Sign in to comment!

Menu
Home

Industries

GM Posts 4Q EPS Miss as Europe Trouble Persists

General Motors Assembly Line Cars

General Motors Assembly Line (Reuters)

General Motors (GM) logged weaker-than-expected fourth-quarter profits on Thursday as the auto maker lost market share and continued to stumble in Europe.

Shares of the largest U.S. auto maker ticked about 2% higher despite the earnings miss.  

GM posted net income of $892 million, or 54 cents a share, last quarter, compared with a profit of $472 million, or 28 cents a share, a year earlier.

Excluding one-time items, it earned 48 cents a share, lagging three cents behind the Street’s view.

Revenue rose 3% to $39.3 billion, narrowly topping estimates from analysts for $39.15 billion.

GM said its global market share dipped to 11.5% from 11.6% the year before, highlighted by a slide in the U.S. to 17.1% from 18%.

“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,” CEO Dan Akerson said in a statement.

Despite the progress, GM continues to struggle in Europe, where it suffered an adjusted loss of $699 million in the fourth quarter, compared with a loss of $562 million the year before.

Profits in North America fell 6.8% to $1.4 billion, while South America swung to a profit of $99 million from a loss of $225 million. GM’s international operations division generated a 26.8% jump in profits to $473 million.

On its balance sheet, GM ended 2012 with automotive liquidity of $37.2 billion, up from $37 billion the year before. Automotive cash and marketable securities stood at $26.1 billion, down from $31.6 billion at the end of 2011.

GM’s fourth quarter included a number of one-time items, including a cash charge of $26 billion for goodwill and a gain of $34.9 billion on valuation allowances on U.S. and Canada deferred tax assets.

Shares of Detroit-based GM rallied 1.6% to $29.15 Thursday morning, leaving them up about 1% on the year.

Follow Matt Egan on Twitter @MattMEgan5