GM Misses By a Penny, Takes Hit in Europe
DETROIT (TheStreet) -- General Motors (GM) missed fourth-quarter earnings estimates by a penny as it lost money in both Europe and South America.
During the quarter, including items, the automaker earned $500 million, or 28 cents a share, including a net loss from special items of 11 cents. Excluding items, the company earned 40 cents a share. Analysts surveyed by Thomson Reuters had estimated 41 cents.
Revenue rose 3% to $38 billion, in line with estimates.
In North America, the automaker reported earnings before interest and taxes of $1.5 billion, up from $800 million in the same period a year earlier. In Asia, the company reported a gain of $400 million. But GM Europe lost $600 million and GM South America reported a loss of $200 million.
Looking forward, GM said that 2012 will bring "continued pricing improvement with cost inflation well contained, while product mix and pension expense are expected to be unfavorable." Revenue is expected to grow.
"We are working hard to eliminate complexity and cost throughout the organization to increase margins in all of our regions, and return Europe and South America to profitability," said Chief Financial Officer Dan Ammann, in a prepared statement.
For the full year, GM reported net income of $7.6 billion, or $4.58 a share, up from $4.7 billion, or $2.89 a share a year earlier. Revenue rose 11% to $150 billion.
-- Written by Ted Reed in Charlotte, N.C.
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