GM To Report $5.3 Billion 2010 Profit This Week
This week is a very special one for General Motors, as they will report their first annual profit in more than seven years. So far, GM has been tight lipped about their 2010 earnings, but most analysts estimate around a $5.3 billion net profit.
This substantial profit is truly remarkable, as it was two years ago that General Motors declared bankruptcy and was taken over by the United States government. The government still owns a decent sized chunk of the company, but GM states that it is on the way to becoming a fully public company once again.
The fourth quarter of 2010 was a very profitable year for General Motors, but the automaker stated that the launches of the Chevrolet Cruze and Chevrolet Volt held down their profits by a slight margin.
"They've done very well on the program that was put in place by the government" and new executives, Aaron Bragman, an analyst with IHS Automotive said to Automotive News. "First and foremost, this has to be run like a profitable business."
General Motors recorded a $4.2 billion combined profit in the first three quarters of 2010. GM’s fourth quarter is slated to be just as good, but there are some reservations.
Ford and Chrysler both suffered weak fourth quarters and now, many fear the same for GM. What was once thought of as conservative estimates by General Motors now appears more accurate than ever.
General Motors will announce its 2010 profits later this week and it will also give an outlook to 2011. The general has already stated that it expects North American sales to increase by around 500,000 units to 13.5 million, a bold claim.
The demand for vehicles around the world, especially in China were GM has a big market share, will continue to grow and help the automaker post larger profits. China recently overtook the United States as GM’s largest single market.
Torque News will have the full report once the announcement is made by General Motors.
[Automotive News, LA Ward]