General Motors has released its earnings for the fourth quarter, and the news is mostly good. Net income was $913 million, up two percent from $892 million recorded during the same period in 2012. Earnings for the entire year ended up still positive at $3.77 billion, but that figure is down 22.4 percent from the $4.9 billion earned in 2012 and the earnings ended up being lower than Wall Street expectations, the AP reports. Nevertheless, the positive cash flow marks the fourth consecutive year and 16th straight quarter this country's largest automaker (third largest in the world) has been profitable since emerging from bankruptcy.

There would have been more black ink in 2013 had it not been for some onetime items GM was forced to record on its balance sheet. Those include the cost of winding down the Chevrolet brand in Europe and shuttering all manufacturing in Australia.

GM workers in the US will also share more in the company's profits. Profit-sharing checks in the amount of $7,500 will be sent to 48,500 eligible employees, which is up from the $6,750 they received last year.
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GM Reports 2013 Net Income of $3.8 Billion
Full-year EBIT-adjusted of $8.6 billion, up from $7.9 billion in 2012

- Company posts fourth consecutive year of profits
- Fourth quarter net income of $0.9 billion, compared to $0.9 billion last year
- EBIT-adjusted of $1.9 billion in fourth quarter, up from $1.2 billion last year
- GM North America records best year ever with EBIT-adjusted of $7.5 billion


DETROIT – General Motors Co. (NYSE: GM) today announced 2013 calendar-year net income attributable to common stockholders of $3.8 billion, or $2.38 per fully diluted share, down from $4.9 billion, or $2.92 per fully diluted share in 2012. Operating performance improved during the year, but was more than offset by a net loss from special items and incremental tax expense.

Special items during the calendar year impacted full-year net income to common stockholders unfavorably, $(1.3) billion, or $(0.80) per share, compared to an unfavorable $(0.5) billion impact in 2012, or $(0.32) per share. These special items included charges for several strategic decisions taken to improve the company's future competitiveness in key global markets. Full-year results were also impacted by incremental tax expense of $(1.7) billion or $(1.02) per fully diluted share compared to 2012.

Revenue increased 2 percent to $155.4 billion, compared with $152.3 billion in 2012. Full-year earnings before interest and tax (EBIT) adjusted was $8.6 billion, compared with $7.9 billion in 2012. Full-year EBIT-adjusted for 2013 includes the impact of restructuring charges of $(0.4) billion.

"Launches of some of the best vehicles in our history combined with significant improvements in our core business led to a solid year," said GM CEO Mary Barra. "The tough decisions made during the year will further strengthen our operations. We're now in execution mode and our sole focus will be on delivering results on a global basis."

Overview (in billions except for per share amounts)

Q4 2012

Q4 2013

Full-year 2012

Full-year 2013

Revenue

$39.3

$40.5

$152.3

$155.4

Net income attributable to common stockholders

$0.9

$0.9

$4.9

$3.8

Earnings per share
(EPS) fully diluted

$0.54

$0.57

$2.92

$2.38

Impact of special items on EPS fully diluted

$0.06

$(0.10)

$(0.32)

$(0.80)

EBIT-adjusted

$1.2

$1.9

$7.9

$8.6

Automotive net cash flow from operating activities

$0.5

$2.8

$9.6

$11.0

Adjusted automotive
free cash flow

$1.1

$1.1

$4.3

$3.7


Fourth Quarter Results

Revenue in the fourth quarter of 2013 increased 3 percent to $40.5 billion, compared with the fourth quarter of 2012. GM's fourth quarter 2013 net income attributable to common stockholders was $0.9 billion, or $0.57 per fully diluted share, including a net loss from special items of $(0.2) billion or $(0.10) per fully diluted share.

In the fourth quarter of 2012, GM's 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.

EBIT-adjusted was $1.9 billion in the fourth quarter of 2013, compared with $1.2 billion in the fourth quarter of 2012. Fourth quarter EBIT-adjusted for 2013 includes the impact of restructuring charges of $(0.2) billion.

