Toyota says record profit expected, keeps Outlook

Toyota Motor Corp. raised the operating result, the forecast for the fiscal year to 9 percent to a record 2.4 trillion yen ($23.7 billion) as the yen fell against the dollar to around 9 percent of this fiscal year, buoys profits from the export-oriented automakers.

The world's top-selling automaker, said on Tuesday that it expects now to 2.4 trillion yen in the operating profit of its previous forecast of 2.2 trillion yen and higher than the pre-Lehman crisis record turnover of 2.27 trillion yen from six years ago to the top.

The revision was almost in line with the 2.44 trillion yen by 23 analysts estimated.

Written 600,5 billion yen in operating profit, above the average estimate of 575,9 billion yen for the October-December third quarter Toyota and almost five times what it posted a year ago.

Toyota kept its Crown as the world's best-selling car manufacturer for two years in a row in the year 2013, looked General Motors and Volkswagen rivals 9, 98 million vehicles together with subsidiaries Daihatsu motor and Hino Motors have sold. 2014 Planned to sell 10.32 million vehicles worldwide.

Shares in Toyota jumped 20 percent are since early April 2013, if the fiscal year, in line with the benchmark Nikkei started is average. The camp closed on Tuesday about 5.5 per cent.

Toyota kept its global consolidated sales Outlook for the fiscal year ending in March at 9.1 million vehicles. It is expected to be 50,000 more vehicles in Japan in comparison to an earlier forecast, while it expected North American sales of 30,000 vehicles for sale and deletes in some other areas.

Four of the top five U.S. Auto seller on Monday accused extreme winter weather to worse than expected sales in January, analysts and executives a recovery in February and March predicted.

U.S. automakers Ford Motor and General Motors and Toyota as well as Honda Motor saw US car sales plummet in January is missing analysts estimates for the month.

Sales in the largest market where it the third largest car manufacturer Ford and General Motors, rose by 7 per cent in the year 2013 to around 2.24 million vehicles, supports United States, Toyotas by the strong sales of the Avalon and the Lexus RX is. Toyota's U.S. market share was unchanged at 14.4 percent.

While some economists and analysts 2014 expect sales to rise between 16 million and 16.5 million vehicles - industry sales at 15.6 million vehicles in 2013 - what is growing concern, which will increase competition, higher incentives and lower profits for companies.

Read More

Ford profit beats estimates on strength in North America

Ford Motor on Tuesday higher than expected quarterly profit as strength in the number 2 of the core U.S. automakers posted North American market to compensate for losses in Europe and South America.

The company, whose shares have risen more than 3 percent, confirmed the earnings prospects for 2014, which last month presented investors. Ford has described as a transitional year 2014, on the sample of CEO Alan Mulally Team and restructuring of the company provide that the strength, since he took over in 2006.

Ford has in the last month, that the costs for the introduction of new vehicles and a deteriorating Venezuelan economy delle its profit this year would. The messages sent, delete the shares of the company on its biggest one day percentage in more than two years.

The stock regained however ground after Mulally speculation nullified earlier this month, that he would leave Ford for the top job at Microsoft. He stressed that he remains long-term strategy engaged in the day-to-day business of the company, as well as setting.

Ford's net profit in the fourth quarter rose to $3 billion, or 74 cents per share, compared with nearly $1.6 billion, or 40 cents per share in the previous year.

The results include a $2.1-billion profit from the addition of the deferred tax assets in the balance sheet, as well as the fees of $311 million for last year pension of buyouts and layoffs in Europe.

Excluding the non-recurring effects, Ford earned 31 cents a share, 3 cents more than analysts polled by Thomson Reuters I/B/E/S had expected.

Sales rose 4 percent to $37.6 billion, above the expectations of analysts of $35,17 billion.

On Tuesday, Ford said that it expected car still a global profit this year of between $7 billion and $8 billion, with lower operating margins.

The company said, that its worldwide pension plans underfunded 2013 were $9 billion at the end of, an improvement of $10 billion from the end of 2012 and $1 billion better than it had previously forecast.

Read More

Profit drop halves such as vehicle sales to defense Oshkosh 46 pct

Oct 31 (Reuters) - Oshkosh Corporation, a manufacturer of specialty trucks, a 54 percent decline in quarterly profit as sales in the defense of the company crashed reported by spending cuts by the US Department of Defense.

Oshkosh attributable to 30 from $78.9 million, or 41 cents per share on $36.3, in the fourth quarter Sept. million, or 86 cents a share, fell a year earlier.

Sales in the defense of the company fell about 46 percent to $513,8 million.

Total revenue amounted to $1.73 billion 15.8 percent.

Read More

Ford boosts Outlook for Q3 profit beats estimates

DETROIT, Oct 24 Reuters) - Ford Motor Co boosted its full-year global earnings and margin Outlook on Thursday, benefiting from an improved prognosis in Europe and better than expected results in the third quarter.

The number 2 of the U.S. automaker expects to lose its pre-tax earnings of the previous year's $8 billion above and less money in Europe now. Previously predicted its 2013 Ford global profit and Europe losses 2012 levels would just be.

Ford his vehicle saw, to stabilize prices in the third quarter in Europe, said Chief Financial Officer Bob Shanks reporters, adding that the improvement progress in its European restructuring displayed.

Automotive Europe sales start to see "very, very modest growth" in the near future, said Shanks.

Ford's overhaul Europe modeled after CEO Alan Mulally "One Ford" strategy, which helped the company heavy losses in North America, to undo, where it is still the bulk of its profits.

In the third quarter, Ford reported a combined profit in its three overseas regions: Asia-Pacific and Africa, Europe and South America - the first time in more than two years Ford posted a profit in the regions outside of North America.

Third quarter net profit fell a little more than a fifth to $1.27 billion, or 31 cents per share as a result of almost 500 million $ in special charges, including $250 million for restructuring Europe issued.

In the third quarter rose 12 percent to $36 billion.

But excluding the non-recurring effects, the second-largest U.S. automaker reported adjusted earnings of 45 cents per share. That was better than the 38 cents expected on average by analysts, according to Thomson Reuters I/B/E/S.

Ford scored a North American pretax profit of $2.3 billion in the quarter, little changed from the previous year. In South America, the automaker had a pre-tax profit of $159 million, up sharply from $9 million in the last year.

The automaker reduced its losses in Europe to $228 million in the third quarter of nearly $470 million in a year. In Asia-Pacific and Africa Ford earned $126 million, nearly three times last year.

Read More

Toyota, nearing the record profit, slowed down in Southeast Asia

Toyota engine slower than expected growth in Southeast Asia, the regional market is third largest headache as the world's top-selling carmaker closes on the six year-old winning successes.

