General Motors today reported its earnings for last year and the fourth fiscal quarter of 2011. The automaker's profits for 2011 totaled $7.6 billion, up from $4.7 billion in 2010.

While the news was excellent for the full year, fourth quarter net income was only $472 million, or about the same as Q4 2010. While that makes eight straight quarters of positive numbers since the company emerged from bankruptcy in 2009, the earnings were weighed down by losses of $562 million in Europe from GM's Opel subsidiary.

There were also a number of one-time events that affected earnings in the fourth quarter, without which GM's profit would've nearly doubled to $900 million.

Still, the company counts 2011 as a successful year, and the stats tend to agree. TrueCar.com reports that GM increased its sales by over 13 percent, increased market share by half a point, grew average transaction prices by over $1,100 and lowered incentive spending by five percent. Based on that performance, all 47,500 hourly employees will receive profit sharing checks of up to $7,000. Check out The General's official press release after the jump.
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GM Reports 2011 Net Income of $7.6 Billion

2012-02-16

Full-year EBIT-adjusted of $8.3 billion, up $1.3 billion from 2010
Fourth quarter net income of $0.5 billion and EBIT-adjusted of $1.1 billion


DETROIT – General Motors Co. (NYSE: GM) today announced 2011 calendar-year net income attributable to common stockholders of $7.6 billion, or $4.58 per fully diluted share, up from $4.7 billion, or $2.89 per fully diluted share, in 2010.

Revenue increased 11 percent to $150.3 billion, compared with $135.6 billion in 2010. Full-year earnings before interest and tax (EBIT) adjusted was $8.3 billion, compared with $7.0 billion in 2010.

"In our first full year as a public company, we grew the top and bottom lines, advanced our global market share and made strategic investments in our brands around the world," said Dan Akerson, chairman and CEO. "We will build on these results as we bring more new cars, crossovers and trucks to market, and make GM a far more efficient global team. This includes reducing our break-even level in Europe and South America and driving higher revenues around the world."



Fourth Quarter Results

Revenue in the fourth quarter of 2011 increased 3 percent to $38.0 billion, compared with the fourth quarter of 2010. GM's fourth quarter 2011 net income attributable to common stockholders was $0.5 billion, or $0.28 per fully diluted share, including a net loss from special items of $0.2 billion or $0.11 per fully diluted share.

In the fourth quarter of 2010, GM's net income attributable to common stockholders was $0.5 billion, or $0.31 per fully diluted share, including a net loss from special items of $0.4 billion or $0.21 per fully diluted share.

EBIT-adjusted was $1.1 billion in the fourth quarter of 2011, compared with $1.0 billion in the fourth quarter of 2010. Fourth quarter EBIT-adjusted for 2011 includes the impact of restructuring charges of $0.3 billion.

GM's fourth quarter 2011 special items include impairment charges related to goodwill and GM's investment in Ally Financial, and gains related to the Canadian Health Care Trust (HCT) settlement, the reversal of deferred tax asset valuation allowances in Australia and the extinguishment of debt.

Regional Results

GM North America (GMNA) reported EBIT-adjusted of $1.5 billion in the fourth quarter of 2011 compared with $0.8 billion in 2010. Full-year EBIT-adjusted was $7.2 billion in 2011 compared with $5.7 billion in 2010. Based on GMNA's 2011 financial performance, the company will pay profit sharing of up to $7,000 to approximately 47,500 eligible GM U.S. hourly employees. The full payout will be paid to employees who had 1,850 or more compensated hours in 2011.

GM Europe (GME) reported an EBIT-adjusted loss of $0.6 billion in the fourth quarter of 2011, including $0.2 billion of restructuring costs, matching last year's results. Full-year EBIT-adjusted was a loss of $0.7 billion in 2011, an improvement of $1.3 billion over 2010.

GM International Operations (GMIO) reported EBIT-adjusted of $0.4 billion in the fourth quarter of 2011 compared with $0.3 billion in 2010. Full-year EBIT-adjusted was $1.9 billion in 2011 compared with $2.3 billion in 2010.

GM South America (GMSA) reported an EBIT-adjusted loss of $0.2 billion in the fourth quarter of 2011, including $0.1 billion in restructuring costs, compared with EBIT-adjusted of $0.2 billion in 2010. Full-year EBIT-adjusted was a loss of $0.1 billion in 2011 compared with EBIT-adjusted of $0.8 billion in 2010.

Cash Flow and Liquidity

For the fourth quarter of 2011, automotive cash flow from operating activities was $1.2 billion and automotive free cash flow was $(0.9) billion, which includes the previously announced $0.8 billion contribution to the HCT.

GM ended the year with strong total automotive liquidity of $37.5 billion compared with $33.5 billion in 2010. Automotive cash and marketable securities was $31.6 billion compared with $27.6 billion at the end of 2010.

U.S. Pension Update

GM's U.S. defined benefit pension plans earned asset returns of 11.1 percent in 2011. They ended the year 88 percent funded, largely unchanged from 89 percent funded a year ago.

The company also announced today that it is taking further steps toward its goals of de-risking and fully funding its U.S. pension plans. Effective Sept. 30, 2012, GM will freeze its defined benefit pension plan for U.S. salaried employees, who instead will receive contributions to a defined contribution plan, or 401(k). This initiative will affect GM's U.S. salaried employees hired prior to Jan. 1, 2001. Salaried employees hired after that date are already covered by a defined contribution plan.

2012 Outlook

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.

Capital spending in 2012 is expected to be in the range of $8 billion as the company continues to aggressively invest in new products and technologies.

