The good news just doesn't seem to want to stop for the
American auto makers. General Motors (NYSE:
) reported profits that beat analyst's estimates thanks to very
strong global sales.
The company, which had a fantastic 2011, said that
first-quarter profits, while slipping slightly to 93 cents from
95 cents the previous year, crushed the estimates of 85 cents per
share. The company has reason to celebrate then, despite net
income falling to $1.3 billion from $3.37 billion, or $1.77 per
share, this time last year.
CFO Dan Ammann said in a statement that, "We are aggressively
eliminating complexity to reduce our costs."
The company might well be reducing complexity, but they aren't
reducing vehicles, as it prepares to launch, "more than 20 major
vehicle launches around the world in 2012 to drive revenue this
year and farther into the future."
The trend had already been set by Ford (NYSE:
), which had reported a fall of 45% to $1.4 billion. With losses
in Europe, slowing growth in China and increasing competition in
South America have a big impact, both GM and Ford are relying on
domestic sales more and more.
But the news is still good. Revenue went up to $37.8 billion
from $36.2 billion, which killed an average analyst estimate of
$37.5 billion. Not only that, but this quarterly profit is the
company's ninth in succession. Not bad for a business that needed
a government bailout just a few short years ago.
Meanwhile, GM's adjusted operating profit moved up to $1.6
billion from $1.25 billion the previous year. The downside is
that international revenue fell significantly to $529 million
from $586 million. That, despite global vehicle sales rising 4%
to 2.3 million units from 2.22 million in 2011.
And the numbers keep rolling in. 1Q domestic sales rose 2.7%
to $608,320, thanks in no small part to the Chevrolet Cruze and
Adjusted operating loss in Europe totaled $256 million, after
the company made a $5 million profit last year.
CEO Dan Akerson said last week that, "We're in dialogue with
all of the constituencies and it's multinational, given our
footprint in Europe. We hope within the next couple of months to
be able to speak more specifically about the details of a plan
That's a lot of numbers thrown out, but the key detail is that
GM is still doing better than most analysts are predicting, and
there is every chance that 2012 will be another big year for the
(c) 2012 Benzinga.com. All rights reserved. This material
may not be published in its entirety or redistributed without
the approval of Benzinga.