In ASEAN - who Toyota's largest market after North America and Japan, overwhelming Europe or China – the company by Government policy swings in Thailand and Indonesia and underperformed industry-wide growth been injured.

Toyota sold Southeast Asia's largest auto market Thailand around 237,000 vehicles in January-June, minus 2 per cent compared with the same period a year ago. That compared with an industry-wide growth of 22 percent, as it was taken end of a government subsidy, as well as weakness in more fuel efficient small cars.

In Indonesia, Toyota's are likely to deliveries to customers 2013, have in the first half of last year but significantly slower than the market as customers increased to keep purchases prior to an expected launch of a new small car.

Toyota's ASEAN exposure is higher than its competitors Honda Motor and Nissan Motor. ASEAN represents Toyota's a little more than 10 percent of the total.

Worldwide Toyota posted a 5.4 percent increase in its North America's largest regional market in January-June, as the United States is the strongest pace of annual sales see in more than five years.

In Japan, which is second largest market was sales 12 percent higher than previous year by green car subsidies ended last year, but it is profitable to see strong sales of luxury models.

Toyota, may this year the first automotive manufacturer to more than 10 million vehicles in a year had become, produce was on the right track to beat or to get close to its annual operating profit of this financial year.

But its Southeast Asian markets could get in the way.

"In the short term, sales are lower than expected in these countries and that could weigh on Toyota's business development,", said Issei Takahashi, analyst at Credit Suisse in Tokyo.

At the same time prepare export-dependent Southeast Asian countries after years of easy, brisk demand and strong domestic investment of a slowdown. The Fed is expected to soon pointed to his stimulus program that fueled the wave of credit in the region.

Weak yen helps Toyota

A weaker yen, the exports profitable and allows to convert money from abroad, at a price set to increase Toyota well to his performance.

On Friday, it will post an operating profit of April is expected to until June 649 billion yen, or $6.6 billion, up 84 percent on last year, according to the average estimate of four analysts survey by Thomson Reuters I/B/E/S.

That would be the biggest quarterly operating profit in six years and just shy of its record in April-June 2007, $6.9 billion or 675,4 billion yen and group is stronger than Volkswagen AG April-June operating profit of $4.5 billion and General Motors $1.8 billion.

For the fiscal year to March 2014 Toyota should an annual operating profit of $23.1 billion or 2.27 trillion yen according to average 26 analyst predictions, post, shortly before the record profit of 2.27 trillion yen, that which in March 2008 to the end of the year posted it.

Toyota, whose Thai 2012, last month deleted cut market share to 32 percent in January-June from about 36 percent in the year its 2013 sales forecast for the market by 10 percent to 450,000 vehicles, despite its forecast for industry-wide sales by 8 percent to 1.3 million vehicles have raised.

Toyota has lagged rivals in the small, fuel-saving cars, which are increasingly popular in Thailand. Rival Honda has seen strong sales of Brio surprise in Thailand. Toyota said that it wants to sell a new model this year.

In Indonesia, where Toyota has a 35 percent market share, there is a delay in the implementation of Government low cost green car programme for the promotion of small cars hit which was signed into law recently, but is still on hold pending the review. The Government also has fuel subsidies in June.

Read More

Ford posts strongest pre-tax profit in more than a decade

Paul A. Eisenstein, the Detroit Bureau

Ford Motor says, that made it the highest pre-tax earnings in the fourth quarter more than ten years. It earned $1.7 billion last quarter, largely due to increased sales of trucks and SUVs and higher prices for all models.
That was 31 cents per share, beat Wall Street forecasts, which ranged from 25 to 28 cents had.

For all 2012 profit for the year was $5.7 billion the automakers, down $307 million a year ago. It includes some special fees.

"The Ford team delivered strong results again underlines that our plan is working a Ford," said Alan Mulally, President and CEO Ford. "We are well positioned for another strong year 2013, as we our plan for customers in all markets of the world, with a whole family on - small, medium and large; Cars, utilities and trucks - fuel pump with the best quality, efficiency, safety, smart design and value. "

Sales totaled $36.5 billion last quarter, up $1.9 billion compared with the same period a year ago. For 2012 sales has become $134,3 billion, down $2 billion from a year ago.

TRUCK, sold mainly in North America, enough hard drove profits, were essential to overcome the European losses - and more than the manufacturers had forecast a few months ago.

The quarter Ford European loss of 732 million, against a loss of $190 million in the previous year. For all 2012, he climbed the European Ford loss to $1.73 billion. The automaker had forecast about $1.5 billion when it discussed in the third quarter results three months ago.

In North America, Ford said it has $1.87 billion in the quarter--twice as much as the $889 million it posted, a year earlier. Sales in the quarter amounted to $22.1 billion, up $2.5 billion.

The North American profit was $8,34 billion before taxes for the year.

Ford showed a preview of the 2015 F-150 at the Detroit Auto Show earlier this month, hoping to wait for prospects instead of buying General Motors new Chevrolet Silverado or GMC Sierra, to seduce sales the first half of this year.

Ford wanted to doubt in the minds of buyers now increase RAM pickup, expenditure for Chrysler Group revised for 2013 and earlier this month an award winner of the North American truck of the year by 49 U.S. and Canadian Auto journalists.

Ford had recorded a loss of $468 million in Europe last quarter and warned that losses were mounting. The automaker has announced to close three European plants, until 2014, but last quarter, that it would lose $1.5 billion in 2012 and this year again, and did not expect black ink said, Europe from about 2015 that.

Copyright 2013 the Detroit Bureau

Read More

GM predicts profit growth modestly in the year 2013.

The associated press, staff

General Motors expects only a modest increase in pre-tax profit this year as it rolls out several new cars and trucks worldwide.

The company thinks also, that modest grow global auto sales this year European car sales will fall worn by the United States and China, while.

The company told analysts at a German bank industry conference in Detroit Tuesday that the pre-tax profit margin in North America should rise in the next three or four years by 8 to 10 per cent. Profit margin is a measure of how much the company earns after costs of doing business.

GM began the presentation at the Conference, after the stock markets closed. Its shares fell $30,36 after hours trading 24 cents.

The automaker posted net income in the first nine months of last year, including almost 1.5 billion $ in the third quarter nearly 4 billion $. By FactSet surveyed analysts expect $5.35 billion net profit or 3.24 GM $ per share, when it posts the result in a couple of weeks in 2012. EBIT is expected to be $6.58 billion.

Chief Financial Officer Dan Ammann said before the Conference that GM at any time in the history of the company, is more new vehicles worldwide as roles for the two largest markets, the United States and China. GM started its last round of new products in the past year. 70 Per cent of global products update planned end of 2013.

