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
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
