GM posts Q1 profit, on the road for an IPO

The top U.S. automaker, General Motors Inc., today published earnings for the first quarter of 2010.

The company said revenue in the quarter was $31.48-billion, up materially from $22.4-billion (an increase of 40.54-percent) in the same period last year.

GM had an operating profit of $1.2-billion in the period, and earned $865-million in net earnings in the period. Net earnings compare to a $5.98-billion loss YoY.

The current increase in net earnings is attributable to many factors, primarily the increase in demand for GM vehicles, and lower fixed costs as production rose. Additionally, the company said it transferred retiree health expenses to an independent less costly trust.


The company declined to give any outlook on possible future expected earnings in the remaining quarters of this fiscal year, but said it is hopeful for a full year profit.

The company’s new chief financial officer, Chris Liddell, who took the top finance job last January, said today that, “the next step is to achieve sustainable profitability,”

The profit in the first quarter of 2010 puts the company on the right path towards an initial public offering (IPO), something GM confirmed it would like to do likely this year.

GM has taken unprecedented steps in the last year to cut costs largely by slowing down production, releasing employees, and by selling key assets, including the iconic Hummer brand to the Chinese automaker Sichuan Tengzhong, and the Saturn brand to Penske for $200-million.

The company also has plans to begin to offer more direct financing to consumers, similar to its former financing arm GMAC. GM sold its 51-percent controlling GMAC stake in 2006.

GMAC most recently posted its first quarterly profit since late 2008, reporting a $162-million net profit in the first quarter of 2010.

GM says offering more direct financing could be more appealing for investors when the company issues equity via an expected IPO this year.

tag TAGS: , ,
Short URL:
b2p Ensure that you follow us on Twitter and Like us on Facebook
Peggy holds a Bachelor Arts degree with honors in Economics from York University in Toronto, Canada. She is a Certified Management Accountant (CMA). She has also passed Level I of the Chartered Financial Analyst (CFA) Program. She is also a realtor. Write to [email protected]
We are perfectly committed to the highest ethical and professional codes of conduct and standards in the industry on a firm wide basis. Learn more about us, our contributors, and our governance
We encourage you to comment. Comments are moderated. Comments that are abusive, off-topic, have marginal substance, or include promotional content will be removed. We cannot facilitate requests to edit or remove comments, or explain moderation decisions

Business 2.0 Press publishes exclusive business tech news and analysis covering start-ups to large-caps from Bay & Wall streets since 2008 from a group of highly knowledgeable industry professionals that abide by the toughest industry codes of conduct and professional standards lightMore

lightAdd value by subscribing (RSS)

logo has the most stock ratios for public companies. Get the most comprehensive micro insight on public firms available on the web, all for free.
Stock Fractionsgo


Colon cancer is one of the leading causes of death. Irrespective of family history, everyone is exposed to the risk. About 90% of colon cancer cases begin from non-cancerous tumors, polyps, which could form in the large bowel. Screening with a colonoscopy will painlessly remove any polyps hence almost entirely reducing your risk of developing the horrible disease. The good news is that about 90% of colon cancer cases are preventable through a simple (yes, simple) colonoscopy.
Learn moreatom
Public service message from Business 2.0 Press