Read More

Toyota profit jumps, raises full-year forecast

TOKYO - Toyota Motor Corp. nudged its full-year net profit forecast up to $9.7 billion, even as it put the cost of recent anti-Japanese protests and a slowing economy in China, the world's biggest autos market, at lost sales of 200,000 cars.

Sales at Toyota and its two Chinese joint ventures almost halved in September and October amid often violent protests in a dispute over ownership of islets in the East China Sea. Honda Motor's China car sales more than halved last month, while Nissan Motor's fell 41 percent.

Toyota said on Monday the impact of the drop in sales would cost it 30 billion yen off its full-year net profit. It sold around 900,000 vehicles in China last year.

While Honda last week cut its full-year net profit forecast by a fifth to take account of the China damage, and Nissan is expected to follow suit when it releases its July-September results on Tuesday, Toyota has found room to revise its forecasts higher as it traditionally gives more conservative earnings guidance and relies less heavily on China sales.

China accounts for around 12 percent of Toyota's sales, compared to Nissan's 27 percent and Honda's 20 percent. The backlash in China against Japanese goods allowed Hyundai Motor <005380.KS> and BMW to pick up market share.

Toyota increased its net profit forecast for the year to end-March to 780 billion yen, up 2.6 percent from its previous guidance. It said full-year operating profit would be 1.05 trillion yen, up a touch from its earlier forecast for 1 trillion yen.

July-September net profit more than trebled to 257.9 billion yen ($3.2 billion) on solid sales in North America and Southeast Asia, beating an average estimate of 228.8 billion yen from six analysts polled by Thomson Reuters I/B/E/S. A year ago, Japanese manufacturers were still reeling from the March earthquake and tsunami.

"It's uncertain when sales will recover in China. It's unlikely to happen anytime soon ... I think the market hopes for a recovery in January-March, but I don't really see what's going to drive that," said Kei Nihonyanagi, autos analyst at Barclays Securities in Tokyo.

Big in U.S.
In its biggest market, the United States, Toyota's sales rose 16 percent in October from a year ago, giving it and its Lexus luxury brand a 13.9 percent market share, up from 12.3 percent. Toyota said it hopes to sell 2 million vehicles in the United States, a market it sees growing to 14 million vehicles.


The Camry was the third-best selling vehicle in the United States in October after Ford's F-Series pickup truck and GM's Chevy Silverado, and led the mid-sized family sedan category ahead of Honda's Accord and Nissan's Altima.

Toyota and its group companies sold a total of 7.4 million vehicles worldwide in January-September, beating GM and Volkswagen to be the top selling carmaker. Toyota was the world's biggest automaker from 2008 through 2010, and could this year regain top slot after recovering from a series of crises - from the global financial meltdown and damaging recalls to natural disasters and the China row.

Toyota on Monday trimmed its forecast for global sales in the year to end-March - excluding those at its Chinese joint ventures - to 8.75 million vehicles from a previous 8.8 million.

Shares in Toyota, valued at nearly $135 billion - almost as much as Honda, Nissan and Hyundai combined - are up by a quarter this year, easily outpacing Honda's 4.5 percent gain, while Nissan is flat. Ahead of Monday's results, Toyota rose 2.2 percent to their highest close in 6 weeks.

Time to change
Toyota, which blazed a trail for mass producing quality cars but then tripped up by expanding too fast into the U.S. muscular SUV and truck market at a time when the yen, too, was rising, has been on a relentless cost-paring binge. Investors now want to see real signs that Toyota is fixing its core problem. As the company's president Akio Toyoda puts it: having to make "ever-better cars".


Satoshi Ozawa, an executive vice president, said Toyota expects further cost cuts during the current second half, and predicts a 300 billion yen improvement in profits from the cuts.

While Toyota is again making money, profitability in its core car business is much lower than its financial services unit, which brings in just 5 percent of revenue, but a quarter of operating profit.

"We are changing a lot from what we were. We want to prove how we have changed through our products, and we want to ask everyone to wait a little bit more," another vice president, Mitsuhisa Kato, said in August.

"It's tough for Toyota to dominate the market again with its current product line-up. It needs to improve overall product attractiveness, including design and ride quality," said Masatoshi Nishimoto, autos analyst at IHS Automotive in Tokyo.

More aggressive
One sign of change is Toyota's more controversial designs tested on recent models. For example: the "spindle grille" on some luxury Lexus models - a prominent grille pinched in the middle - gives the car a bolder, more aggressive look.


"We are starting to think about how we can produce cars that stand out, rather than cars that are accepted by everyone but have no unique identity," said Toyota designer Ryo Ikeda.

Another is the Toyota New Global Architecture (TNGA), a new framework to build better cars and cut costs by developing multiple models simultaneously to use more common parts. Shared parts mean suppliers can produce a larger number of fewer parts, cutting the unit price. The framework focuses on three platforms, each carrying 8-10 models, Toyota employees said.

The first car to be fully developed by the TNGA will be the revamped Prius for late-2014 release, followed by the subcompact Vitz and the next generation Camry around 2016, analysts said.

As the global market evolves, Toyota is looking to strengthen its foothold in emerging markets, and plans to double its China sales to 1.8 million cars by 2015. It has positioned Southeast Asia as a "second mother-base" after Japan.

Read More

Chrysler books $436 million profit in the second quarter

(Updated 14: 45 East) DETROIT--Chrysler Group LLC further earn turnaround from near death three years ago $436 million in the second quarter and confirmed that it is a full-year operating profit of at least 3 billion $ show.

Chief Executive Sergio Marchionne, warned employees in an e-Mail to Chrysler on Monday against overconfidence in the light of the recent success of the company after "Life through a near-death experience" in 2009.

"History teaches, that it simply in good times to develop bad habits," Marchionne enrolled in the e-Mail from that copy was acquired by Reuters. "This has become no time around corners, no time to our version of undisciplined, no time to forget how difficult it was, our way to claw back to viability."

A year ago, in connection with Chrysler, $370 million in the second quarter, including losses relating to $551 million payments of the Government lost credits of its 2009 bankruptcy and rescue.

In the second quarter, revenues rose by 23 percent to $16,7950 billion.

"Our results reflect to deliver the best quality and value for our brands, a tireless pursuit of the people of the Chrysler Group," said Marchionne, the CEO of Fiat, in a press statement.

Chrysler is majority owned by Italian Fiat SpA.

Fiat, the result of reports in the second quarter on Tuesday. In the past several quarters, its have through weak earnings have been increased the strength of Chrysler. Marchionne will develop during a conference call Tuesday with reporters and investors on the result of Chrysler.

