General Motors Company (GM - Free Report) unveiled a state-of-the-art enterprise data center at Warren, Mich. The company invested $130 million for this data center, which will act as the computing backbone for the automaker.
Further, General Motors invest $100 million for building the second data center at Milford, Mich. With the two new data centers, the company will be replacing the 23 data centers and three information technology suppliers around the world.
It is anticipated that the construction of the Milford center will commence this summer and will be operational Jul 2014 onwards. With these two centers, General Motors plans to create a secure, private cloud that allows super-computer applications, servers and data storage to be efficiently and rapidly used among multiple users.
General Motors intend to build the second center in Milford as it is closer to the one in Warren, which has mirrored data. If one of the centers is off line, the other will have the same data available without interruption. The Milford center will have IT equipment worth around $158 million.
General Motors is a leading global automotive company. The company has presence in almost 120 countries and has facilities located in 30 countries. It currently carries a Zacks Rank #3 (Hold).
General Motors reported a 28.0% fall in earnings to 67 cents per share in the first quarter of the year from 93 cents in the same quarter of 2012 (all excluding special items) due to lower revenues generated from all of the company’s geographic operations except Europe. Despite this, the automaker’s earnings exceeded the Zacks Consensus Estimate by 11 cents per share.
Revenues in the quarter slid 2.4% to $36.9 billion, despite a 3.6% rise in retail unit sales to 2.4 million vehicles globally. This was higher than the Zacks Consensus Estimate of $36.4 billion.
Few stocks that are performing well in the broader industry include Visteon Corp. (VC - Free Report) , STRATTEC Security Corporation and Denso Corp. (DNZOY - Free Report) . All the stocks carry a Zacks Rank #1 (Strong Buy).