Filed under: GM, Earnings/Financials
General Motors released a statement about its income for the 2012 calendar year today, reporting a net income of $4.9 billion and an earnings before interest and tax (EBIT) figure of some $7.9 billion. Per share that breaks down to $2.92, versus net income of $4.58 per share last year. These numbers are in contrast to the automaker's revenue figures, which rose in 2012 to $152.3 billion from $150.3 billion in 2011.
GM calls out the discrepancy of revenue to income, saying that it is "primarily" due to "unfavorable special items," as well as hits taken in the slumping European markets.
The special items portion is where the story gets a little bit confusing. The company says that $0.5 billion worth of special items negatively impacted income this year. Numbered among those items are -$26.2 billon non-cash good will impairment charge (this occurs when a company buys something large for more than its "book value"), $2.2 billion added to the US salaried pension plan, and a -$5.2 billion "non-cash impairment" of GM Europe Assets.
Even with that half-billion accounted for the remaining $2.2 billion difference in this year's income versus 2011 could speak to operating costs that are trending in the wrong direction.
Still, CEO Dan Akerson is bullish about the coming year saying, "Our priorities will be executing flawless new vehicle launches, controlling costs and delivering more vehicles to our customers at outstanding value." Feel free to scroll down to take in the whole of GM's rather impenetrable press release.
Continue reading GM nets income of $4.9B in 2012, down from $7.9B in 2011
GM nets income of $4.9B in 2012, down from $7.9B in 2011 originally appeared on Autoblog on Thu, 14 Feb 2013 18:30:00 EST. Please see our terms for use of feeds.
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