Fiat result have through the economic crisis in Europe under pressure has been used. It is based also on southern European markets where sales are the hardest hit.

US sales by 24% worldwide vehicle sales rose 20 percent to 582.000 in the second quarter, led by a rise in. Sales outside the core market in North America rose to 70,000 vehicles 58 percent in the quarter.

Earlier this month, Fiat to exercise its call option, another 3.3 percentage points of Chrysler, announced increase its stake to 61.8 percent done to buy. Fiat neither Chrysler have even pointed out that the deal were sealed.

The remaining shares in Chrysler are a retiree healthcare trust of the United Auto Workers Union manages.

Earlier this month, said Marchionne of operating profit for year as a whole, "the goal of $3 billion in your area." "We could overshoot."

Sales have steadily for Chrysler since the first quarter of 2010, rose when it started breaking out their business results by Fiat. At the time, Chrysler was $9,6900 billion revenue.

Until June Chrysler has reported 27 consecutive months growth in the United States year after year. This strip followed approximately 24 consecutive months of U.S. sales.

Marchionne and his management team will be with the overhaul of Chrysler vehicle lineup that outdated and panned in quality 2009 took over surveys and reviews as Fiat management control has been credited.

Chrysler is now up sales for its new small Dodge Dart sedan ramps, which in the compact class segment of the US car market-a crowded segment competes, the the Honda Motor Co civic, Toyota Motor Corp corolla, the Ford Motor Co. focus and General Motors co. Chevrolet Cruze contains.

The DART is the first vehicle from Fiat and Chrysler will be developed together.

Fiat management control and a 20 percent stake in Chrysler in the context of the insolvency plans restructuring that the Auburn Hills, Michigan, automakers in 2009, the extinction of saved.

Chrysler bar at the end of the second quarter rose to $12,0750 billion from $10,1750 billion a year ago and $11,30 billion at the end of the first quarter. Total available liquidity at the end of the second quarter was $13,40 billion.

Free cash flow was $866 million at the end of the second quarter, down from $1.70 billion at the end of the first quarter, and up from $174 million a year ago.

Copyright 2011 Thomson Reuters.

Read More

GM reports $1 billion Q1 profit, beating estimates

GM reported a Q1 profit that beat expectations as it was able to boost vehicle prices and cut losses in Europe, with CNBC's Phil LeBeau. Bob Lutz, former GM vice chairman, also weighs in.

By msnbc.com staff and news wires
GM (GM) posted a profit of $1 billion in the first quarter, beating Wall Street expectations on strong demand in its key North American market.

GM also said the U.S. economy was improving and it expected its core North American results in the second and third quarters to largely match the first quarter due to scheduled downtime at its large truck plants.

"We're clearly seeing some improvement in the (U.S.) economy," Chief Financial Officer Dan Ammann told reporters. "It's a modest underlying improvement, but it's patchy and it won't necessarily all go in a straight line."

The quarter included the impact of $800 million in higher vehicle pricing and lower consumer incentives, half of which came in North America. Last year, GM offered heavy consumer incentives to drive sales in the U.S. market, something it did not do this year.

GM lost $256 million pretax in Europe, where it took a $590 million charge related to pension costs. Excluding one-time items related to the impairment of goodwill primarily in Europe, the No. 1 U.S. automaker reported a profit of 93 cents per share.

Analysts, on average, expected GM to earn 85 cents per share, according to Thomson Reuters I/B/E/S.

Net income fell to $1 billion, or 60 cents a share, from $3.15 billion, or $1.77 a share, in the same quarter a year earlier. Last year's quarter included a one-time gain of $1.5 billion related to the sale of stakes in Delphi and Ally.

Revenue for the quarter was $37.8 billion, up 4.4 percent from $36.2 billion a year ago.

Reuters and The Associated Press contributed to this report.

Read More

GM posts highest annual profit ever

Stan Honda / AFP - Getty Images

Things are looking up ... mostly. The General Motors headquarters January 10, 2012 in Detroit, Michigan.

Updated at 12:20 p.m. ET

General Motors posted flat fourth-quarter income Thursday but still managed to haul in $7.6 billion worth in profits last year, up 62 percent from the prior year.

It was the highest annual profit ever for the automaker, which emerged from bankruptcy protection in 2009 after a government-led bailout.

The U.S. government still owns 26.5 percent of the company and is waiting for the share price to rise before selling in an effort to recoup the bailout money. GM stock was up 6 percent at $26.43 in midday trading after the earnings announcement.

"We will build on these results as we bring more new cars, crossovers and trucks to market," CEO Daniel Akerson said in a statement.

Full-year revenue rose 11 percent to $105 billion.

North America led the way with a $7.2 billion pretax profit. But problems surfaced that could hurt future earnings. GM lost $700 million before taxes in Europe, and lost $100 million in South America.

"We obviously have work to do still and a long way to get to the objectives we ultimately want to get to," GM Chief Financial Officer Dan Ammann told reporters.

"We clearly have work to do in Europe. We have work to do in the South America business. Frankly, we have work to do all around the company in terms of cost opportunity," he added.

GM'S fourth-quarter profit was flat with 2010. GM earned $500 million, or 28 cents per share. Revenue rose 3 percent to $38 billion. Before one-time items, GM earned 40 cents per share. Analysts expected earnings of 42 cents on revenue of $37.9 billion.

Ammann said GM has not gone far enough in cutting costs in its European operations, but declined to provide a 2012 financial forecast for a unit that the No. 1 U.S. automaker has struggled to return to profitability. Overall, GM expects 2012 sales to top the $150.3 billion it saw in 2011 and its market share to remain flat.

Last year, GM made the bulk of its income in North America, where its pretax profit totaled $7.2 billion. International Operations, which includes Asia, made $1.9 billion before taxes, but that was down.

During the year, GM's global sales rose 7.6 percent to 9.03 million vehicles to help it reclaim the title of world's largest automaker from Toyota Motor Corp.

This year, GM expects to increase its revenue as global auto sales grow and it charges more for models. However, it will make less money per vehicle as the mix of sales continues to shift to cars from trucks, which have bigger sticker prices. It also expects to invest $8 billion on new products and technology, and says pension expenses will rise. The company wants to keep expenses down by freezing its underfunded U.S. pension plan for salaried workers.

GM said 47,500 blue-collar workers in the U.S. will get $7,000 profit-sharing checks in March. The checks are based on North American performance and are a record for the company.

The company has placed Vice Chairman Steve Girsky in charge of the European management board and is adding executives in preparation for restructuring. Factory closures and layoffs are likely but could provoke a fight with powerful labor unions.

