March 29, 2024

G.M. Says Weakness in Asia Leads to Drop in Profit

G.M. said it earned $1.2 billion in the quarter, compared with $1.49 billion in the same period a year ago, although it narrowed its losses considerably in Europe, where weak economic conditions have driven new-car sales to their lowest levels since the 1990s.

The company said that its global revenue was up 4 percent to $39 billion, and that worldwide vehicle sales, including joint ventures, increased 4 percent to 2.49 million.

In North America, G.M. benefited from new products and a steadily improving market for new cars and trucks.

The company said it earned $1.97 billion in pretax income in the region during the quarter, a 4 percent gain from $1.89 billion a year ago.

G.M. said it had a pretax lost of $110 million in Europe, compared with a loss of $394 million in the same period in 2012.

Its performance in Asia declined, however. General Motors said that it earned a pretax profit of $228 million in the region, a 63 percent decrease from $627 million a year ago.

South American results improved to a $54 million pretax profit, compared to $16 million a year ago.

G.M.’s chief executive, Daniel F. Akerson, said the automaker is making progress in Europe, where it has lost money for more than a decade. The company has revamped its European management team with outside hires and stepped up new products in the region.

The company is also trying to increase the presence of its two best-known American brands, Chevrolet and Cadillac, in other parts of the world.

“We continue to perform well in the two most important markets, the U.S. and China,” Mr. Akerson said in a statement. “We also made progress in our European business and saw the steady performance of our global brands, Chevrolet and Cadillac.”

While G.M. continued to grow in China, it faced increased competition and pricing pressure from Japanese automakers in other Asian markets as well as Australia.

G.M. said its market share in North America dropped slightly to 17.3 percent, down from 17.4 percent last year.

Its global market share also slipped to 11.5 percent, compared to 11.6 percent in the second quarter of 2012.

The company increased vehicle sales in every region other than Europe, where sales fell about 7 percent during the quarter.

Article source: http://www.nytimes.com/2013/07/26/business/gm-says-weakness-in-asia-leads-to-drop-in-profit.html?partner=rss&emc=rss

DealBook: Carlyle Files for an I.P.O.

David Rubenstein, co-founder of the Carlyle Group.Jonathan Alcorn/Bloomberg NewsDavid Rubenstein, co-founder of the Carlyle Group.

The Carlyle Group officially wants to join the exclusive club of publicly traded private equity giants.

Carlyle filed for an initial public offering on Tuesday, a long-awaited development that will finally shed light on the investment firm’s business.

The securities filing listed a provisional fund-raising target of $100 million, which is likely to change over time. That number is used to calculate the registration fee.

Founded in 1987, the Washington-based firm manages $153 billion in assets across 86 funds and 49 fund of funds, according to the filing. It employs more than 1,100.

The firm reported $2.8 billion in revenue last year and $1.5 billion in net income attributable to Carlyle. Using economic net income, a pro forma accounting figure preferred by private equity firms, Carlyle earned just over $1 billion.

By comparison, the Blackstone Group, one of Carlyle’s biggest competitors, reported $3.1 billion in revenue and $485.5 million in economic net income last year.

Like other private equity firms, Carlyle has benefited from improving market conditions and low interest rates. The company reported a 172 percent increase in revenue for the first six months of the year, to $447.2 million.

Its revenue from management fees has grown 16 percent thanks to several fund acquisitions, while its performance fees have jumped an astounding 971 percent because the value of its investments has improved.

The firm also confirmed that it has reorganized its corporate structure, to reflect its transition from a private partnership to a public company. Its three cofounders will remain at the top: Daniel A. D’Aniello will become the firm’s chairman, while David M. Rubenstein and William E. Conway Jr. will become co-chief executives.

Carlyle’s public offering will also allow the firm’s current stakeholders to cash out, including its cofounders and senior executives. Mubadala, an investment arm of Abu Dhabi, purchased a 7.5 percent stake in 2007 and made an additional $500 million investment late last year. And the giant California pension fund Calpers has owned at least a 5.5 percent stake in the firm for several years.

The firm’s offering will be led by JPMorgan Chase, Citigroup and Credit Suisse.

Article source: http://feeds.nytimes.com/click.phdo?i=2580fddbc2771e47bd61551020be0842