GM earnings hit by weak international resultsThursday 06 February 2014 19.07
General Motors has reported a modest increase in quarterly profits, but badly missed analyst expectations on weak performance in its international operations.
The largest US car maker, which fully emerged from a period of partial US government ownership in late 2013, posted hefty gains in its North America division.
Operating earnings in North America, the company's biggest division, rose nearly 65% to $1.9 billion.
But GM's operating earnings fell sharply in South America and in the international unit that includes China, India and the Middle East. The car giant's European losses dwindled, but they still finished the quarter in the red.
Net earnings for the quarter were $913m on revenues of $40.5 billion, compared with profits of $892m on revenues of $39.3 billion. That equates to an increase of 2.4%
Earnings per share were 57 cents, including a net loss of 10 cents per share due to non-operating items. Analysts had forecast profits of 87 cents per share.
GM's revenues also fell short of the $40.96 billion forecast by analysts. Net income for 2013 was $3.8 billion, down 22.4% from the 2012 earnings of $4.9 billion.
Revenues grew from $152.3 billion in 2012 to $155.4 billion in 2013.
"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's new chief executive 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," she added.