Girsky has said GM intends to fix the European unit, made up of the Opel and Vauxhall brands, and keep it in the company. GM came close to selling the unit in 2009.

Read More

General Motors might report a record profit

GM employees of Maurice Vauss checks the fit and eco finish one Chevy Malibu 2013.

By msnbc.com staff

Only three years after the automaker is in the bankruptcy driving government-run, require a massive bailout by the taxpayer-funded to keep in business, General Motors his sights on more than $10 billion per year, according to a report in the Wall Street Journal.

The newspaper reported that GM is already on the way to achieve this goal, citing company sources the magazine said seen have, that the company in the fourth quarter 2011 results, which will be reported next week. GM is net profit of around $8 billion, the highest ever, and almost twice the previous year's $ 4.7 billion figure, the newspaper said.

Growth in China and strong profits in North America, where GM has to shed billions of dollars in costs and was capable of higher prices, command is the improved quarterly profit, reported the magazine.

On top of the quarterly gain, GM also to his Gewinnspanne--the part of revenue left after the payment of Aufwendungen--currently 6 percent to 10 percent in the next few years, Daniel Ammann, chief financial officer, said the magazine. It would be the highest profit margin in the automotive industry.

In the year 2009 billion of dollars to lose before dying out, GM had to take a rescue by the Government of about $50 billion and go through a Government run bankruptcy.

Read More

Chrysler profit triggers profit-sharing checks

By Paul A. Eisenstein, The Detroit Bureau

Chrysler workers have a variety of reasons to be pleased about the maker’s improving fortunes. They’re not only seeing thousands of jobs added but receiving their first profit-sharing checks since 2005 as a result of the maker landing in the black for the first time since 1997.

Meanwhile, Sergio Marchionne, the CEO of both Chrysler and Fiat, said the U.S. makers positive net offset a deficit at its Italian rival, which has been hammered by the European financial crisis – which has been particularly severe in Italy.

Marchionne wrote to U.S. hourly employees – who negotiated an improved profit-sharing formula as part of last-year’s new contract with the United Auto Workers Union, advising them they would get an average $1,500 each.

“This is a reward that you have earned,” Marchionne proclaimed. “Your efforts rewrote the history that so many naysayers had forecast,” he added, a reference to the many outside skeptics who argued in favor of shutting down Chrysler rather than approving the maker’s 2009 federal bailout.

Chrysler reported $183 million in net earnings for 2011, though the profit-sharing formula will take into account the $225 million earned in the fourth quarter.

Chrysler’s financial turnaround stands in sharp contrast to the performance of its Italian partner, Marchionne noted during a conference call to discuss the maker’s finances.  The fourth-quarter results offset losses by Fiat, the executive explained, stressing that this was an unacceptable situation.

“That is the definition of what I would call an unhappy marriage, so somebody better get off their butts and snap onto the grid,” said Marchionne, “because we are not pulling the cart here.”

For the year, Fiat reported a profit of $3.2 billion, double what it did in 2010 – but removing Chrysler’s contribution, the 2011 number would have dropped 6% to $1.37 billion.

The decline reflects both the weak European economy but also the fact that Fiat’s home market assembly plants are notoriously inefficient.  Marchionne has been pressing for productivity improvements and already won some changes from Italian unions.  But he is demanding more – while warning that Fiat could shift resources out of Italy, possibly to the Chrysler side of the trans-Atlantic alliance.

“We cannot continue to subsidize a sub-optimal, inefficient manufacturing asset based on the basis of ideology,” he said during the call.

The situation for American workers has improved significantly, however, after years of cutbacks and concessions.  The $1,500 profit-sharing checks follow payment of a $1,750 per worker ratification bonus issued after UAW members approved their new contract.  They will get another $1,750 check once Chrysler achieves four consecutive quarterly profits.

Meanwhile, the maker is rapidly adding new jobs in the U.S., after a decade of cuts.  That includes nearly 2,000 at the Jeep and Viper plants in Detroit and more than 1,000 Marchionne confirmed will be added at a factory in Belvidere, Illinois. It will get a third shift to handle production of the new Dodge Dart sedan.

Read More

Costs, Europe Ford make a profit by product

Ford Motor Co. recorded a lower than expected in the fourth quarter profit Friday due to the disappointing results outside of North America and soaring commodity prices costs.

Earnings Ford operating profit fell to $1.1 billion, or 20 cents per share, of almost $1.3 billion, or 30 cents per share, a year earlier.

Analysts, expects an adjusted earnings of 25 cents per share, on average according to Thomson Reuters I/B/E/S. Ford shares in the news fell.

Ford's profit hurt costs higher raw material prices, unfavorable exchange rates and poorer results in Europe, Asia and South America during the quarter. $2.3 Billion for the year to some of the $2.2 billion were Ford's product costs forecast.

"We saw worsen the external environment and really affected most regions except North America, and then we saw something bigger than we expected impact of raw materials, currency, and also the Thai floods," Chief Financial Officer Lewis booth told reporters.

Loss deepened Ford's losses in Europe during the quarter to $190 million compared to $ 51 million a year ago. To date, said that Europe would remain "difficult" for some time. In 2012, Ford expects that growth in the region will be dampened by the debt crisis and strong measures.

Ford in the face of increased competition in South America, where there is an operating pre-tax profit of $108 million down from $ 281 million a year earlier reported.

Production losses due to the floods in Thailand hurt its results in Asia compared to where quarterly loss of 83 million $ a profit of $23 million a year ago.

Ford reported a net profit in the fourth quarter of $ 13.6 billion or $3.40 per share, driven by a one-time tax gain of $12.4 billion. A year before Ford posted net income of $190 million, or 5 cents per share.

The higher net income was the result of a change in accounting policy, the Ford said reflects confidence in the long-term profit Outlook. The one-time gain led net profit of $20.2 billion the highest profit since 1998 to a year-round.

Copyright 2012 Thomson Reuters.

Read More

Toyota halves its annual profit forecast

TOKYO — Toyota, set to lose its crown as the world's top-selling automaker this year, more than halved its annual profit forecast to $2.6 billion, reeling from a strong yen and Thai floods that severed its supply lines.

Toyota Motor Corp's inability to make enough cars - production was also ruptured by the earthquake and tsunami in Japan in March - is expected to see it overtaken in sales this year by General Motors Co and probably Volkswagen AG.

While Toyota is poised for record production next year as it rebuilds depleted inventories, the yen's persistent strength against virtually every major currency means profit recovery will continue to be slow given its huge exposure to exports.

"Toyota is hitting a trough," said Cho Soo-Hong, auto analyst at Woori Investment & Securities in Seoul.

