Good news for GM: first quarterly profit in three years

General Motors have announced today that the first quarter of 2010 has been the place for another achievement on behalf of the company as they returned to profitability and registered revenue of $31.5 billion and operating income of $1.2 billion.

GM Renaissance Center

GM Renaissance Center

The registered net income attributable to common stockholders was $0.9 billion which means earnings per share on a diluted basis of $1.66. The automaker made a total of $865 million during the first three months of the year.

Chris Liddell, vice chairman and chief financial officer stated that the company is pleased with this performance, in particular achieving profitability. This is most important for the company since a year ago, GM lost nearly $6 billion on revenue of only $22.4 billion, as sales plunged and the company wound up filing bankruptcy.

Not only that, this profit is the company’s first since 2007 as despite filing bankruptcy it had still been posting reports “in the red”.

According to Liddell in North America GM are adding production to keep up with strong demand for new products in their four brands and as far as emerging markets are concerned they are registering steady growth. All of this is taking place while keeping costs under control, generating positive cash flow and maintaining a strong balance sheet.

SHARE THE ARTICLE

Reply