Here are key quotes from General Motors (ticker: GM) CFO John Devine during management's Q2 2005 earnings results conference call:
On steel and oil prices
....Steel prices are stabilizing and coming down....so I'd say next year would be more flattish. Although, it's hard to call yet. We had a big debate about this yesterday, as a matter of fact. I think as additional capacity comes in place, in places like China, that could take the edge off steel prices going forward. I don't want to say the worst is behind us but my sense is it probably is this year. And it will be flat, then improve over time.
....I'd say oil prices, as they walk through raw materials, are probably the bigger issue as we looked at the commodity side today.
On its auto operations in China
....China is down, still very profitable but down from the second quarter of '04. Mix is a little weaker, selling a higher mix of smaller vehicles. Pricing has been tough and we're introducing and launching new plant....but we're still very optimistic on China.
....We see the China industry, despite the soft spot, at least soft spot for China in the last half of last year and the first half of this year, lining up about 5.9 million units for the year....profitability down from last year in China but still pretty attractive.
(Quotes are from the CCBN StreetEvents transcript.)
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