GM saw 2% jump in net profit in fourth quarter of 2013

Article by Anita Panait, on February 8, 2014

General Motors posted a 2-percent rise in net profit in the fourth quarter of 2013 to $913 million, on its way to logging its 16th straight quarterly profit. The carmaker also logged a 53-percent jump in earnings before interest and taxes and excluding nonrecurring items – which GM considers the best measure of its underlying performance -- to $1.9 billion, with several one-time items cutting around $200 million from the bottom line.

The one-off items included costs related to GM's wind-down of most of its Chevrolet sales in Europe and production in Australia. GM also logged a 3-percent rise in fourth-quarter revenue to $40.5 billion. Despite the seemingly strong results, it also emphasized a number of weak spots that the new executive team at GM, led by new chief executive Mary Barra, has to conquer.

For instance, GM posted losses in its International Operations business, excluding China. Likewise, GM saw its profits South America drop as sales slumped. While GM has managed to trim its losses in Europe, executives expect a challenging year of weak pricing and restructuring costs.

"Clearly we have a lot of work ahead to make all of our regions solidly and consistently profitable," Barra told analysts during her first earnings conference call. "It's going to be a multiyear journey that will include brand building, significant reductions in materials and logistics costs, and overall lower fixed costs."

Topics: gm, profit

If you liked the article, share on:

Comments

Recommended

Is there anything more exciting than a spoiler? Well, for those who didn't know, there are those who have already seen the Mercedes-AMG Project One (in the flesh) way before...
by - April 25, 2017
Does the Honda Passport ring a bell to you? This was the first ever SUV that was sold by the Japanese automaker, but it was not that successful compared with...
by - April 25, 2017
Wagon buyers who prefer their vehicle to be luxurious, you will have an entirely brand new selection at the latter part of this year. Porsche will start rolling out 4...
by - April 25, 2017
McLaren rejects the idea of creating anything other than a sports car. That means that vehicles that would be ideal for families such as an SUV or a crossover are...
by - April 25, 2017
The new and improved Opel Grandland X is out, and this large SUV is something the European market did not know they would need. Now measuring at 14.7 feet (4.48...
by - April 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries