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General Motors released a statement about its income for the 2012 calendar year today, reporting a net income of $4.9 billion and an earnings before interest and tax (EBIT) figure of some $7.9 billion. Per share that breaks down to $2.92, versus net income of $4.58 per share last year. These numbers are in contrast to the automaker's revenue figures, which rose in 2012 to $152.3 billion from $150.3 billion in 2011.

GM calls out the discrepancy of revenue to income, saying that it is "primarily" due to "unfavorable special items," as well as hits taken in the slumping European markets.

The special items portion is where the story gets a little bit confusing. The company says that $0.5 billion worth of special items negatively impacted income this year. Numbered among those items are -$26.2 billon non-cash good will impairment charge (this occurs when a company buys something large for more than its "book value"), $2.2 billion added to the US salaried pension plan, and a -$5.2 billion "non-cash impairment" of GM Europe Assets.

Even with that half-billion accounted for the remaining $2.2 billion difference in this year's income versus 2011 could speak to operating costs that are trending in the wrong direction.

Still, CEO Dan Akerson is bullish about the coming year saying, "Our priorities will be executing flawless new vehicle launches, controlling costs and delivering more vehicles to our customers at outstanding value." Feel free to scroll down to take in the whole of GM's rather impenetrable press release.
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GM Reports 2012 Net Income of $4.9 Billion
Full-year EBIT-adjusted of $7.9 billion


2013-02-14

- Company posts third consecutive year of strong earnings

- Fourth quarter net income of $0.9 billion, up from $0.5 billion last year

- EBIT-adjusted of $1.2 billion in the fourth quarter, up from $1.1 billion last year

DETROIT – General Motors Co. (NYSE: GM) today announced 2012 calendar-year net income attributable to common stockholders of $4.9 billion, or $2.92 per fully diluted share, down from $7.6 billion, or $4.58 per fully diluted share in 2011, due primarily to unfavorable special items.

Special items during the calendar year impacted full-year net income to common stockholders unfavorably, $(0.5) billion, or $(0.32) per share, compared to a favorable $1.2 billion impact in 2011, or $0.70 per share.

Revenue increased 1 percent to $152.3 billion, compared with $150.3 billion in 2011. Full-year earnings before interest and tax (EBIT) adjusted was $7.9 billion, compared with $8.3 billion in 2011. Full-year EBIT-adjusted for 2012 includes the impact of restructuring charges of $(0.4) billion.

"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," said Dan Akerson, chairman and CEO. "This year our priorities will be executing flawless new vehicle launches, controlling costs and delivering more vehicles to our customers at outstanding value."

Overview (in billions except for per share amounts)

Q4 2011

Q4 2012

Full-year 2011

Full-year 2012

Revenue

$38.0

$39.3

$150.3

$152.3

Net income attributable to common stockholders

$0.5

$0.9

$7.6

$4.9

Earnings per share
(EPS) fully diluted

$0.28

$0.54

$4.58

$2.92

Impact of special items on EPS fully diluted

$(0.11)

$0.06

$0.70

$(0.32)

EBIT-adjusted

$1.1

$1.2

$8.3

$7.9

Automotive net cash flow from operating activities

$1.2

$0.5

$7.4

$9.6

Adjusted automotive
free cash flow

($0.2)

$1.1

$3.0

$4.3


Revenue in the fourth quarter of 2012 increased 3 percent to $39.3 billion, compared with the fourth quarter of 2011. GM's fourth quarter 2012 net income attributable to common stockholders was $0.9 billion, or $0.54 per fully diluted share, including a net gain from special items of $0.1 billion or $0.06 per fully diluted share.

In the fourth quarter of 2011, GM's 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.

EBIT-adjusted was $1.2 billion in the fourth quarter of 2012, compared with $1.1 billion in the fourth quarter of 2011. Fourth quarter EBIT-adjusted for 2012 includes the impact of restructuring charges of $(0.2) billion.

GM's fourth quarter 2012 special items impact to net income of $0.1 billion includes a $34.9 billion non-cash benefit from the release of the majority of the company's valuation allowances on U.S. and Canada deferred tax assets and an associated $(26.2) billion non-cash goodwill impairment charge; a $(5.2) billion non-cash impairment of GM Europe long-lived assets; and a $(2.2) billion charge related to U.S. salaried pension plan actions announced earlier this year, among other smaller items.

The non-cash impairment of GM Europe long-lived assets does not reflect any change to the company's objective to break even in its European operations by mid-decade.

Segment Results

GM North America (GMNA) reported EBIT-adjusted of $1.4 billion in the fourth quarter of 2012 compared with $1.5 billion in 2011. Full-year EBIT-adjusted was $7.0 billion in 2012 compared to $7.2 billion in 2011. Based on GMNA's 2012 financial performance, the company will pay profit sharing of up to $6,750 to approximately 49,000 eligible GM U.S. hourly employees.
GM Europe (GME) reported EBIT-adjusted of $(0.7) billion in the fourth quarter of 2012, compared to $(0.6) billion in 2011. Full-year EBIT-adjusted was $(1.8) billion in 2012, compared with $(0.7) billion in 2011.

GM International Operations (GMIO) reported EBIT-adjusted of $0.5 billion in the fourth quarter of 2012 compared with $0.4 billion in 2011. Full-year EBIT-adjusted was $2.2 billion in 2012 compared with $1.9 billion in 2011.

GM South America (GMSA) reported EBIT-adjusted of $0.1 billion in the fourth quarter of 2012, compared with $(0.2) billion in 2011. Full-year EBIT-adjusted was $0.3 billion in 2012 compared with EBIT-adjusted of $(0.1) billion in 2011.

GM Financial reported earnings before taxes (EBT) of $0.1 billion in the fourth quarter of 2012, compared with $0.2 billion in 2011. Full-year EBT was $0.7 billion, compared to $0.6 billion in 2011.

Cash Flow and Liquidity

For the fourth quarter of 2012, automotive cash flow from operating activities was $0.5 billion, compared to $1.2 billion in 2011. In the fourth quarter of 2012, adjusted automotive free cash flow was $1.1 billion, compared to $(0.2) billion in 2011. For the year, adjusted automotive free cash flow was $4.3 billion, compared to $3.0 billion a year ago.

GM ended 2012 with strong total automotive liquidity of $37.2 billion compared with $37.0 billion at year-end in 2011. Automotive cash and marketable securities was $26.1 billion at the end of 2012, compared with $31.6 billion a year earlier.

GM expects capital expenditures for 2013 to be similar to 2012.

U.S. Pension Update

GM's U.S. defined benefit pension plans earned asset returns of 11.6 percent in 2012 and ended the year 84 percent funded. The underfunded position stood at $13.1 billion, slightly improved from the prior year. As previously announced, during 2012 GM settled approximately $28 billion of its U.S. salaried pension liability through a combination of lump sum offers and annuitizations.

Under current economic conditions, GM expects no mandatory contributions to U.S. defined benefit pension plans for at least five years. While the company will continue to evaluate opportunities to make voluntary cash contributions, it has no current plans to do so in 2013.

"We're pleased with our fourth quarter results, as the business generated strong adjusted free cash flow and we took significant steps to strengthen our fortress balance sheet," said Dan Ammann, senior vice president and CFO. "Our aggressive vehicle launch cadence and focus on improving the topline, combined with rigorous cost discipline will help us continue to generate strong business results moving forward."