GM achieves third consecutive quarter of profitability

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We don’t know yet what is possible for the new GM now that it is ‘hitting on all cylinders’, but certainly making money is core to making more exciting new products.

GM achieves third consecutive quarter of profitability and positive cash flow
Net income of $2.0 billion, earnings per share of $1.20

DETROIT, Mich. – General Motors Company today announced that for the third quarter ending September 30, 2010, the company generated:

  • Revenue of $34.1 billion
  • Net income attributable to common stockholders of $2.0 billion
  • Earnings per share on a fully diluted basis and adjusted for 3-1 stock split of $1.20
  • Earnings before interest and tax (EBIT) of $2.3 billion
  • Net cash flow from operating activities of $2.6 billion
  • Free cash flow of $1.4 billion

“As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress,” said Chris Liddell, vice chairman and chief financial officer.

GM North America had EBIT in the third quarter 2010 of $2.1 billion, up from $1.6 billion in the second quarter.  GM Europe had a loss before interest and taxes of $0.6 billion, down from a loss of $0.2 billion in the second quarter.  GM International Operations posted EBIT of $0.6 billion, down from $0.7 billion in the second quarter.

Net cash flow from operating activities was $2.6 billion and after adjusting for capital expenditures of $1.2 billion, free cash flow was $1.4 billion.

GM expects to also report positive EBIT for the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, and profitable year-end results for calendar year 2010.

Cadillac Sales 15% up in Oct 2010

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Cadillac sales were up 15% (19% per sales day) over Oct 2009.  Cadillac CTS sales continued to shine above 4K units per month, along with SRX sales at almost 4,500 units per month.  Escalade sales were down slightly but strong.

Overall, the current incentives and sales packages are working for the CTS.  The SRX continues to shine.  I am excited about the upcoming 2012 XTS, to ‘renew’ the DTS/STS lines.   The addition of the 2013  ATS as an expansion to the Cadillac range should be perfect, perhaps raising sales (hopefully) to 20-25k/month.  Could we see Cadillac sales break 300K per year again during this decade?


 October
(Calendar Year-to-Date)

January – October

2010 2009 % Chg Volume %Chg per S/D
2010 2009 %Chg Volume
Selling Days (S/D) 27 28





CTS 4,242 2,921 45.2 50.6
36,758 31,932 15.1
DTS 1,731 1,896 -8.7 -5.3
15,718 14,021 12.1
Escalade 1,432 2,127 -32.7 -30.2
12,485 13,118 -4.8
Escalade ESV 951 599 58.8 64.6
6,649 5,206 27.7
Escalade EXT 243 178 36.5 41.6
1,619 2,015 -19.7
SRX 4,423 3,477 27.2 31.9
41,153 12,247 236.0
STS 364 355 2.5 6.3
3,837 5,398 -28.9
XLR 7 49 -85.7 -85.2
187 689 -72.9
Cadillac Total 13,393 11,602 15.4 19.7
118,406 84,626 39.9

From the Release:

Cadillac: Total sales of 13,393 for October were 15 percent higher than last October, with retail sales increasing 41 percent. SRX retail sales were up 56 percent, compared to a year ago, and CTS retail sales increased 70 percent. The all-new 2011 CTS Coupe had another great month, up 28 percent, compared to September. With total sales up 40 percent for the year, the brand remains the fastest-growing luxury auto brand in the industry.

Blinkers and Brakes oh my

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Taking my 2005 Cadillac CTS over to Crest Cadillac in Plano on Saturday to catch up on some needed maintenance & repairs.  My Cadillac has been perfectly reliable, but at almost 79K miles is ready for some regular maintenance items.

The front left turn signal is out (bulb); the rear brakes are squeaking so they are ready for new pads; the state inspection is overdue (see turn signal out for one possible excuse).  It could also stand an oil change but I enjoy doing that myself and already have a list for them to review.

I always enjoy visiting a Cadillac new car showroom, so hopefully I can spend some time window shopping.  Crest also has a large customer waiting room and a grill/snack bar on site, so you could almost live there if you needed to.  Usually my visits are very short, but just saying.

Had a second flat tire on my recently patched right rear, so I have a new tire and road hazard coverage for all four tires.  Not sure if there is some new construction in our neighborhood / my normal routes or I just got lucky twice in a couple of weeks.   I am very hard on tires anyway, but first a screw then a gash in the tread, so unlikely driver error.