"Its market share will recover next year with output normalization and new model launches, but I don't expect too much from Toyota's earnings as the yen is expected to remain strong because of appetite for safe-haven assets."

Japan's top automaker expects operating profit to fall 57 percent to 200 billion yen in the year to end-March, well below a consensus forecast of 419 billion yen in a survey of 23 analysts by Thomson Reuters I/B/E/S.

The company's previous forecast of 450 billion yen, issued in August, was withdrawn last month after Thailand's worst floods in 50 years cut off the supply of parts to Toyota's factories in 10 countries. It said the floods would effectively cost the company 230,000 vehicles in lost production this business year.

With floodwaters having receded and recovery work under way at Thailand's industrial parks, Toyota has said its production has returned to normal in most regions, leaving just Thailand and South Africa operating at reduced rates. It said on Friday Thai production was expected to return to normal this month.

Toyota projected an annual net profit of 180 billion yen, down 56 percent from last year and a sharp cut from its previous forecast of 390 billion yen.

The Thai floods and the March earthquake and tsunami hit Japanese automakers particularly hard due to their dominance at home and across southeast Asia.

Toyota said the floods accounted for 120 billion yen of the downward revision to operating profit, while the yen's strength, which makes exports less competitive and eats into overseas profits when brought back to Japan, cut another 190 billion yen. These were offset by 60 billion yen in profit-boosting measures.

Once the supply issues are repaired, Toyota's new models, including the Camry sedan, are set to pose tough competition for rivals such as Hyundai Motor Co next year, analysts said.

But Chief Financial Officer Satoshi Ozawa expressed deep frustration with the firm yen, which Tokyo has failed to weaken through intervention, warning that current exchange rates could threaten Japan's very foundation as an export-driven economy.

"(The revision) is partly because Toyota's exposure to currency swings is big, but I think it also brought to light the severity of the crisis Japan is in, because the country is founded on its export strength," Ozawa told a news conference.

Toyota has committed to building 3 million vehicles a year in Japan by improving its cost structure and selling more cars at home, accounting for about 40 percent of its total global output. With more than half of that bound for export, its parent-only operating loss forecast ballooned to 530 billion yen, from a previous outlook of 370 billion yen.

Ozawa said the strong yen was forcing Toyota to raise car prices significantly in some markets, even if that dents sales volumes. Toyota expects to sell 7.38 million vehicles worldwide in this financial year, fewer than the 7.6 million it flagged in August.

"It will be difficult to keep domestic production if the dollar stays below 80 yen," said Yasuo Sakuma, portfolio manager at Bayview Asset Management.

"When the dollar fell from 100 yen to 90 yen, or from 90 yen to 80 yen, the main question was whether Toyota can cope with the pace of the yen's strengthening. But when the dollar is below 80 yen, the problem is the absolute level of the dollar. Given this, we just can't buy Toyota shares."

Those shares closed down 0.4 percent at 2,636 yen before the forecasts were announced. The stock has fallen 18 percent this year, in line with Tokyo's main Topix index, and last month touched a 15-1/2-year low. Shares in Honda Motor Co are down 24 percent year to date.

Under a new business plan, Toyota is aiming for operating profit of at least 1 trillion yen and an operating margin of 5 percent over the next year or so, assuming parent-only sales of 7.5 million vehicles and a dollar of 85 yen. The dollar currently trades at 77-78 yen.

Ozawa said the European debt crisis posed another worry. As well as dampening demand in the region, he said, the crisis could prompt banks to pull money out of emerging markets and touch off a recession there, which in turn could also weaken those countries' currencies against the yen.

"The latter two factors would have a very big impact on our operations," Ozawa said. "We're watching developments very carefully ... as we compile our plans for next year and the year after."

Among Japan's automakers only Honda, the hardest hit by the series of natural disasters, has yet to come out with annual guidance. The chief financial officer has said he expects to provide annual forecasts by late-January.

Copyright 2011 Thomson Reuters.

Read More

Europe drags down General Motors' 3Q profit

DETROIT — The fragile European economy is dragging down General Motors' profits, forcing its management to look harder for cost cuts and ways to boost revenue in the struggling region.

GM said Wednesday that its third-quarter net income fell 15 percent from a year earlier, pulled down by losses in Europe and South America and weak earnings in all areas except North America and China.

The company's shares fell over 10 percent to $22.31 Wednesday as GM executives were backed off an earlier prediction that the company would break even before taxes in Europe this year.

Europe faces a financial crisis and could slip into recession. Growth is slow is several key nations. Italy, the region's third-biggest economy, is bucking under the weight of government debt. Greece faces default unless it can accept a new debt deal, and the region also is dealing with high unemployment, stingy bank lending and declining exports. General Motors Co. is among the first U.S. corporations to forecast lower earnings due to the problems.

GM CEO Dan Akerson told industry analysts that the company's performance in Europe is due in part to slower sales "which itself is a manifestation of Europe's economic morass." He said the results in Europe and South America are "not sustainable and not acceptable" and said GM must look for more ways to control costs. But Akerson stopped short of giving specifics.

Sales in Europe are about 18 percent of GM's 2.2 million global total, but they are expected to weaken as the economy slows in the fourth quarter.

Citi Investment Research analyst Itay Michaeli said other automakers have hinted at difficulties in Europe, but GM was sounding a louder alarm based on the third-quarter performance.

Michaeli said he thought GM would have been able to remove more costs in Europe by now. Third-quarter costs at GM Europe were about even with a bad quarter a year ago, so that means more cuts will have to be made, probably by cutting factory capacity with plant closures, he said.

"These guys just aren't going to sit around and let Europe lose a bunch of money," he said. "I imagine they're working on plans to rightsize capacity to make money on lower (sales) volume."

In the third quarter, GM's net income fell to $1.7 billion, or $1.03 per share, compared with $2 billion, or $1.20 per share, a year earlier. The quarter's figures also included $200 million in dividends paid on preferred stock that didn't exist a year earlier.

GM posted a pretax loss of $292 million in Europe. Its profit rose slightly in North America to $2.2 billion, but earnings at its international operations, including China, fell 29 percent to $365 million. South American operations also swung to a loss of $44 million for the quarter.

Without the loss in Europe and the preferred stock payment, GM's net income would have increased.

Chief Financial Officer Dan Ammann said GM had a solid quarter, but needs to improve its profit margins in all regions. The company also needs to take better advantage of its global scale, building the same cars for all markets to cut engineering and research costs, he said.

Ammann said that in Europe, GM will follow the formula used to turn around the company's North American operations. GM cut its break-even point in North America by closing 16 factories since 2008. It also won concessions from the United Auto Workers union, and it rolled out new vehicles that are selling well. But Ammann wouldn't say for certain if plant closures are coming in Europe.

