GM To Post It’s First Profit Since 2004

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General Motors hasn’t posted an annual profit since 2004.
Since then, the company has shed five brands, parted ways with three chief executive officers, lost more than $88 billion on its way to bankruptcy and received $49.5 billion from the federal government.

Thursday, the automaker is expected to announce its first annual profit in six years. And while its fourth quarter wasn’t as strong as its first three, analysts are pointing toward the expected profit as further proof that GM’s government-backed bankruptcy was a success.

This week’s earnings report will provide evidence that it worked, said Aaron Bragman, an analyst with IHS Automotive.

“They’ve done very well on the program that was put in place by the government” and new executives, Bragman said. “First and foremost, this has to be run like a profitable business.”

Profitable, indeed. GM is expected to report a 2010 net profit of $5.3 billion, according to an average of estimates from 18 Wall Street analysts reporting to Thomson One Analytics.

The federal government has yet to recoup its full investment and General Motors, and absent a dramatic stock surge, it’s far from a sure bet. Nonetheless, the Treasury Department continues to scale back projected losses for the auto bailout even as the White House touts countless jobs saved by the action.

For GM, Thursday’s profit report will mark the latest chapter in a remarkable turnaround that saw the company shrink as profits grew.

Here at Precision Electric, the automotive manufacturing industry directly effects our business. We have customers nationwide who manufacture parts for GM, as well as nearly every other car manufacturer. We have noticed growth in the automotive industry over the past 12 months, and this growth continues to grow on a month to month basis. Let us know if we can offer your industry any industrial electronics equipment for repair or replacement.

Ryan Chamberlin
Inside Sales, Customer Support
[email protected]
Call Toll Free: 1.877.625.2402

Source:http://www.mlive.com/auto/index.ssf/2011/02/report_general_motors_to_post.html