General Motor's Fourth Quarter Profits Rise
Today, General Motors Co. announced its 2012 calendar year net income has been attributed to stockholders of $4.9 billion, or $2.92 for a fully diluted share. This is down from 2011, $4.58 for a fully diluted share. The drop is mainly the result of unfavorable special items. Compared to 2011's $150.3 billion in revenue, in 2012 revenue increased one percent to $152.3 billion. Full year earnings were $7.9 billion, before tax adjustments and interest. In 2011, full year earnings were $8.3 billion. Special items impacted full year net income unfavorably at $(0.32) a share, much lower than 2011's $0.70 per share. "We recorded another solid year in 2012 as we grew the business, delivered a third straight year of profitability and took significant actions to put the company on a solid path for future growth," commented Dan Akerson, chairman and CEO. Taking a look at GM's fourth quarter, revenue increased three percent to $39.3 billion. Contributing to the increase, the net income attributable to stockholders was $0.9 billion, which included a net gain from special items of $0.1 billion. Automotive cash flow was up to $1.1 billion, and the adjusted automotive cash flow was $4.3 billion. With an automotive liquidity of $37.2 billion, GM ended the year strong. However, profits would have been higher if not for European sales. In the fourth quarter, European losses increased from $562 million in 2011 to $699 million in 2012. For the full year, European losses hit $1.80 billion, a dramatic increase from 2011's $747 million. Although losses are continuing to increase in Europe, General Motors Co. CFO Dan Ammann believes conditions will worsen this year but that GM will trim operating losses there in 2013. Source: General Motors, Automotive News
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