"There's nothing that's off the table," he said.

Ammann said the company has made significant progress in Europe and is more than $1 billion ahead of last year's pretax earnings.

Cutting costs appears to be a bigger challenge than trying to sell more cars in the region. It's difficult for GM to close plants and cut staff in Europe because of strong unions and laws that protect jobs.

European sales rose 4.6 percent during the third quarter. But the growth rate was about half the 9 percent increase GM reported worldwide.

In South America, Ammann said GM is revamping an aging car and truck lineup to try to boost sales. It also offered buyouts to employees that resulted in a 4 percent reduction in the work force there to deal with cost inflation, he said. GM is coming out with nine new vehicles in the next year in South America, including the Chevrolet Cruze compact and a subcompact named the Cobalt, he said.

Ammann said GM plans actions companywide to improve profit margins. Its profit margin, or pretax profit as a percentage of revenue, is around 6 percent, a full percentage point lower than its closest global competitors, Volkswagen AG and Ford Motor Co.

While the company plans to cut costs further, it mainly will boost profit margins by increasing revenue, he said.

"You can't cost-cut your way to prosperity in the business. You've got to grow the business, get the right vehicles on the road," he said.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Read More

Toyota’s profit hit by floods, strong yen

Toyota said Tuesday its quarterly profit tumbled 18.5 percent on plunging sales caused by parts shortages from the tsunami disaster that hit northeastern Japan earlier this year.

Japan’s top automaker said that vehicle sales plunged in the key markets of Japan and North America, but it also said it was making up for some of the losses by strong sales in countries such as India and Indonesia.

Toyota also warned that it faces a new challenge from flooding in Thailand, declining to give a forecast for the full financial year ending March 2012, citing uncertainties stemming from the recent Thai floods which have disrupted supplies of parts and prompted it to cut some car production.

All the Japanese automakers are suffering after the March 11 earthquake and tsunami in Japan that damaged the operations of their key parts suppliers. That meant they made and sold fewer cars than normal.

The Thai floods, which began in July and now threaten central Bangkok, are compounding the production damage. The country is the Southeast Asian base for several automakers. Toyota said production cuts in Japan, which began last month, will continue through Nov. 18.

Also battering Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury models, is the surging value of the yen.

The automaker’s President Akio Toyoda said earlier this week that the strong yen has reached levels “far beyond what is tolerable,” threatening to make it necessary to move production out of Japan.

He asked the government to do more to prop up the dollar, stressing that manufacturing in Japan could be “destroyed.” Toyota said the unfavorable exchange rate erased 80 billion yen ($1 billion) from its latest quarterly net income.

Toyota was the world’s biggest automaker in annual vehicle sales last year, but it sank to No. 3 in the first half of this year, trailing U.S. rival General Motors and Volkswagen AG of Germany.

Toyota had shown tremendous ability to bounce back after the March disaster, reaching pre-tsunami levels of global production in September, faster than its initial expectation of recovering by the end of this year.

But then the floods in Thailand struck and are expected to cost Toyota tens of thousands of vehicles in lost production.

For the first half spanning April 1 through Sept. 30, Toyota’s profit nose-dived nearly 72 percent to 81.6 billion yen ($1 billion). It had eked out a tiny profit in the April-June first quarter. First-half sales fell 17 percent to 8.01 trillion yen ($103 billion).

The Associated Press contributed to this report.

Read More

Chrysler posts $212M profit in third quarter

DETROIT — Chrysler is selling more cars and trucks for higher prices, pushing the company back into the black in the latest quarter. It's another sign that the once-troubled automaker is turning around under its new Italian management.

Auburn Hills, Michigan-based Chrysler reported Thursday that its net income was $212 million for the July-September period, its second quarterly profit this year and only the second since 2006. Vehicle sales worldwide rose 24 percent, and revenue was up 19 percent to $13.1 billion.

In last year's third quarter, the privately held company lost $84 million, but Chrysler, now run by Italy's Fiat SpA, said its fortunes have improved because of increased demand for its new or revamped Chrysler, Dodge, Jeep and Ram cars and trucks.

Yet even with the profit, Chrysler Group LLC hasn't fully recovered from its 2009 brush with death. The company, neglected by two previous owners, nearly ran out of cash and needed a government bailout to survive bankruptcy restructuring.

"They are still in the most precarious position out of the Detroit Three, but they're making progress in a market that's really not doing that well in the first place," said Aaron Bragman, an industry analyst with industry consulting firm IHS Automotive.

Auto sales in the U.S., Chrysler's primary market, have sputtered all year at an annual rate of around 12.5 million vehicles as debt-weary Americans hold onto their vehicles longer. The sales rate is enough for Chrysler, General Motors Co. and Ford Motor Co., to make money, but it's far short of the 2005 peak of 17 million.

Chrysler hasn't made an annual profit since 2005, but it's getting closer to profitability with a mix of strong new products.

Jeep was the top brand from a U.S. automaker in Consumer Reports' latest reliability rankings, which were released Tuesday. Chrysler was also the most improved brand, moving to 15th place from 27th. The Jeep Grand Cherokee SUV, Chrysler 200 midsize car and Dodge Durango SUV have been among the company's recent successes.

Chrysler, Bragman said, has raised the quality of its vehicles by revamping them in a short amount of time under Fiat's leadership. The company, he said, has changed manufacturing methods and now puts cars and trucks through rigorous tests.

"They've inserted whole layers of testing that never were there before," he said. "They've improved the feedback when problems do go wrong. The response time is now measured in hours rather than years."

But even with the improvements, Bragman said Chrysler still has a way to go to change its longtime image of poor reliability. "It's going to take a couple of years of consistency," he said.

Chrysler's third-quarter profit wasn't quite big enough to erase a loss from the first half of the year. The company ended the first nine months $42 million in the red, mainly due to a $551 million accounting charge for refinancing its government debt in the second quarter. Excluding the debt charge, the company earned $509 million during the first nine months.

Chrysler increased its earnings forecast for the full year to a profit of $600 million, excluding the accounting charge. Previously it had forecast $200 million to $500 million. It also predicted 2011 revenue of $55 billion.

The company is getting healthy prices for its cars, and that's helping it make money. Chrysler's average U.S. sale price rose 4.5 percent in the third quarter to $30,387, according to the Edmunds.com automotive website. Also, Chrysler's share of the U.S. market increased almost 2 percentage points to 11.6 percent last quarter.

