and emphasis on managing costs. On a cost cutting side, one program with great promise involves vehicle architectures. Akerson said “We need to simplify.” The company said that by 2018 it plans to cut that number to 14 from the 30 currently use.

Skeptics, and there are many, say show us the earnings per share and start paying dividends. Well, at least Akerson is putting his money where his promises are, so to speak. Continue reading →

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GM Stock Below $25 down from $39 High as Conference Opens

Posted on 9 August 2011 by Ken Zino

During the program, senior leaders reviewed GM’s progress and outline plans for further improvement. In a sense GM is playing a “beat the reaper” game – can GM increase share and sales of less profitable small cars such as the Chevrolet Sonic, which is just entering production, at a greater rate than the drop off in truck sales and larger per unit profits in North America, while growing in Eastern Europe, South America and Asia? Continue reading →

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General Motors Posts Q2 Earnings of $2.5 Billion. Most in N.A.

Posted on 4 August 2011 by Ken Zino

Virtually all of GM’s earnings – $2.2B – came from North America, a worrisome development for the most international of the Detroit 3, whose largest markets are China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy.

Earnings were helped by booking revenue from pickup trucks shipped to North American dealers. GM built 516,000 light trucks in Q2, up 14% from a year earlier. Passenger car production increased 10% to 308,000. GM dealers currently have 209,000 pickups in stock – the equivalent of a 115 days supply in an industry that considers 60 days normal. Continue reading →

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Bye Bye American Dream – One in Four Could Not Pay for a Major Auto Repair in Latest AAA Economic Survey

Posted on 3 August 2011 by Ken Zino

One in four American drivers could not pay for a car repair of $2000 if faced with one today, according to the results of a survey released today by AAA. The survey also said one in eight would be unable to pay for a repair bill of $1000 – easily reached with overly complex vehicles on the road. Continue reading →

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Toyota Posts FY Q1 Loss from Earthquake and Strong Yen

Posted on 2 August 2011 by Ken Zino

Toyota Motor Corporation (TMC) in Japan today said that operating income decreased from ¥211.6 billion to a loss of ¥108.0 billion, while income before income taxes was a loss of ¥80.5 billion yen. This was Toyota’s first quarterly loss in two years as Net income decreased from ¥190.4 billion yen to ¥1.1 billion. Operating income decreased by ¥319.6 billion yen. Continue reading →

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Honda Q1 Barely Profitable as Earthquake Devastates Results

Posted on 1 August 2011 by Ken Zino

Honda’s automobile unit sales totaled 547,000 units, a decrease of 39.2% from the same period last year due to production disruptions in all regions from the Earthquake. Continue reading →

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Volkswagen Group Posts Q2 Profit of €3.17 Billion

Posted on 28 July 2011 by Ken Zino

However, the outlook is cautiously hedged: “In view of the global economic challenges, we are well advised to maintain our cost and investment discipline and to further improve our financial strength,” said CFO Hans Dieter Pötsch. Continue reading →

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Ford Motor Q2 Profit Drops 8% to $2.4 Billion on $4.2 Billion Revenue Increase. Ford Credit, all Regions Except N.A. Decline

Posted on 26 July 2011 by Ken Zino

Ford’s second quarter net income was affected by so called “unfavorable special items” of $272 million – $177 million more than a year ago. The special items include personnel reduction actions as Ford continues to retrench. The closing of Mercury and other dealer-related actions in North America, as well as pension settlements in Belgium also negatively affected the results. Continue reading →

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