GM's performance wows Wall Street

Associated Press

Jul. 27, 2006 12:00 AM

General Motors Corp. lost $3.2 billion in the second quarter because of heavy charges for layoffs and early retirements, part of its massive restructuring program. But without those charges, the world's largest automaker scored a profit that blew Wall Street away and bolstered management's claim that the turnaround is working.

GM shares rose $1.34, or 4.4 percent, to close at $32 on the New York Stock Exchange. They have traded in a 52-week range of $18.33 to $37.57.

The loss of $5.62 per share in the April-June period compared with a loss of $987 million, or $1.75 per share, for the same period last year.

Without one-time items, GM said it earned $1.2 billion, or $2.03 per share. That was significantly ahead of the 55 cents per share forecast in a survey of Thomson Financial analysts.

Revenue climbed to $54.4 billion, compared with $48.5 billion in the second quarter of 2005.

In North America, excluding special items, GM lost $85 million, $1.1 billion less than it lost in the second quarter of 2005.

"Conventional wisdom is that you can't turn a ship as big as GM around quickly," GM chairman and chief executive Rick Wagoner said in a statement. "We aim to prove that conventional wisdom wrong."

GM, which lost $10.6 billion last year, launched a major restructuring in November that called for closing 12 plants by 2008 and slashing its workforce and structural costs.

The cost of the retirement and buyout program accounted for $3.7 billion out of $4.3 billion in special charges that GM took in the second quarter.

So... how about we all meet at a Starbucks at Wall Street, gab, chat, have a meet and greet, and then grab some torches and pitchforks, ruin the place, and then head to each office building and heckle every advisor and analysts who figured that GM should be dead 3 months ago.

Honestly, I really didn't understand why people thought GM would be gone.

I can bring a couple tiki torches and an axe if need be.

So... how about we all meet at a Starbucks at Wall Street, gab, chat, have a meet and greet, and then grab some torches and pitchforks, ruin the place, and then head to each office building and heckle every advisor and analysts who figured that GM should be dead 3 months ago.

Honestly, I really didn't understand why people thought GM would be gone.

I can bring a couple tiki torches and an axe if need be.

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Because most are sheep and lemmings who can not think independently.

So... should I bring a case of whiskey to jumpstart their free will?

Those wall street analysts are clueless.

Those wall street analysts are clueless.

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They have no faith.

They have no faith.

172593[/snapback]

no, its just that they are 'followers' of whatever thinking the cool people of the moment tell them to think. and sadly, the press I think heavily influences those people.

I still am maintaining my prediction of last year ...

That GM will be @ $ 107 or better by June 2007.

...LOL, maybe I should become a wall street anal-ist !!

I made a few bets for beer on it....I can taste it already too !!!

Edited July 30, 200619 yr by MRDETROITMETAL