"We are executing an aggressive product plan that will give customers around the world even more reasons to purchase a General Motors vehicle," said Dan Ammann, senior vice president and CFO. "Behind the scenes, we are working hard to eliminate complexity and cost throughout the organization to increase margins in all of our regions, and return Europe and South America to profitability. Overall, we have made good progress and we have more work to do."

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM's brands include Chevrolet and Cadillac, as well as Baojun, Buick, GMC, Holden, Isuzu, Daewoo, Jiefang, Opel, Vauxhall and Wuling. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.


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      • 2 Years Ago
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      xtabay1
      • 2 Years Ago
      OMG people, let it go. LET IT GO. No one 'stole' your tax dollars. You don't own your tax dollars. Your taxes are what YOU owe to the government. Now....I can't for the life of me understand WHY you are all so bothered that our government helped out fellow citizens and fellow taxpayers by helping out General Motors and saving jobs and that General Motors is now doing well. It was a smart bet that worked. The money our government pays to oil companies as subsidies while oil companies are reaping some of the largest profits EVER...now THAT perhaps is government money not so well spent, and would be something valid to complain about ..... But the GM bailout?!? get over it.
        the.nope
        • 2 Years Ago
        @xtabay1
        Thank you some one understands it. If not for the bailout how many more jobs could have been lost?? how worse would the economy be?
        Bret Frohwein
        • 2 Years Ago
        @xtabay1
        Thank you..
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        @xtabay1
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          hudkina
          • 2 Years Ago
          The money provided to the auto industry was around $90 billion, but it is estimated that the government will only lose about $14 billion, though it might not even lose that much. In any case, if Republicans were truly hawkish about what the government *spends* its money on, then maybe it should start worrying about handing out billions in tax credits every year. The Republicans don't car about a balanced budget. They only care about destroying the UAW and keeping corporations from paying their fair share of taxes.
      CBJMNWLD
      • 2 Years Ago
      Anti-GM/Anti-Obama comments in 3-2-1.... "I hate GM they took the bailout and Obama balh blah blah blah crappy product blah blah and would never buy blah blah blah look at Chrysler blah blah blah I drive Ford blah blah blah.... "
      jesscott
      • 2 Years Ago
      YEAH BABY. Hey, can the government come erase all my debt from years of bad management too? Then I could be profitable. No worries though, I am sure with the unions at the helm GM will remain profitable for 3 or 4 years to come. What's the GM stock price anyway? Oh that's right 10 bucks below it's IPO.
        Mr Clickerson
        • 2 Years Ago
        @jesscott
        ^^^Another D-bag worried about his 136 dollars.
          Mr Clickerson
          • 2 Years Ago
          @Mr Clickerson
          What, are you living off your mother's allowance or something? Unless you're jobless, you have nothing to complain about because your money helped save jobs and turn around the biggest player in our biggest industry. No matter how you look at it, it was a necessary evil, and b****ing and moaning about the past isn't going to get you your precious, insignificant amount of money back.
          DrEvil
          • 2 Years Ago
          @Mr Clickerson
          Hey Urch.. I'll give you back your $136, Just don't ever let me catch you using any public utilities that are supported by my tax $$$ Airports, Railways, roadways, GPS systems, Internet etc. etc. How come I don't see you going after the banks, they are the bloody thieves in our midst.
          • 2 Years Ago
          @Mr Clickerson
          [blocked]
        axiomatik
        • 2 Years Ago
        @jesscott
        @jesscott umm, you do have that opportunity. It is called personal bankruptcy.
      Bob
      • 2 Years Ago
      Instead of handing out 7 grand in bonuses to 48,000 employees, why not, oh, I don't know, USE THAT MONEY TO PAY BACK SOME OF YOUR LOANS TO THE TAXPAYERS THAT SAVED YOUR JOBS IN THE FIRST PLACE??? You should be congratulated that your company is now profitable, yes, but that doesn't entitle you to a bonus when you still need to repay the government and taxpayers that saved your bacon in the first place. Just be grateful that you have a job, keep doing what you're doing, and when your debts are all paid off and if you can afford it, then yeah, bonuses are fine.
        • 2 Years Ago
        @Bob
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        • 2 Years Ago
        @Bob
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        Thipps
        • 2 Years Ago
        @Bob
        I believe they paid off their "loans" but the gov owns a majority of their stock. the gov needs to dump their stock ASAP to get completely out of GM
      v6sonoma
      • 2 Years Ago
      I'm happy to see they are doing well. It boggles my mind why people would rather see them fail. Yes they got help. Yes they screwed up. No they are not perfect. If it was you child in drug rehab would hope they relapse and die from an overdose? I hope not.
        • 2 Years Ago
        @v6sonoma
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          Alex Garrett
          • 2 Years Ago
          Dude, do you not have a job??????? You must be also be a troll at work if you do......
      tigersharkjr
      • 2 Years Ago
      I lost 88k bucks when GM went under. I seriously dont get how some of you are so pissed they are making money and are successful now. The free market doesnt exist in the real world. Ask the Germans and Japanese car makers if their governments dont help them out MUCH more than what we did with Detroit. For those of you angry that about fifty ten cents of your tax money went to GM, buck up and put your big boy pants on. Thats business.
      • 2 Years Ago
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        caddy-v
        • 2 Years Ago
        Seeing as how you're the most ret-rded commenter, you go first.
      • 2 Years Ago
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      Evan
      • 2 Years Ago
      We made $7.6 billion last year and we want everyone to know it! We also won't be paying any taxes on that or any other profits for the next 20 years because of our $45 billion tax break! Oh, wait - forget that last part.
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