Teh One Who Knocks
02-14-2013, 04:54 PM
Fred Meier and James R. Healey, USA TODAY
http://i.imgur.com/tXmCiGG.jpg
General Motors says it had net earnings of $892 million in the fourth quarter, up 89% from $472 million a year ago, bringing its full-year net income to $4.9 billion, or $2.92 per share, down 36% from $7.6 billion a year ago.
The big automaker reported $152.3 billion in revenue for 2012, up 1%. Fourth quarter revenue was $39.3 billion, up 3% from a year ago.
Earnings per share in the fourth quarter of 48 cents excluding special items was below Bloomberg's consensus estimate of 51 cents. GM shares were up 45 cents, or 1.57%, at $29.12 in early trading.
"Some of the operating metrics in North America seemed light to us," said analyst Peter Nesvold at Jeffries in a note to clients before the market opened. He was referring to GM's lack of big profit margins, its inability to get top dollar for its vehicles and its drop in market share to 17.9% share, according to Autodata, down from 19.6% in 2011, as Japanese automakers recovered strongly from the 2011 tsunami. .
But, he said, "Much of this will likely be self-correcting given GM's substantial product pipeline over the next 12-18 months."
Brian Johnson, analyst at Barclays, said in a note to clients that this year will be a challenge: "We maintain our view that '14 is the sweet spot for GM, as we expect GM to benefit from multiple product improvements ... while also demonstrating improvement in its path to breakeven in Europe." He cited, in particular, 2014 being the first full year of production for the new-design full-size Chevrolet Silverado and GMC Sierra pickups that begin rolling out in March.
The trucks are, CEO Dan Akerson told Wall Street analysts in a conference call this morning, "our most important news."
Other important product launches include a new Chevrolet Impala sedan and Corvette sports car. Cadillac has just launched the smaller ATS sedan and will show a new generation of its volume CTS sedan.
"With over a dozen new and refreshed models for 2013, particularly the highly profitable full-size trucks, GM's outlook remains to be positive for continued growth in North America, China, India and Brazil, despite the stubborn European market challenges," commented veteran industry analyst Jesse Toprak of TrueCar.com.
The earnings reported for the year were cut by a complicated bundle of special charges of $531 million, or 32 cents per share. Nesvold called it "a noisy quarter." Earnings in 2011 were boosted $1.2 billion, or 70 cents per share by special items.
By region in the fourth quarter, GM said it $1.4 billion in North America in the fourth quarter and $7 billion for the year, compared with $1.5 billion and $7.2 billion a year ago. The 2012 performance will bring profit-sharing checks of up $6,750 for GM's about 49,000 eligible hourly employees.
That offset losses in ailing Europe of $699 million in the quarter, up from $562 million a year ago. The total 2012 loss there was $1.8 billion. more than double the $747 million a year ago.
GM reaffirmed its forecast of breaking even in Europe by mid-decade.
GM is last of the major car companies to report the quarter. The Detroit makers all were profitable overall, but Europe continues to bleed money for Ford Motor as well as GM. Chrysler Group escapes because it has no significant operation in Europe, but bankruptcy rescuer and majority owner Fiat now is depending on Chrysler to help offset its European losses.
In earlier earnings reports from GM's Detroit rivals, Ford said it made $1.6 billion in the fourth quarter and $5.67 billion for the year and Chrysler said it made $378 million in the fourth quarter and $1.67 billion for the year.
To overhaul money-losing Europe, GM said Jan. 31 it will put a new man in charge of Opel -- GM's European auto unit.Karl-Thomas Neumann, a turnaround expert, becomes chairman of the management board of Adam Opel on March 1. He also becomes president of GM Europe and a GM vice president.
Opel (sold in the U.K. as Vauxhall) "is a key to General Motors' global success," CEO Akerson said at Neumann's appointment. "This move will ensure that we have the best possible leadership in place as we continue driving toward profitability and growth in Europe."
