With the jobless recovery, Michigan State financial coffers are suffering severely, as are many State citizens. And certainly, Michigan’s auto industry was just decimated by the Great Recession.
However, I think it would be wise to get an update of how Michigan Big Corps have fared very recently, so we can better assess where Michigan Big Corps stand now financially, as compared with the present financial status of Michigan citizens. By doing this, I think we can get a better insight on what should constitute a fair sharing of the financial burden to balance the State Budget between Michigan Big Corps and Michigan citizens. And frankly, Big Corps outside of Michigan, including foreign-owned Big Corps, that do business in Michigan, should also be included in this mix of a fair sharing of this very expensive financial burden to balance Michigan’s State Budget.
Let me show you below just how Michigan’s 16 largest Corps did as was disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their SEC annual report filings:
Michigan 16 Largest Publicly-Held Corps Most Recent Annual Pretax Earnings (PTI)
......................................FYE.....PTI........PTI(L).........Increase....
Michigan Big Corp.........2010...2010......2009......Amount....%..
......................................................(millions of dollars)......
Michigan's Big 2 Auto Corps
Ford(A)..........................Dec....8,002......(2,115)....10,117...478%
General Motors(B)..........Dec....5,737....(25,659)...31,396...122%
Total MI Big 2 Auto Corps.......13,739...(27,774)...41,513....149%
Michigan's 6 Auto-Related Big Corps
Ally Financial..................Dec....1,179.....(6,959).....8,138....117%
TRW Automotive.............Dec....1,041.........140.........901...644%
BorgWarner.....................Dec......478............18........460.2,556%
Lear(C).............................Dec......449........(262)........711....271%
American Axle.................Dec......119........(297)........416....140%
Visteon(D).......................Dec......109........(256)........365....143%
Total MI 6 Auto-Related Corps..3,375.....(7,616)...10,991...144%
Michigan's 2 Big Utility Corps
DTE Energy......................Dec.......950..........782.......168......21%
CMS Energy......................Dec......590...........335.......255......76%
Total MI 2 Big Utility Corps........1,540........1,117.......423......38%
Michigan's 6 Other Big Corps
Dow Chemical.................Dec......2,802.........469....2,333....497%
Kellogg...........................Dec......1,742.......1,684.........58.........3%
Stryker...........................Dec......1,730.......1,624.......106.........7%
Whirlpool.......................Dec.........586.........294........292......99%
Perrigo...........................Jun.........308.........204........104.......51%
PulteGroup(E)................Dec.......(579).....(1,412).......833.....113%
Total MI 6 Other Big Corps..........6,589......2,863.....3,726...130%
Total all 16 MI Big Corps........25,243...(31,410)...56,653...180%
(A) Ford Pretax Income(Loss) excludes large Loss on Debt Extinguishment in 2010 and also excludes huge Gain on Debt Extinguishment in 2009.
(B) General Motors Pretax Loss in 2009 excludes gigantic Reorganization Gain.
(C) Lear Pretax Loss in 2009 excludes both Reorganization Gain and Goodwill Impairment Charge.
(D) Visteon PTI(L) excludes Reorganization Gain in 2010 and also excludes Asset Impairment Charge in 2009.
(E) PulteGroup Pretax Losses exclude Goodwill Impairment Charge in both years.
When you go from a Pretax Loss of $31.4 bil to a Pretax Profit of $25.2 bil in only a span of one year, now that is what I call just an incredible profit turnaround for Big Corps in the State of Michigan.
Just look at the top half of the above schedule...the 8 Michigan Auto and Auto-Related Big Corps...and the just incredible numbers and earnings growth shown in Bold on the right side of it. The Detroit Area is now still suffering economically, but just think what the Detroit Area would be like now economically if the Obama Administration hadn't wisely taken this action.
The country should be very proud of the Obama Administration's Economic Team for its leadership and creativity in facilitating this exceptional, almost unbelievable, accomplishment, which revived the US Auto Industry from the ashes to its current robust status, where it is playing a key role in the substantial elevation of the entire US economy.
And this incredible accomplishment occurred without costing the US taxpayer a dime.
The above research, where I found 16 Michigan Big Corps, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 3 additional Michigan Big Corps, which are shown here below.
..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Additions
Michigan (3)
Credit Acceptance...............253.............229............24.....10%
Gentex................................203...............96...........107....111%
Chrysler(1).........................(513)........(8,325).......7,812.....94%
(1) Chrysler 2009 PTL excludes the following items:
.....Gain on NSC settlement
.....Gain on Daimler pension settlement
.....Restructuring income
.....Intangible asset impairment
.....Reorganization expenses-net
