Monday, January 5, 2015

Detroit Area Companies Audited Profits Were $81.5 bil in 3 Years 2011 Through 2013 vs Losses of $155.2 bil in 3 Years 2007 Through 2009 ..... Three-Year Earnings Improvement of a Massive $236.7 bil

From a thorough review of SEC filings and the use of the excellent Google Finance Website, I found 59 Michigan Headquartered Companies with Stock Market Capitalizations now of at least $100 mil and with annual audited financial statements filed with the SEC covering all years from 2007 to 2013.

Of these 59 Michigan Companies, 41 of them are headquartered in the Detroit/Ann Arbor/Flint Metro Area and the other 18 of them are headquartered in the rest of Michigan.

The Total Audited Net Income from Continuing Operations of these 41 Detroit Metro Area Companies for the 3 Most Recent Years 2011 through 2013 totaled $81.522 bil vs Total Audited Net Losses from Continuing Operations for the 3 Years 2007 through 2009 of a devastating $155.175 bil.

Thus the Total Three-Year Earnings Improvement from 2007-2009 to 2011-2013 was a massive $236.697 bil for these 41 Detroit Metro Area Companies.

The drivers of this massive earnings recovery were Companies in the Auto Industry, with $200 bil of the $237 bil Total Three-Year Earnings Improvement, or a huge 84% of it, being the Big Three:
  • General Motors + $117 bil
  • Ford Motor         + $48 bil 
  • Chrysler                  + 35 bil
  • Big 3 Total =     + $200 bil
This incredibly off-the-charts earnings resurrection for these 41 Detroit Metro Area Companies from 2007-2009 to 2011-2013 occurred entirely during the Obama Administration.

Below here are the Audited Net Income (Losses) of each of these 59 Michigan Companies for each of the following six years: 2013, 2012, 2011, 2009, 2008 and 2007:
2013 2012 2011 2009 2008 2007



Audited Audited Audited Audited Audited Audited

Most Net Net Net Net Net Net

Recent Income Income Income Income Income Income
Michigan Company HQs FYE (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)

 $ mils  $ mils  $ mils  $ mils  $ mils  $ mils
Detroit Metro Area Companies







Ford Motor Dearborn Dec 13            7,148         5,664       20,222         2,712    (14,833)       (2,819)
General Motors Detroit Dec 13            5,331         6,136         9,287    (22,938)    (31,051)    (42,685)
FCA US LLC (Chrysler Group LLC) Auburn Hills Dec 13            2,757         1,668             183       (8,210)    (16,844)       (5,041)
PulteGroup Bloomfield Hills Dec 13            2,620             206          (210)       (1,183)       (1,473)       (2,274)
Delphi Automotive PLC Troy Dec 13            1,301         1,160         1,223          (822)       (1,984)       (1,692)
TRW Automotive Livonia Dec 13            1,007         1,041         1,195               73          (764)             109
Visteon Corp Van Buren Township Dec 13                775             170             210             184          (647)          (305)
WABCO Holdings Rochester  Hills Dec 13                662             313             368               24             216             128
BorgWarner Auburn Hills Dec 13                651             522             571               36             (19)             317
Lear Corp Southfield Dec 13                456         1,317             570          (648)          (664)             267
Ally Financial Detroit Dec 13                416         1,370          (219)       (3,370)         4,863       (1,950)
Masco Taylor Dec 13                323             (18)          (352)          (102)          (327)             539
Flagstar Bancorp Troy Dec 13                267               68          (182)          (497)          (275)             (39)
Credit Acceptance Corp Southfield Dec 13                253             220             188             146               67               54
Penske Automotive Group Bloomfield Hills Dec 13                251             196             176               84          (411)             121
Syntel Troy Dec 13                220             186             123             118               87               63
Taubman Centers Bloomfield Hills Dec 13                189             158             141             (79)               (8)             116
Domino's Pizza Ann Arbor Dec 13                143             112             105               38               54               80
Valassis Communications Livonia Dec 12                119             113             385               67          (210)               52
Federal-Mogul Southfield Dec 13                101             (91)             (56)             (33)          (465)         1,408
Con-Way Ann Arbor Dec 13                  99             105               88          (108)               65             154
American Axle Detroit Dec 13                  95             367             137          (253)       (1,225)               37
TriMas Corp Bloomfield Hills Dec 13                  79               36               51               13          (124)          (162)
La-Z-Boy Monroe Apr 14                  60               47               84               32          (122)               (8)
Kelly Services Troy Dec 13                  59               50               65          (105)             (82)               54
Universal Truckload Services Warren Dec 13                  51               48               51                 5               15               18
Cooper-Standard Holdings Novi Dec 13                  45               99               76          (356)          (123)          (150)
Compuware Detroit Mar 14                  38               25               63             141             140             134
Gentherm Northville Dec 13                  35               24               11                 0                 4                 7
MBT Financial Monroe Dec 13                  26                 9               (4)             (34)                 2                 8
Rofin-Sinar Technologies Plymouth Sep 14                  25               35               35               30               10               64
Sun Communities Southfield Dec 13                  20                 8               (1)               (7)             (28)             (18)
Agree Realty  Farmington Hills Dec 13                  19               14               14               18               16               17
Saga Communications Grosse Pointe Farms Dec 13                  15               18               13               (3)             (66)               11
United Bancorp Ann Arbor Dec 13                     9                 4                 1               (9)               (0)                 6
Ramco-Gershenson Properties Trust Farmington Hills Dec 13                     8                 7             (29)               13               27               45
Synthetic Biologics Ann Arbor Dec 13                (12)             (17)               (8)               (4)               (7)             (10)
Tower International Livonia Dec 13                (16)               (5)             (25)             (59)             (46)             (82)
Meritor Inc Troy Sep 13                (20)               63               80               12          (738)             (46)
Rockwell Medical Wixom Dec 13                (49)             (54)             (21)               (6)               (8)               (4)
Meadowbrook Insurance Group Southfield Dec 13              (112)               12               43               53             278               28