GM's fourth quarter 2013 special items impact to net income of $(0.2) billion includes a $(0.7) billion charge related to the exit of the Chevrolet brand from Europe, and a $(0.5) billion asset impairment related to the termination of manufacturing operations in Australia. A favorable tax settlement and a gain on the sale of an equity investment in Ally Financial, along with other smaller items, partially offset these charges.

Segment Results

- GM North America (GMNA) reported EBIT-adjusted of $1.9 billion in the fourth quarter of 2013 compared with $1.1 billion in 2012. Full-year EBIT-adjusted was $7.5 billion in 2013 compared to $6.5 billion in 2012, setting a record for earnings in North America. Based on GMNA's 2013 financial performance, the company will pay profit sharing of up to $7,500 to approximately 48,500 eligible GM U.S. hourly employees.
- GM Europe (GME) reported EBIT-adjusted of $(0.3) billion in the fourth quarter of 2013, compared to $(0.8) billion in 2012. Full-year EBIT-adjusted was $(0.8) billion in 2013, compared with $(1.9) billion in 2012.
- GM International Operations (GMIO) reported EBIT-adjusted of $0.2 billion in the fourth quarter of 2013 compared with $0.7 billion in 2012. Full-year EBIT-adjusted was $1.2 billion in 2013 compared with $2.5 billion in 2012.
- GM South America (GMSA) reported EBIT-adjusted of $0.0 billion in the fourth quarter of 2013, compared with $0.1 billion in 2012. Full-year EBIT-adjusted was $0.3 billion in 2013 compared with EBIT-adjusted of $0.5 billion in 2012.
- GM Financial reported earnings before taxes (EBT) of $0.2 billion in the fourth quarter of 2013, compared with $0.1 billion in 2012. Full-year EBT was $0.9 billion, compared to $0.7 billion in 2012.


Cash Flow and Liquidity

For the fourth quarter of 2013, automotive cash flow from operating activities was $2.8 billion, compared to $0.5 billion in 2012. In the fourth quarter of 2013, adjusted automotive free cash flow was $1.1 billion, unchanged from 2012. For the year, adjusted automotive free cash flow was $3.7 billion, compared to $4.3 billion a year ago.

GM ended 2013 with strong total automotive liquidity of $38.3 billion compared with $37.2 billion at year-end in 2012. Automotive cash and marketable securities was $27.9 billion at the end of 2013, compared with $26.1 billion a year earlier.

GM expects capital expenditures for 2014 to be approximately $7.5 billion.

Pension Update

GM's year-end global pension obligations of $99 billion were approximately 80 percent funded at the end of 2013. The year-end unfunded position was $19.9 billion, down from $27.8 billion at the end of 2012.

GM's U.S. defined benefit pension plan obligations of $71.5 billion ended the year approximately 90 percent funded. The year-end underfunded position was $7.3 billion, down by almost half from $14 billion the year prior. For 2013, the return on U.S. defined benefit pension plan assets was approximately 3 percent.

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 2014.

"In 2013, we strengthened our fortress balance sheet and delivered consistent earnings, providing the foundation for a quarterly dividend for our shareholders this year," said Chuck Stevens, GM executive vice president and chief financial officer. "This year we'll leverage our strength in the U.S. and China to execute important restructuring activities in other key global operations."

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, 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.

Forward-Looking Statements

In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned," "outlook" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors may include: our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate financing sources, including as required to fund our planned significant investment in new technology; our ability to successfully integrate Ally Financial's International Operations; the ability of our suppliers to timely deliver parts, components and systems; our ability to realize successful vehicle applications of new technology; overall strength and stability of our markets, particularly outside of North America and China; our ability to remain competitive in Korea and our ability to continue to attract new customers, particularly for our new products. GM's most recent annual report on Form 10-K and quarterly reports on Form 10-Q provide information about these and other factors, which we may revise or supplement in future reports to the SEC.


