Gm Posts Profits Of $865 Million In The First Quarter

By Author: Bruce Wills
Total Articles: 52
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GM posts profits of $865 million in the first quarter

Detroit based GM motors made losses in the first quarter of 2009 but after a year it has come out of the losses and the bankruptcy. The recent developments at GM helped it to strengthen its position in the market and the employees working with GM are now getting confident of their jobs prospective. The company has also started rehiring employees and it announced to open new factories in Detroit and Kansas.

The first quarterly profit posted by GM is $865 million and the report shows rebounds in sales as it came out of bankruptcy.GM filed bankruptcy during the recession which helped it to shed the liabilities and to reduce the break points. The company posted an operating income of $1.2 billion during the months of January to March and the total revenue generated was $31.5 billion which is forty percent more than previous year. The total cash flow reported during this time was $1 billion.

The company had reported approximately $6 billion of net loss a year earlier and now it is showing $1.66 profit / share. North American operation of GM made $1.2 billion ...
... of profits as compared to $3.4 billion loss of the previous year. From the international operations the company generated a profit of 1.2 billion which is $500 million more than the last quarter of the year 2009, although, GM's European operations made a loss of $500 million.

GM will soon offer shares to public but before that the company wants to make a series of profits. It informed the public offering may come in the year or in the first quarter of 2011.As the financial position of GM improved the company returned the unused government loans.

Detroit River plans reaches deadline for approval

Canada's Transport Minister, John Baird supported the construction of a bridge on the Detroit River and said the bridge will provide jobs and support Michigan's economy. He said the proposal will create 30,000 jobs on the both sides and it will have a long term effect on the economic growth of the two countries. If the construction starts now it will be completed in five years.

The cross border travel on the Detroit river accounts for 30% of the daily trade of worth $2 billion that happens between the two countries and the bridge will be jointly owned by the two countries. A public private partnership will construct the bridge and bonds will be used to finance it .The money spent on construction will be repaid through tolls.

Commuter rails between Ann Arbor and Detroit

The beginning of the commuter rail project between Ann Arbor and Detroit will be a major development which will provide immediate short term jobs to a number of jobless individuals in the state .Many construction workers and engineer were laid off during recession and they will get jobs as a rail hub will be created around the Midwest. The second advantage of the project will be the reduction in pollution caused by vehicles in the region but the supporters are finding it difficult to get the plan sanctioned due to the lack of financial support. Initially it was considered that the tax on vehicle registrations can fund the project.

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