GM Turns A Profit, If You Use One Eye
General Motors Corp., the world’s largest automaker, reported a second-quarter loss because of a $3.7 billion charge to eliminate 34,400 jobs. GM’s profit from operations exceeded analysts’ estimates, sending shares to a 10- month high.
The results boost Chief Executive Officer Rick Wagoner’s turnaround efforts and may ease pressure to accept a tie-up with Nissan Motor Co. and Renault SA proposed by billionaire investor Kirk Kerkorian. Revenue rose 12 percent to a record $54.4 billion.
“This does give GM a little more ammunition in any alliance talks to show that that they don’t necessarily need outside help,” said Peter Nesvold, an analyst with Bear Stearns & Co. in New York.
The net loss widened to $3.2 billion, or $5.62 a share, from $987 million, or $1.75, a year earlier, GM said in a statement today. The company earned $1.2 billion on its primary business of making and financing automobiles. Excluding one-time expenses, global auto operations had their first profit since 2004.
So… GM’s operations turned a profit. $1.2 billion. But they spent $3.7 billion on those job buyouts we told you about months ago.
How can anyone legitimately talk about a company “profit” when it’s easy to see they lost at least $2.5 billion. The article actually reports that they lost $3.2 billion.
People are actually happy about this?
Why don’t we wait and see if those “one time expenses” were really all that significant. Okay?
Technorati Tags: GM, General Motors, profit, loss, automaker, CEO, Rick Wagoner,
Sphere: Related ContentIntel Moves Toward Efficiency
What’s the best way to make your company more efficient?
Intel Corp. is cutting 1,000 management jobs as the chip maker tries to become more efficient amid stiff competition and weaker demand for personal computers.
The reduction, which will take several days to be carried out, is the latest action in a broad restructuring announced earlier this year, Intel spokesman Chuck Mulloy said Thursday. Analysts expect further job cuts as executives continue to scrutinize operations.
Cut out the management. HAHAHA Classic!
Sphere: Related Content