GM post $1 billion Q1 profit, dragged down by Europe

[jpak]

Source: USA Today

General Motors reported a first-quarter profit of $1 billion on strong results in North America and continuing losses in Europe.

The results were 60 cents per share (about a fourth of which are still owned by taxpayers). The profit beat Wall Street analysts expectations by eight cents per share.

GM was strong in North America with an operating profit of $1.7 billion, but the skunk at the party was GM Europe, which lost $256 million and also was responsible for a special charge of nearly $600 million for a writedown of goodwill. The unit's annual loss last year was its 12th consecutive year of losses.

The restructuring of the Opel operation has been gaining little traction and now is battling the headwind of the recession in most of Europe.

Read more: http://content.usatoday.com/communities/driveon/post/2012/05/gm-1-billion-profit-2012-first-quarter-europe-loss/1#.T6J637PDf8A

[Lars77]

1. Goddamn European socialists! :)

[Atman]

2. DAMN THAT OBAMA!

He should have take Rmoney's advice.

.

[Botany]

3. hahahahahahahahahaha

[Psephos]

4. GM/Chrysler DID go bankrupt.

Then were brought out of bankruptcy through cancellation of debt to bondholders, removal of equity from shareholders, forgiveness of back taxes, and infusion of atens of billions in new money from the Treasury.

Additionally, GM/C were absolved of paying taxes currently, and into the future for a considerable time.

How could they not show a profit after all that?

[Zen Democrat]

5. GM & Chrysler couldn't have been saved otherwise

Without the aforementioned, the bondholders would have been holding nothing anyway. Those car companies were done. They would not have gone into bankruptcy, they would have gone into liquidation. It's not like there were private investors ready to come in and save them in the winter of 2009 -- the credit markets were FROZEN. It's not about squeezing out the bondholders, etc., it's about saving an entire industry.

Also, it saved millions of jobs. Not just from the automakers, but from the extended auto supply industry. And those employees are paying taxes, and NOT receiving unemployment.

Where did you get your information, Fox News?

[former9thward]

7. That is not true.

Where are you getting your information -- GM corporate headquarters? They would have gone into bankruptcy and they would have been reorganized. There is zero evidence they would have liquidated. GM still owes the U.S. about 40 billion in bailout money and they have no intention of paying it back. They also are not paying any taxes on their current profit. But you seem to be OK with that.

[Psephos]

8. If you have different facts, let's hear them.

The Fox News slur does not help the discussion.

I'm here to exchange views, not insults.

[madrchsod]

6. fiat bought Chrysler and now chrysler is keeping fiat out of bankruptcy.