Earnings from GM's International Operations unit, which includes China, were $473 million in the quarter and $2.2 billion for the year, up from $373 million and $1.9 billion a year ago. And South America turned into the black, with earnings of $99 million for the quarter and $271 million for the year vs. losses of $225 million for the quarter and $122 million for the year in 2011.
http://i.imgur.com/tXmCiGG.jpg
General Motors says it had net earnings of $892 million in the fourth quarter, up 89% from $472 million a year ago, bringing its full-year net income to $4.9 billion, or $2.92 per share, down 36% from $7.6 billion a year ago.
The big automaker reported $152.3 billion in revenue for 2012, up 1%. Fourth quarter revenue was $39.3 billion, up 3% from a year ago.
Earnings per share in the fourth quarter of 48 cents excluding special items was below Bloomberg's consensus estimate of 51 cents. GM shares were up 45 cents, or 1.57%, at $29.12 in early trading.
"Some of the operating metrics in North America seemed light to us," said analyst Peter Nesvold at Jeffries in a note to clients before the market opened. He was referring to GM's lack of big profit margins, its inability to get top dollar for its vehicles and its drop in market share to 17.9% share, according to Autodata, down from 19.6% in 2011, as Japanese automakers recovered strongly from the 2011 tsunami. .
But, he said, "Much of this will likely be self-correcting given GM's substantial product pipeline over the next 12-18 months."
Brian Johnson, analyst at Barclays, said in a note to clients that this year will be a challenge: "We maintain our view that '14 is the sweet spot for GM, as we expect GM to benefit from multiple product improvements ... while also demonstrating improvement in its path to breakeven in Europe." He cited, in particular, 2014 being the first full year of production for the new-design full-size Chevrolet Silverado and GMC Sierra pickups that begin rolling out in March.
The trucks are, CEO Dan Akerson told Wall Street analysts in a conference call this morning, "our most important news."
Other important product launches include a new Chevrolet Impala sedan and Corvette sports car. Cadillac has just launched the smaller ATS sedan and will show a new generation of its volume CTS sedan.
"With over a dozen new and refreshed models for 2013, particularly the highly profitable full-size trucks, GM's outlook remains to be positive for continued growth in North America, China, India and Brazil, despite the stubborn European market challenges," commented veteran industry analyst Jesse Toprak of TrueCar.com.
The earnings reported for the year were cut by a complicated bundle of special charges of $531 million, or 32 cents per share. Nesvold called it "a noisy quarter." Earnings in 2011 were boosted $1.2 billion, or 70 cents per share by special items.
By region in the fourth quarter, GM said it $1.4 billion in North America in the fourth quarter and $7 billion for the year, compared with $1.5 billion and $7.2 billion a year ago. The 2012 performance will bring profit-sharing checks of up $6,750 for GM's about 49,000 eligible hourly employees.
That offset losses in ailing Europe of $699 million in the quarter, up from $562 million a year ago. The total 2012 loss there was $1.8 billion. more than double the $747 million a year ago.
GM reaffirmed its forecast of breaking even in Europe by mid-decade.
GM is last of the major car companies to report the quarter. The Detroit makers all were profitable overall, but Europe continues to bleed money for Ford Motor as well as GM. Chrysler Group escapes because it has no significant operation in Europe, but bankruptcy rescuer and majority owner Fiat now is depending on Chrysler to help offset its European losses.
In earlier earnings reports from GM's Detroit rivals, Ford said it made $1.6 billion in the fourth quarter and $5.67 billion for the year and Chrysler said it made $378 million in the fourth quarter and $1.67 billion for the year.
To overhaul money-losing Europe, GM said Jan. 31 it will put a new man in charge of Opel -- GM's European auto unit.Karl-Thomas Neumann, a turnaround expert, becomes chairman of the management board of Adam Opel on March 1. He also becomes president of GM Europe and a GM vice president.
Opel (sold in the U.K. as Vauxhall) "is a key to General Motors' global success," CEO Akerson said at Neumann's appointment. "This move will ensure that we have the best possible leadership in place as we continue driving toward profitability and growth in Europe."
Earnings from GM's International Operations unit, which includes China, were $473 million in the quarter and $2.2 billion for the year, up from $373 million and $1.9 billion a year ago. And South America turned into the black, with earnings of $99 million for the quarter and $271 million for the year vs. losses of $225 million for the quarter and $122 million for the year in 2011.