General Motors Co. (NYSE: GM) posted a record annual profit this morning of $7.6 billion for the fiscal year ended in December. EPS for the year totaled $4.58, up from $2.89 in the previous year. Annual revenue rose by 11% to $150.3 billion. Consensus analyst estimates called for EPS of $3.91 on revenue of $150 billion.
Those are pretty impressive numbers, but the disappointing news came on the fourth quarter numbers. Revenue in the fourth quarter totaled $38 billion, somewhat lower than the consensus estimate of $38.21 billion. EPS came in at $0.28 fully diluted, while the estimate from analysts sought EPS of $0.41. Perhaps worst, GM posted an operating loss of -$1.7 billion.
The culprit was Europe, where GM lost $562 million in the fourth quarter. The total annual loss in Europe was $747 million, indicating that things are getting worse in Europe, not better. Sales growth in the US and China made up for weakness in the rest of the world.
For 2012:
Looking forward, GM expects to increase its top-line revenue year-over-year in an expanding global automotive industry. In addition, GM expects continued pricing improvement with cost inflation well contained, while product mix and pension expense are expected to be unfavorable.
Yesterday the company announced changes to its salary and bonus structure and its pension plan. Even with those changes though, GM thinks its facing a tough year without the right products and with its pension obligations weighing on earnings.
GM’s shares are down about -2% in the pre-market at $24.50 in a 52-week range of $19.00-$36.84.
Paul Ausick
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.