General Motors Co. had its lowest quarterly profit in the last quarter of 2011, contributing to $7.6 billion in earnings for the entire year. Its net income for the fourth quarter declined by 7% when compared to the same period the previous year when it posted $472 million due to a $562 million loss in Europe (the worst in that year in the region).
This had affected GM’s total figures. Meanwhile, North American earnings almost doubled. If one-time gains and losses are eliminated, its profit would have been $900 million. In a statement, GM CEO Dan Akerson said that the company will improve on these results as it releases more new cars, crossovers and trucks to market to make GM a “far more efficient global team.”
He said that GM aims to reduce its break-even level in Europe and South America and to boost its higher revenues worldwide. Its revenue in the fourth-quarter increased by 3% to $38 billion. In 2011, it posted a net profit of $7.6 billion while it reported 2010 earnings of $4.7 billion. It had gotten a $1.6 billion gain on a first-quarter sale of stock that GM owned in supplier Delphi Automotive.
The fourth quarter of 2011 marks the eighth consecutive quarterly profit of GM since it emerged from bankruptcy in July 2009. The net income in the fourth quarter included several one-time gains and losses.
It gets a $749 million gain in November for moving retiree health-care expenses in Canada into a trust. In addition, GM posted $621 million in goodwill impairment charges in Europe while it had $258 million for its GM International operations unit, mainly China. About $555 million is linked to investments in Ally Financial, the former captive finance arm of GM.