Posts Tagged ‘earnings’

GM Improves in Europe, China

Detroit-based maker raising investor expectations.

by on May.02, 2013

General Motors' Q1 performance generated interest in the Detroit-based automaker's stock.

General Motors narrowed its losses and boosted its margins in Europe despite watching its overall net income decline in the face of a sweeping changeover at the company’s truck plant there.

Improvements in Europe and China and the anticipation of better results in North America helped to boost interest in GM shares, even as the U.S. Treasury Department reduces the government’s stake in GM. The U.S. Treasury still owns 18% of GM’s shares so any rise in the price of the shares benefits American taxpayers.

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“This was a solid quarter and we are much more of a formidable competitor now than we have been in more than a generation,” Chief Executive Dan Akerson said on a conference call. “We’re a very healthy company that’s getting stronger each quarter.”


BorgWarner Loses $7 Million in First Quarter

The respected supplier finds hope in a positive cash flow and further cost cuts.

by on Apr.30, 2009

BorgWarner DualTronic

Borg's dual clutch automatic transmissions return the fuel economy of a manual, making them an increasingly popular automaker choice.

In a sign of difficult economic times, BorgWarner Incorporated posted this morning a negative swing of -$97 million in Q1, which is viewed by analysts as a good performance these days in the depressed auto supplier sector.

The word’s largest maker of automatic transmissions, including extremely efficient dual-clutch versions that are being adapted by most automakers, lost 6 cents a share or $7 million. This compares with earnings of 75 cents a share or almost $90 million in Q1 2008, which was before the Great Recession took hold and automotive production was slashed globally.

The loss was actually worse, at -12 cents a share, since the company excluded non-recurring items, including a 15 cent a share credit it took for shutting its fabled Muncie, Indiana, transmission plant. Still, losing only $14 million is considered a victory in the current economic climate, which can be likened to requiring the management team to running–and completing–a marathon in a hurricane.

“The restructuring actions we took in 2008, while difficult, have already begun to yield positive financial results,” said Timothy Manganello, Chairman and CEO.

The company has eliminated almost one quarter of its work force since the middle of last year, in a bid to remain profitable. (more…)