GM 2012 profit drops

2013-02-14 16:16:23 GMT2013-02-15 00:16:23(Beijing Time)  Xinhua English

CHICAGO, Feb. 14 (Xinhua) -- General Motors Co. earned 4.86 billion dollars in 2012, down from a record 7.59 billion dollars in 2011, Detroit News quoted GM as saying Thursday.

The Detroit automaker earned 2.92 dollar per share for the year, down from 4.58 dollars a share in 2011.

GM's revenue rose by 1.3 billion dollars in the fourth quarter to 39.3 billion dollars and increased one percent in 2012 to 152.3 billion dollars.

Big losses in Europe and lower vehicle prices in North America market are major reasons behind the automaker's profit slip in 2012.

GM lost 699 million dollars before interest and taxes in Europe in the fourth quarter, compared to a loss of 562 million dollars a year ago; and lost 1.8 billion dollars in 2012 as a whole, compared to a loss of 747 million dollars in 2011.

In North America, GM earned 1.4 billion dollars before interest and taxes in the fourth quarter, compared to 1.5 billion dollars in the same quarter of 2011, and 6.9 billion dollars before tax in 2012, down slightly from about 7.2 billion dollars earned in 2011.

GM's other operating units posted gains in 2012. GM International Operations earned 2.19 billion dollars before interest and taxes, up from 1.9 billion dollars in 2011; GM South America earned 271 million dollars, compared to a loss of 122 million dollars in 2011; GM Financial earned 744 million dollars, up from 622 million dollars.

Analysts hold that 2012 as a whole was a good year for GM. Though the automaker lost certain market share at home, it still posted a 4-percent sales growth and has benefited greatly from the Chinese market expansion. GM is expected to enjoy continued sales growth in North America, China, India and Brazil in 2013.

GM is the last of Detroit's Big Three automakers to release financial results for 2012.

Ford Motor Co. announced in January it earned 5.67 billion dollars for 2012, a decrease of about 300 million dollars from 2011. In the fourth quarter of 2012, Dearborn-based Ford earned 1. 6 billion dollars.

Auburn Hills-based Chrysler Group LLC earned nearly 1.7 billion dollars in 2012, up from 183 million dollars in 2011. The automaker's fourth-quarter earnings stood at 378 million dollars.

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