General Motors Posts 2011 Q1 Profit of $3.2 Billion. Results Almost Doubled by One Time Sales of Ally and Delphi Preferred

AutoInformed.com

GM stock is currently selling at under $32 a share, below the initial IPO price of $33 last November, bad news for U.S. and Canadian taxpayers who still hold 41% of General Motors.

General Motors Company (NYSE: GM) today announced Q1 profit of $3.2 billion, or $1.77 per fully-diluted share, marking the company’s fifth consecutive profitable quarter since it emerged from bankruptcy in 2009.  Revenue increased $4.7 billion to $36.2 billion, compared with the first quarter of 2010.

The General Motors results were not as strong as they appear at first glance because special items increased profits by $1.5 billion or $0.82 per fully-diluted share. GM stock is currently selling at under $32 a share, below the initial IPO price of $33 last November,  bad news for U.S.  and Canadian taxpayers who still hold 41% of General Motors. It’s estimated that the stock must trade at about$50 a share for taxpayers to get all of their money back.

Earnings before interest and tax (EBIT) were $3.5 billion.  EBIT adjusted to exclude special items was $2.0 billion compared with $1.7 billion in the first quarter of 2010. Virtually all of the profits came from increased sales in North America before huge fuel price rises caused a slump in profitable large truck and SUV sales, the effects of which won’t be known until Q2 results are released.

“We have a lot of work to do to leverage our scale,” said Dan Akerson, chairman and CEO during an earnings briefing for analysts that reporters were allowed to listen to without asking questions.

General Motors Company

 

Q1 2010 Q1 2011
Revenue – Billions $31.5 $36.2
Net income common stockholders $0.9 $3.2
Earnings per share (EPS) diluted $0.55 $1.77
EBIT – Billions $1.8 $3.5
Less special items $0.1 $1.5
EBIT Billions  – adjusted $1.7 $2.0
Impact of special items on EPS diluted $0.08 $0.82
Automotive net cash flow – Billion $1.9 $(0.6)*
Automotive free cash flow $1.0 $(1.9)*
* Includes $2.5 billion negative impact related to wholesale advance financing agreement termination


About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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