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    • 1 Second Ago
  • 71 Comments
      Morgan Reale
      • 1 Year Ago
      the auto numbers are so fake -- every month they show an increase in sales over the year and month prior.. never a loss -- GM - ALLY - GMAC they pulled a fast one and took us to the bank -- FREE MONEY -
        knightrider_6
        • 1 Year Ago
        @Morgan Reale
        yeah, facts and logic shouldn't be allowed to cloud your judgement.
        jebibudala
        • 1 Year Ago
        @Morgan Reale
        Morgan, you're hot. Therefore you're getting a thumbs up.
          Jobu
          • 1 Year Ago
          @jebibudala
          How much you want to bet "Morgan" is a fat 42 year old mama's boy in a basement somewhere??
        tiger
        • 1 Year Ago
        @Morgan Reale
        you didn\'t see January sales did you? You fail!
      eagle3636
      • 1 Year Ago
      Thank you President Obama, once again!
      knightrider_6
      • 1 Year Ago
      " IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed. Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check." - Mitt Romney aka the best candidate GOP could come up with.
        AwolG5
        • 1 Year Ago
        @knightrider_6
        Why are you ranting about politics on a Automotive site. Sorry the bailout wasn't needed. I don't think it was a waste but regardless the companies would probably still be here today.
        Jobu
        • 1 Year Ago
        @knightrider_6
        Dude- Mitt Romney said that because he is a *****- just like all the politicians on the left AND right. If you can't think for yourself, you lose.
      knightrider_6
      • 1 Year Ago
      "Profit-sharing checks in the amount of $7,500 will be sent to 48,500 eligible employees, which is up from the $6,750 they received last year." I call this TRICKLE UP economics. Unlike Reagonomics this is a real thing.
        Car Guy
        • 1 Year Ago
        @knightrider_6
        Go away political troll. This is a car site.
          knightrider_6
          • 1 Year Ago
          @Car Guy
          you don't like my freedom of speech?
          Jobu
          • 1 Year Ago
          @Car Guy
          + 1 Car Guy. Tightrider, you might want to actually learn what the freedom of speech is.
        jebibudala
        • 1 Year Ago
        @knightrider_6
        EBT are also "trickle up" economics. I get people buying my products all the time using EBT. I don't sell food, or any necessity really. It's toys. So, in a way, I'm getting my tax dollars back. Thank you government for having a 100% corrupt free system.
        fulredy
        • 1 Year Ago
        @knightrider_6
        Maybe they should, with all this success, pay back what they owe to the American taxpayer and the GM stockholders who got pennies on the dollar for their bailout.
          knightrider_6
          • 1 Year Ago
          @fulredy
          blah blah blah. Screw the stockholders. They don't pay taxes or contribute to economy in any positive way. And taxpayers got 10 times the return by saving 2 million jobs.
      Jobu
      • 1 Year Ago
      All of you getting ready to comment on the bailout, Government Motors, etc. Please just don't.
      Technoir
      • 1 Year Ago
      If power had been handed to the crazy GOPers in 2008, then the U.S. auto industry would have dissappeared. It is great to see that an American company turned it around and became profitable again. Best of luck for the future!
        Car Guy
        • 1 Year Ago
        @Technoir
        Bush proposed the bailout. Sorry to interject fact into your assumptions...........
          no1bondfan
          • 1 Year Ago
          @Car Guy
          That is true, but it is also true that the GOP promptly nominated a guy that was adamantly opposed to the bailout. In other words, you are both right.
          Phil
          • 1 Year Ago
          @Car Guy
          Bush was not a fiscal conservative in any way. You do realize that you lose all credibility when you reflexively blame Bush for everything?
      nocommie11
      • 1 Year Ago
      So, are they going to share some of that money with investors and shareholders that lost billions in favor of UAW sweetheart backroom deals?
      darkness
      • 1 Year Ago
      NOTHING better than being rewarded for hard work on the line, congrats to all of my GM people.
        nocommie11
        • 1 Year Ago
        @darkness
