[FenwickHockey65]

GM Announces First Full-Year Results as New Company
Link to Press Release

February 24, 2011

DETROIT – General Motors Company (NYSE: GM) today announced its calendar year 2010 results marked by $4.7 billion of net income attributable to common stockholders for its first full year of operations.

Revenue for the calendar year was $135.6 billion. Automotive cash flow from operating activities was $6.6 billion and automotive free cash flow was $2.4 billion, both reflecting the impact of a $4.0 billion voluntary cash contribution to the company’s U.S. pension plans.

“Last year was one of foundation building,” said Dan Akerson, chairman and chief executive officer. “Particularly pleasing was that we demonstrated GM’s ability to achieve sustainable profitability near the bottom of the U.S. industry cycle, with four consecutive profitable quarters.”

Fourth quarter net income attributable to common stockholders of $0.5 billion includes net charges of $0.4 billion, or a $0.21 reduction to fully diluted earnings per share, as a result of the previously disclosed $0.7 billion loss on the purchase of U.S. Treasury (UST) preferred shares, partially offset by the impact of EBIT adjustments. The company had approximately $0.3 billion in favorable EBIT adjustments including the previously disclosed $0.2 billion gain associated with the repayment of the VEBA Note, and $0.1 billion of cumulative gains on the sale of Nexteer and the purchase of the Strasbourg, France facility.

GM North America (GMNA) had EBIT in the fourth quarter 2010 of $0.8 billion, up from a loss of $3.4 billion in the fourth quarter 2009. GM Europe (GME) had a loss before interest and taxes of $0.6 billion, an improvement from a loss of $0.8 billion in the same quarter a year ago. GM International Operations (GMIO) had EBIT of $0.3 billion, down from $0.4 billion in fourth quarter 2009. GM South America (GMSA) had EBIT of $0.2 billion for the fourth quarter, compared with $0.3 billion in the same quarter a year ago. GM began reporting GMSA results as an operating segment in the fourth quarter, and has revised the segment reporting for prior periods.

Automotive net cash flow from operating activities for the fourth quarter was $(1.7) billion, which reflects a $4.0 billion voluntary cash contribution to the U.S. pension plans. After deducting $1.1 billion of capital expenditures, automotive free cash flow was $(2.8) billion.

As a result of GM’s 2010 financial performance, the company will pay profit sharing to approximately 45,000 eligible GM U.S. hourly employees, and approximately 3,000 eligible GM Components Holdings (GMCH) employees. The average payout per employee will be approximately $4,300 for GM employees and $3,200 for GMCH employees.

In addition, GM announced today that after assessing remediation actions that it put in place to address the company’s material weakness regarding the financial reporting process, the management team and Audit Committee of the Board of Directors concluded that the material weakness no longer exists as of December 31, 2010.

“Our focus for 2011 is to build on our progress and continue to generate momentum in the marketplace. We expect our first quarter will be a strong start,” said Chris Liddell, vice chairman and chief financial officer.

[bossbunny]

The Camaro did it! ahahaha.

[garagelogic]

Should this come as a surprise to anyone? It's certainly nice to see, but I'm not sure if I am pleased about the path that was taken to get the result.

[BackinBlackSS/RS]

Originally Posted by garagelogic

Should this come as a surprise to anyone? It's certainly nice to see, but I'm not sure if I am pleased about the path that was taken to get the result.

Well, it was a path that had to be taken. It's not like it was a local mom and pops store going out of business. GM going out would have had a devastating effect across the world. It simply could not be allowed to happen. I think of it as helping someone out. You give someone a roof and a chance, then it's up to them. GM IMO has made the most out of their chance provided to them. GM!!

[DGthe3]

Good to see. Continual profits and award winning cars should raise the stock price for when the next batch of shares gets sold off.

Originally Posted by garagelogic

Should this come as a surprise to anyone? It's certainly nice to see, but I'm not sure if I am pleased about the path that was taken to get the result.

I don't like it either, but it doesn't take a whole lot of thinking to see that it was better than the alternative. In my opinion, people tend get a bit too focused on the process, rather than the results achieved.

[Brokinarrow]

Originally Posted by BackinBlackSS/RS

Well, it was a path that had to be taken. It's not like it was a local mom and pops store going out of business. GM going out would have had a devastating effect across the world. It simply could not be allowed to happen. I think of it as helping someone out. You give someone a roof and a chance, then it's up to them. GM IMO has made the most out of their chance provided to them. GM!!

If GM had collapsed, so too would have Ford and Chrysler, then we wouldn't have ANY domestic auto-companies. Ford admitted this during those congressional hearings, its due to the shared parts suppliers that all 3 use. If one of the 3 falls, the parts vendors no longer make enough money and close shop, then the other 2 can't get the parts the need and *poof*

[Hylton]

Originally Posted by Brokinarrow

If GM had collapsed, so too would have Ford and Chrysler, then we wouldn't have ANY domestic auto-companies. Ford admitted this during those congressional hearings, its due to the shared parts suppliers that all 3 use. If one of the 3 falls, the parts vendors no longer make enough money and close shop, then the other 2 can't get the parts the need and *poof*

It would never have come to that. Don't think for a second that another car company would not have jumped at the opportunity to buy the Chevrolet assets.

[garagelogic]

When presented with a vaccuum, something always rushes in to fill it. I still don't buy the doom and gloom predictions that were given, but it's a moot point now.

[ColdCamaroSS]

A person can either choose to believe the bailouts were necessary to keep our country afloat or let the markets right themselves without government intervention and see what happens. This clip makes a lot of sense to me and personally, I don't think it was scare tatics on behalf of Uncle Sugar. I think they were scared shitless at the alternative to helping out.

[Brokinarrow]

Originally Posted by Hylton

It would never have come to that. Don't think for a second that another car company would not have jumped at the opportunity to buy the Chevrolet assets.

Ok, but who would have bought GM's assets? Not Ford - they just got done mortgaging everything they own so that they could have a nice cash cushion, and the banks still weren't giving out loans when GM was in trouble. Definitely not Chrysler, as they were heading for bankruptcy themselves. That pretty much leaves foreign companies, not a prospect that I would want to consider...

[Sax1031]

great news

[UCI CamaroFan]

They missed earnings estimates (by a lot) and the stock got hammered for it.

GM stock price hit a new low today, below the IPO price.

Originally Posted by Hylton

It would never have come to that. Don't think for a second that another car company would not have jumped at the opportunity to buy the Chevrolet assets.

Maybe bits and pieces, but probably not the whole thing. Toyota only wanted Corvette

[1bad65]

Originally Posted by Brokinarrow

Ok, but who would have bought GM's assets? Not Ford -

Considering they would have then had about 100% of the domestics market, I'm guessing they would had the cash to buy the assests of a bankrupted company.

[1bad65]

Originally Posted by UCI CamaroFan

They missed earnings estimates (by a lot) and the stock got hammered for it.

GM stock price hit a new low today, below the IPO price.

Someone on this very site said that might well happen before the IPO happened. Who was that guy who didn't lose his money....