Chrysler also got good news on the labor front this week. On Wednesday, the United Auto Workers announced that 55 percent of the Chrysler workers voting on a new contract approved the deal. The four-year pact, which covers 23,000 U.S. factory workers, will hold down the company's costs by giving workers profit-sharing and other bonuses instead of annual raises.

During the quarter, Chrysler also helped its bottom line by cutting borrowing costs through refinancing of $7.5 billion in high-interest loans from the U.S. and Canadian governments. The company said it paid $282 million in interest last quarter, down $34 million from a year earlier.

Fiat controls Chrysler with a 53.3 percent stake in the company. Under a 2009 deal with the U.S. government, Fiat got a 20 percent stake after Chrysler exited bankruptcy protection. Fiat gradually raised its stake and gained a majority share in July, when it paid the U.S. Treasury for its remaining shares.

Fiat expects to raise its ownership of Chrysler to 58.3 percent by the end of the year, when it introduces a 40 mpg car for the U.S. market. The high mileage car was also part of its deal with the government. A union trust fund that pays retiree health care costs owns the rest of the shares.

Chrysler's earnings also helped its Italian owners. Fiat released third-quarter earnings on Thursday, posting a 67 percent profit increase to euro112 million ($157 million) thanks to demand for Chrysler cars and trucks in North America.

Chrysler may return to the public stock exchanges sometime next year, with the trust fund raising cash by selling at least part of its stake.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Read More

Ford posts 10th consecutive quarterly profit

DETROIT — Ford Motor Co posted lower third-quarter earnings after misjudging the threat of higher commodity costs and writing down the value of hedge positions.

But it was the 10th consecutive quarterly profit for the No. 2 U.S. automaker and topped Wall Street forecasts, extending a recovery expected to clear the way for a resumption of dividends.

Chief Financial Officer Lewis Booth told reporters Ford would not be addressing the timing of reinstituting a dividend yet. It last paid a dividend in September 2006.

The company on Wednesday posted third-quarter net income of $1.65 billion, or 41 cents per share, down from $1.69 billion, or 43 cents per share, a year earlier.

Revenue rose to $33.1 billion from $29 billion.

Excluding one-time items. Ford earned 46 cents per share. On average, analysts forecast 44 cents, according to Thomson Reuters I/B/E/S.

Ford lowered its automotive debt by $1.3 billion in the quarter, to $12.7 billion. It will save about $1 billion in interest payments in 2011 compared to 2010 because of its debt-reduction efforts.

In the third quarter, Ford benefited from stronger-than-forecast output in North America after U.S. auto sales steadied over the summer without evidence of the renewed slump some analysts had feared. Ford also raised its global and North American production forecast for the fourth quarter.

Consumer Reports says Ford is slipping

Last week, Booth said Ford could restart a dividend before it regains an investment-grade credit rating, but he did not discuss the timing of such a move.

On Wednesday he said, "We want to return to paying a dividend as soon as we think our balance sheet will stand it, and when we're ready to talk about it we will."

Morgan Stanley analyst Adam Jonas said in a note for clients before the earnings were released, "We expect the focus going into the Ford call to be on the timing and size of its dividend."

On the heels of last week's labor agreement between Ford and the United Auto Workers union, Fitch Ratings and Standard and Poor's both raised the company's credit rating to within one notch of investment grade.

Moody's Investors Service has not changed its rating on Ford, which is currently two notches below investment grade. But earlier this month Moody's said it was considering an upgrade.

Ford was last at investment grade in 2005.

Costs related to the contract ratification by Ford's 41,000 unionized auto workers were not reflected in the third-quarter results.

Ford shares were down 7 cents to $12.36 in premarket trade.

Copyright 2011 Thomson Reuters.

Read More

GM first-quarter profit nearly doubled

DETROIT - motor quarterly profit nearly doubled general expectations in the second quarter, beating, as the top U.S. automaker worldwide took a larger share of the revenues and raised prices on its vehicles.

Coming out of bankruptcy, said GM Chief Dan Akerson and enough cost to recession-proof had removed the business other executives of the company so that it could thrive in a weak car market. The industry's sales slump in the second quarter and the risk of a double-dip recession could provide the first major test for this claim.

"There is an increased level of uncertainty," GM chief financial officer Dan Ammann told reporters. "But what we are trying to do, and what we have done successfully, is to configure the business with a low break even point and a strong balance sheet, so that we, what scenario can handle comes."

Early in the week fell to its lowest level since first public shares of the company in November last year to provide them, because investors like GM fare is concerned, if consumers tightening their purse strings in the sputtering economy.

The U.S. based automaker is strong in smaller, more fuel-efficient cars as the popular Chevrolet Cruze push, but a good portion of the profit is still strongly based on sales of more profitable trucks in the US market.

Net profit in the second quarter rose to $2.52 billion, or $1.54 per share of $1.33 billion, or 85 cents per share a year earlier.

Earnings per share, blowing past, respondents from Thomson Reuters I/B/E/S $1, 20 analysts on average had.

Sales rose 19 percent to 39.4 billion $, about the $36.74 billion, a quarter, analysts had expected, in the United States car sales soft a patch taken.

The results represent the second full quarter since GM IPO and a restructuring meant to keep industry to punish boom-bust cycles profitable the largest U.S. automaker by the.

GM was created before the bankruptcy in 2009 after a 52 billion dollar taxpayer orchestrated financed bailout by the Obama administration. The US Treasury has 32 percent of the GM common stock.

The company increased the second quarter a profit before interest and taxes of $1 billion by pushing through higher prices on its vehicles worldwide.

GM said its share in the global vehicle sales rose by 12.2 percent in the quarter of 11.6 percent a year earlier.

GM reported gains in all operating regions in Europe, where it has fought to restructure its Opel unit. It was the first time that all four regions have been profitable since the initial public offering.

Life Inc.: I'm no new car this year broke

However came those profits as its Japanese rivals, led by Toyota Motor Corp., fought with fewer vehicles for sale in March due to the earthquake in Japan.

Analysts worry that if the U.S. recovery hits a pothole in the second half, GM could be forced, incentives to lure buyers for its vehicles increase. GM first quarter have been marred by heavy incentives, but the automaker elected back these offers.

The automaker is also a new challenge in the second half as Toyota and other Japanese automaker back into full production levels and look to create lost ground in sales.

For the second half of the year GM expects its adjusted earnings before interest and taxes "modest" less than the first half, but the year is on to improve in 2010.

GM ended up with total liquidity of almost $40 billion of $36.5 billion in the quarter end of June. However have to wait for investors as Ammann who would be the focus of the company said its conservation probably share buybacks or dividends "balance sheet fortress" to reinvest in the business and withstand all economic shocks.

Copyright 2011 Thomson Reuters.

Read More