Total all 41 Detroit Metro Area Companies
         25,464       21,406       34,652    (35,027)    (66,700)    (53,448)









Annual Earnings (Losses)







…..2013, 2012 and 2011 Combined              81,522
   




…..2009, 2008 and 2007 Combined            (155,175)
   




…..Three-Year Earnings Improvement             236,697
   













Rest of Michigan Companies







Dow Chemical Midland Dec 13            4,816         1,100         2,784             566             626         2,962
Kellogg Battle Creek Dec 13            1,808             961             864         1,208         1,146         1,102
Stryker Kalamazoo Dec 13            1,006         1,298         1,345         1,107         1,148             987
Whirlpool Benton Harbor Dec 13                849             425             408             354             447             669
Gentex Zeeland Dec 13                223             169             165               65               62             122
Perrigo Allegan Jun 14                205             442             393             224             141             140
Wolverine World Wide Rockford Dec 13                101               81             123               62               96               93
Steelcase Grand Rapids Feb 14                  88               39               57             (14)             (12)             133
Independent Bank Ionia Dec 13                  78               26             (20)             (90)             (92)               10
Chemical Financial Midland Dec 13                  57               51               43               10               20               39
Universal Forest Products Grand Rapids Dec 13                  46               26                 6               25                 5               23
Neogen Lansing May 14                  28               27               22               18               14               12
SpartanNash Grand Rapids  Mar 13                  28               32               33               35               31               24
Mercantile Bank Grand Rapids Dec 13                  17               13               37             (52)               (5)                 9
Firstbank Alma Dec 13                  12               11                 6                 3                 1                 8
Macatawa Bank Holland Dec 13                  10               35                 6             (64)             (39)                 9
Spartan Motors Charlotte Dec 13                  (6)               (2)                 1               12               43               25
Miller Herman Zeeland May 14                (22)               68               75               28               68             152









Total all 18 Rest of Michigan Companies
           9,344         4,802         6,348         3,497         3,700         6,519

It should be pointed out that the Audited Earnings amounts for 2011 for both Ford Motor and General Motors are so much higher than that for 2012 and 2013 because of the large one-time income tax benefits increasing 2011 Audited Earnings.

When you review the above massive earnings recovery amounts for the Detroit Area Companies, I think the question that clearly comes up top of mind is this one ..... Has there really been a fair sharing of this remarkable economic turnaround in the Detroit Metro Area between the common stockholders of these Companies and the Detroit Metro Area Citizenry?



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