General Motors Company (GM) plans to establish its base in Indonesia after quitting the market in mid-2000s, when it closed a small assembly plant near Jakarta. The Detroit-based automaker intends to make up for the sluggish sales in other markets, including the U.S. and Europe, by opening a manufacturing base as well as an export hub in the country near Jakarta that could produce about 50,000 vehicles annually.
The plant would manufacture cheap cars for export to other Southeast Asian countries, including the Philippines, Malaysia and Vietnam. With this, the company expects to strengthen its position in a market dominated by Japanese automakers.
GM has already been pursuing a major $2 billion investment plan in the U.S. The investment program targeted 17 assembly and components plants in 8 states in the U.S. Through the plan, the company aims at create or preserve more than 4,000 hourly and salaried jobs at the plants.
GM, a Zacks #3 Rank (Hold) stock posted a profit of $2.54 billion or $1.54 per share in the second quarter of the year, which almost doubled from $1.33 billion or 85 cents per share in the same quarter of 2010. With this, the automaker has beaten the Zacks Consensus Estimate by 33 cents per share.
Revenue in the quarter appreciated 19% to $39.37 billion (including $330 million from GM Financial) on worldwide sales of 2.32 million units versus 2.16 million a year ago, thereby capturing a market share of 12.2%. It also exceeded the Zacks Consensus Estimate of $36.61 billion.
The company fared well compared with its hometown rival, Ford Motor Co. (F) during the quarter under study. Ford posted a profit of $2.64 billion or 65 cents per share in the second quarter, a $67 million or 2.5% decline from $2.70 billion or 68 cents per share in the corresponding quarter of 2010. However, the company’s profits were higher than the Zacks Consensus Estimate of 60 cents per share.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment