GM Finally To Release Financial Results
By Michelle Krebs March 13, 2007When General Motors finally releases its long-delayed financial results for the fourth quarter and all of 2006 tomorrow, the news is expected to be encouraging. The automaker is expected to report its first quarterly profit in two years.
GM confirmed in January that it would post record revenue in its auto business and a profit in the fourth quarter of 2006 for its first profitable quarter since the fourth quarter of 2004 when it made $630 million. Though the 2006 profit isnât predicted to be enormous, it will be another sign that GMâs turnaround plan is working.
Bloomberg reports a dozen analysts polled by Thomson Financial expect GM to earn $1.19 per share, excluding restructuring costs and other special items for the fourth quarter. For the full year, Bloomberg reports that 10 of the analysts expect earnings of $4.39 per share, again excluding billions of dollars in restructuring costs that will likely leave it with a net loss. GM lost $3 billion through the first nine months of last year and $10.6 billion in 2005.
Some analysts say GMâs quarterly profits may continue for a time as it benefits from huge cost cuts made during the past two years, including hourly worker buyouts and health care concessions from the United Auto Workers union. GM began restructuring last year by giving buyouts and early retirements to 34,000 hourly workers and cutting $9 billion costs annually. In addition, GMâs new full-size pickups, which provide large profits to the automaker, are doing well.
GM was originally set to release its 2006 results January but announced a delay to correct mistakes made in financial statements from five years ago.
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