General Motors Reports $891 Million Profit

[Penndems]

By Sholnn Freeman
Washington Post Staff Writer
Tuesday, July 31, 2007; 12:14 PM

General Motors today posted second-quarter profit of $891 million, reversing course from a year ago when heavy North American restructuring costs resulted in billions of dollars in red ink.

The morning's report marked the American auto giant's third straight quarterly profit and beat estimates by financial analysts. GM's shares climbed 4.4 percent to $34.04 in New York Stock Exchange trading, leading a broad advance in U.S. stocks.

GM's performance was boosted by the profitability of its international divisions. GM's core North American division -- although financially healthier than a year ago -- lost $39 million from continuing operations in the second quarter.

Rick Wagoner, GM's chairman and chief executive, cautioned that in the outlook for the U.S. economy and the domestic auto market remained challenging. Wagoner, in a statement, said the North American division's current earnings "clearly demonstrate that we've got work to do."

Link:
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/31/AR2007073100447.html?hpid=moreheadlines

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First Ford, now GM. Outstanding! :thumbsup:

[bluestateguy]

1. Good, now start rehiring the workers you laid off

nt

[Sadie5]

4. I wonder what's going on at GM

They are still selling off assets because they say they are so cash strapped. The word is that they will still close factories as they will make the bulk of their parts in China. Too it was said that GM was 51 bil in the hole last month, one of the reasons given for the selloffs. Are they keeping two sets of book, or what?

[Penndems]

6. Ford, Chrysler and General Motors are all in negotiations with the UAW

If both Ford and GM are posting profits, the union could use that as a bargaining chip: "Those vehicles that made a killing for this company were built with union labor".

[bruce_maturin]

2. I think GM would claim that they're now making a profit because of the layoffs

[LSK]

3. so does this mean the outsourcing is complete?

:shrug:

[Penndems]

7. Believe it or now, the Big Three want to cut even MORE of their workforce

That's gonna be a tough argument to make if their profits are moving these companies into the black.

[madrchsod]

5. so did ford

selling and laying off makes those profits go up....we`ll see how this all plays out in the coming months.