GM reports lower-than-expected 4Q earnings - New York News

GM reports lower-than-expected 4Q earnings

Posted: Updated:

DETROIT (AP) -- General Motors' fourth-quarter profit rose 2 percent from a year ago, but the company fell short of Wall Street expectations as it spent heavily to restructure outside the U.S.

GM rode record North American earnings to a profit of $913 million, or 57 cents per share. That compares with $892 million, or 54 cents per share, a year ago. Revenue rose 3 percent to $40.5 billion.

Excluding one-time items, including a $700 million charge to exit the Chevrolet brand in Europe, GM made 67 cents per share. But analysts polled by FactSet expected 88 cents on revenue of $40.8 billion.

New CEO Mary Barra said GM's restructuring actions will strengthen the company for the future. New Chief Financial Officer Chuck Stevens said Wall Street analysts "didn't comprehend that restructuring." Much of the restructuring costs were for employee severance expenses.

For the full year, GM's earnings fell 22 percent to $3.8 billion or $2.38 per share. Without one-time items, including $800 million in impairment charges, it earned $3.18 per share.

GM also announced that 48,500 U.S. hourly workers will get up to $7,500 in profit-sharing checks.

Shares fell 4 percent to $33.83 in premarket trading.

In North America, GM made $1.9 billion in the quarter before taxes and a record $7.5 billion pretax for the full year. Stevens said the company's four brands gained market share in retail sales to individual customers, and its transaction prices rose. The company recently has lost pickup truck sales to competitors Ford and Chrysler, which have raised discounts. But Stevens said GM will stick with its approach of selling cars and trucks on value rather than price.

"What we want is profitable growth," he said.

In Europe, the world's second-largest automaker lost $800 million for the full year, but that was less than half of the $1.9 billion it lost in 2012. GM lost $300 million in the struggling region in the fourth quarter, compared with an $800 million loss in 2012.

But outside North America and Europe, GM's results were weaker than a year ago.

GM earned $1.2 billion in its international operations, which include Asia, for the full year, down by more than half from $2.5 billion the prior year. GM's international operations earned $200 million in the fourth quarter, down from $700 million in 2012.

GM's operating profits also fell in South America, where it earned $300 million for the full year, down from $500 million in 2012. Fourth quarter earnings were flat, compared with a $100 million profit in 2012.

  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • Local NewsLocal NewsMore>>

  • Temperature drops; snow moves in

    Temperature drops; snow moves in

    Tuesday, April 15 2014 10:59 PM EDT2014-04-16 02:59:53 GMT
    Fox 5 photoFox 5 photo
    The mild weather made an exit in the Tristate region and snow moved in late Tuesday into Wednesday. Scattered showers, heavier rain, thunderstorms, and strong winds were expected. Reports of heavy, wet snow have come in from the Hudson Valley, northern New Jersey and New York City. The snow is not expected to accumulate for very long.
    The mild weather made an exit in the Tristate region and snow moved in late Tuesday into Wednesday. Scattered showers, heavier rain, thunderstorms, and strong winds were expected. Reports of heavy, wet snow have come in from the Hudson Valley, northern New Jersey and New York City. The snow is not expected to accumulate for very long.
  • Robert De Niro says Tribeca Film Festival is his passion

    Robert De Niro says Tribeca Film Festival is his passion

    Tuesday, April 15 2014 10:47 PM EDT2014-04-16 02:47:46 GMT
    Robert De Niro is a family man, a filmmaker, an entrepreneur and one of my favorite actors of all time. He's also a co-founder of the Tribeca Film Festival, which has more to see than ever before. De Niro wears just as many hats on screen as he does in real life. The father of six starred in six films last year, owns four restaurants and a hotel, and still finds time each spring for the Tribeca Film Festival, Lower Manhattan's annual cinematic showcase.
    Robert De Niro is a family man, a filmmaker, an entrepreneur and one of my favorite actors of all time. He's also a co-founder of the Tribeca Film Festival, which has more to see than ever before. De Niro wears just as many hats on screen as he does in real life. The father of six starred in six films last year, owns four restaurants and a hotel, and still finds time each spring for the Tribeca Film Festival, Lower Manhattan's annual cinematic showcase.
  • Obama congratulates UConn on NCAA dominance

    Obama congratulates UConn on NCAA dominance

    Tuesday, April 15 2014 9:47 PM EDT2014-04-16 01:47:07 GMT
    President Barack Obama has congratulated the University of Connecticut's men's and women's basketball teams on winning last week's NCAA tournaments. The White House says Obama commended men's head coach Kevin Ollie and his team on their decisive championship victory and noted how he enjoyed watching them throughout the tournament. He told women's head coach Geno Auriemma how impressive it was to see the team continue to dominate women's collegiate basketball.
    President Barack Obama has congratulated the University of Connecticut's men's and women's basketball teams on winning last week's NCAA tournaments. The White House says Obama commended men's head coach Kevin Ollie and his team on their decisive championship victory and noted how he enjoyed watching them throughout the tournament. He told women's head coach Geno Auriemma how impressive it was to see the team continue to dominate women's collegiate basketball.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices