Biker16 Posted October 25, 2016 Share Posted October 25, 2016 http://www.forbes.com/sites/joannmuller/2016/10/25/gm-posts-another-record-quarter-on-strong-demand-for-trucks-utility-vehicles/#bc84bdf61160 Joann Muller , FORBES STAFF cq5dam.web.1280.1280 (1) Strong sales of SUVs like the Chevy Tahoe drove GM’s record third-quarter profits. (GM Photo) General Motors doubled its net income to a record $2.8 billion for the third quarter, helped by high margins on light truck sales in the U.S. and continued solid results in China, its two largest markets. GM said adjusted earnings per share were $1.72, handily beating analysts’ estimates of $1.44 per share, as revenue soared to $42.8 billion, the highest ever. “ Our record third quarter, led by strong performance in the U.S. and China, reflects our determination to deliver on our commitments. We will continue executing our plan to deliver earnings that enhance shareholder returns,” Chief Executive Mary Barra said in a statement. Once again, GM’s financial results were driven by its North American business, where U.S. consumers favor high-margin sport utility vehicles and pickup trucks. North American earnings before interest and taxes rose about $200 million to a record $3.5 billion. A key reason for GM’s profit improvement in the U.S. is its decision to focus on sales to individual retail customers and to cut back on lower-margin sales to fleet customers like rental car a Quote Link to comment Share on other sites More sharing options...
twintornados Posted October 25, 2016 Share Posted October 25, 2016 I am glad GM is doing well and following the "Ford Plan" .... Quote Link to comment Share on other sites More sharing options...
Biker16 Posted October 25, 2016 Author Share Posted October 25, 2016 I am glad GM is doing well and following the "Ford Plan" .... Everything except Ford's Launch and Leave program. 1 Quote Link to comment Share on other sites More sharing options...
BORG Posted October 25, 2016 Share Posted October 25, 2016 Ford and GM don't really resemble each other in business or product strategies anymore, that use to be the case. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted October 25, 2016 Share Posted October 25, 2016 Everything except Ford's Launch and Leave program. Don't forget lots and lots of loans to submarginal buyers--that's not part of the Ford plan either. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted October 25, 2016 Share Posted October 25, 2016 Biker, I could put what you contribute to this forum in a thimble and still have room for my finger. 1 Quote Link to comment Share on other sites More sharing options...
twintornados Posted October 25, 2016 Share Posted October 25, 2016 Everything except Ford's Launch and Leave program. . Dude....you are too easy to bait....lololol Quote Link to comment Share on other sites More sharing options...
Anbevo Posted October 25, 2016 Share Posted October 25, 2016 Record profits (almost 20% above estimates, in fact) and a 4% drop in their stock price! Something's not jiving with Wall Street!! Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted October 25, 2016 Share Posted October 25, 2016 Record profits (almost 20% above estimates, in fact) and a 4% drop in their stock price! Something's not jiving with Wall Street!! "Buy the rumor, sell the news" 2 Quote Link to comment Share on other sites More sharing options...
Anbevo Posted October 25, 2016 Share Posted October 25, 2016 Yeah, Wall Street is catching on to their smoke and mirrors. GM is not exactly known for honesty and transparency. Quote Link to comment Share on other sites More sharing options...
akirby Posted October 25, 2016 Share Posted October 25, 2016 Margins were also down. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted October 25, 2016 Share Posted October 25, 2016 (edited) The grasshopper is laughing at the ant.... It's another good result by GM but it's underpinned by lots of truck and larger Utility sales, those retail sales GM brags about were increased by signing up as many people as possible, as in increased sub-marginal buyers. I'm expecting that GM will have another good result in Q4 while Ford's Q3 and Q4 results will be down, the up side to that will be that I expect GM to be down significantly in 2017 Q1 and Ford's Q1 equalling its impressive result this year....shoots and ladders. Edited October 25, 2016 by jpd80 Quote Link to comment Share on other sites More sharing options...
rperez817 Posted October 26, 2016 Share Posted October 26, 2016 Everything except Ford's Launch and Leave program. GM has also abandoned the Ford Fleet Dumping program. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted October 26, 2016 Share Posted October 26, 2016 (edited) Of course not, they just used superseded models to sell to fleet customers and when that didn't work they took the kudos from announcing a reduction in daily rental sales... We haven't seen new GM in anything but an up market, let's see how it does in more difficult times.. Edited October 26, 2016 by jpd80 Quote Link to comment Share on other sites More sharing options...
Anbevo Posted October 26, 2016 Share Posted October 26, 2016 Yeah, I agree jpd80, well said. I'm not convinced GM's financial success is sustainable long term. They've got some really good products out there now, and, it appears, a good management team, but let's see how they do when times get tough and they're left to their own devices (and have to spend their own money) to figure things out. They've got enough money now thanks to government handouts, but they've got several things working against them long-term: Too many brands, too much structure, can't make money in Europe, and no humility. Pride comes before the fall..... Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted October 26, 2016 Share Posted October 26, 2016 GM has also abandoned the Ford Fleet Dumping program. No, they just channel stuffed into a peaking market. They wholesaled 92,000 more units vs. Q3 2015. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted October 26, 2016 Share Posted October 26, 2016 Go to a site like cars.com n you'll quickly see that GM's national dealer stock is very close to it declared inventory levels of particular models. Do the same with Ford and it's about 60% of inventory. Clearly, GM books revenue from stock once it's assigned to a dealer, Ford tends to book it when the vehicles are being shipped. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted October 26, 2016 Share Posted October 26, 2016 Go to a site like cars.com n you'll quickly see that GM's national dealer stock is very close to it declared inventory levels of particular models. Do the same with Ford and it's about 60% of inventory. Clearly, GM books revenue from stock once it's assigned to a dealer, Ford tends to book it when the vehicles are being shipped. Both companies book revenue as soon as a vehicle rolls out of the factory. The difference you're seeing is probably in data distribution, not revenue recognition. And it's worth pointing out that GM's Y-O-Y profit increase was driven by NA, that the profit increase in NA was driven in large part by additional volume (see their earnings deck), and that additional volume was pumped into a market that Ford, at least, considers to be either at or past its peak. That's why you're going to see worse results from Ford: Because they are not going to be showing over 90,000 more units built year-over-year. They're going to be showing--if anything--fewer units built. And, IMO, with very good reason. The market is going to slow down. 2 Quote Link to comment Share on other sites More sharing options...
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