        May GM go into a swift and epic bankruptcy where they belonged for decades. Shed the burden of the UAW leeches and finally start making cars that are not the bottom of the barrel.
          darkness
          • 1 Year Ago
          @nocommie11
          Keep on wishing and praying for that because it's working so far.
      mahrmach
      • 1 Year Ago
      I too would post a profit if I stole 10 billion from the taxpayers. The government buys the bulk of GM's production so the theft continues. Once obama is gone and the raping of the taxpayer ends GM will fail badly. The socialist experiment will finally end.
        Todd Fleming
        • 1 Year Ago
        @mahrmach
        LOL you make it sound as if the government is giving money to GM still, that's simply false. Get a clue, the company has worked hard to turn around and it's efforts are working. here's proof.
        delsolo1
        • 1 Year Ago
        @mahrmach
        The auto bailout was a economic success for America, get over it
        icemilkcoffee
        • 1 Year Ago
        @mahrmach
        "The government buys the bulk of GM's production" Say WHAT?
      Tom C
      • 1 Year Ago
      Bush proposed the auto restructuring, but almost all of the opposition to the restructuring came from right. The Obama administration has done some things well and really messed up some others, but I don\'t see how anybody can deny that saving the US auto industry was a momentous accomplishment. GM was always full of talented people held back by incompetent managers and unreasonable union demands. Now they\'re free to make lots of money making great cars.
        Jake
        • 1 Year Ago
        @Tom C
        "I don\'t see how anybody can deny that saving the US auto industry was a momentous accomplishment." Well, this implies that you know the alternate reality. Who knows how it would have turned out otherwise. Perhaps a more reasonable bankruptcy. Also, GM is not the entire US auto industry. Ford was restructuring itself and Chrysler's solution was US bail-out and turn it in to the Italian auto-industry.
        nocommie11
        • 1 Year Ago
        @Tom C
        The unreasonable union demands have been left in place so the failure of GM is still going full speed.
        jebibudala
        • 1 Year Ago
        @Tom C
        Soooo. Bush's fault?
      Walt
      • 1 Year Ago
      For the umpteenth time, for the GM bailout the government - Gave GM a loan - which GM paid pack....in full....with interest Rather than make the entire deal a loan, our government - not GM - decided to take an equity position in the company in exchange for additional funding Stocks go up and down in value, but there is NEVER AN OBLIGATION ON THE PART OF THE ISSUING COMPANY TO BUY BACK SHARES OR COMPENSATE SHAREHOLDERS FOR LOST VALUE ON THOSE SHARES. Our government, in its infinite wisdom that is not available to mere mortals, was the one who structured the stock deal. If anyone is responsible for the loss, look no further than our fearless leaders. In summary, GM DOES NOT OWE THE TAXPAYER A FRIGGING DIME. If you don't understand this, STOP POSTING here or anywhere else until you have thoroughly research and understand this matter.
        Phil
        • 1 Year Ago
        @Walt
        There is a fallacy in your main point. No, a corporation is not under an obligation to compensate for shareholder losses. The difference is that most shareholders buy the share VOLUNTARILY and risk their money willingly. Whereas with GM, the taxpayers had no choice. I don't know about you, but I would NEVER have voluntarily bought GM stock. The point is, the government assumed risk as you illustrated, with somebody else's money. Yours. See the difference? Now quit being an ass and do your own damn research.
          Walt
          • 1 Year Ago
          @Phil
          One more time, for the perpetually obtuse. Did GM make the government buy GM stock? Or did our benevolent government decided all by itself that it should take the equity position in GM. Remember the part about the our government running GM at the point this deal was worked out? So when this deal was struck, our government and GM were one in the same. Here's a hint - stop believing those spam emails you get with the sensational headlines until you have read over the entire details in full, which I have and you so obviously have not.
      delsolo1
      • 1 Year Ago
      And the two Trillions dollars spent by Bush in the search for WMDs in Iraq was a wise investment
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