GM and Ford are prepared to present the results of the first quarter

General Motors (GM) and Ford are preparing to unveil this Thursday and Friday its financial results for the first quarter, which will possible reflect the improvement of the economic situation in Europe.

Analysts expect the results of General Motors, the top U.S. automaker, will worsen over the same period of 2013 and the last quarter of last year, when the company reported earnings per share of $ 0.67.

In the first quarter of 2013, GM had net profit of $ 865 million, 13.8% less than in 2012, after entering 36.900 million during that period.

According to Earningsource.com, analysts expect GM to announce net income per share of $ 0.23 tomorrow and results negatively affected by the recall of more than 6 million vehicles since early this year, including 2.6 million by a defect in the ignition system.

GM has already announced that the first quarter results include a charge of $ 300 million related to the recall of the vehicles due to the defect in the ignition system.

But analysts predict that for all 6 million defective vehicles, the manufacturer faces a bill of more than 1,000 million dollars included in the results of the first quarter of 2014.

The figures for the quarter also include the result of the devaluation of the Venezuelan currency $ 400 million and production problems that automakers are suffering in the South American country.

In Europe, GM also faces a hefty bill by the end of the German Opel plant in the city of Bochum and manufacturer executives are estimated at 1,100 million, although the company only recorded a fraction of the cost for the first quarter.

On the positive side, global GM car sales increased between January and March.

On April 17, GM said its sales for the period increased 2 % compared to the same quarter of 2013 and amounted to 2,416,028 units thanks to strong demand in China and Europe.

With regard to the Old Continent last week GM Chief Dan Ammann, was optimistic, stating that sales and economic outlook ” are improving in parallel.”

Ford is also noting the improved situation in Europe, which will be reflected in the financial results for the first quarter, to be presented on April 25.

Mid-month, the second U.S. automaker said sales were up 11%, the fourth consecutive quarter of increases in sales for Ford. The manufacturer also increased its market share from 7.7% to 8% market.

In North America, Ford ‘s most profitable market, the company has had mixed results during the quarter, with sales losses in January and February by the harsh weather conditions this winter in the U.S., but increases in March.

Like GM, Ford is also being affected by the situation in Venezuela. The manufacturer has already announced it will take a charge of about $ 350 million in the first quarter by the devaluation of the Venezuelan Bolivar and the halt of production at its plant in Valencia.

But analysts expect Ford to annouce a whole another quarter of significant gains that will allow you to meet its stated end the year with a profit before tax of between 7,000 and 8,000 million goal.

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Posted by Abdul Basit Abbasi on Apr 24 2014. Filed under Automobiles, Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.