General Motors Company
) posted a profit of $0.7 billion or 39 cents per share in the
fourth quarter of 2011, missing the Zacks Consensus Estimate by 3
cents per share. The results excluded net loss from special items
of $0.2 billion or 11 cents per share. It compared with the profit
of $0.9 billion or 52 cents per share in the fourth quarter of
Revenues in the quarter scaled up 3% to $38.0 billion, which was
in line with the Zacks Consensus Estimate. Unit sales escalated 3%
to 2.2 million vehicles from the fourth quarter of 2010. The
automaker occupied a market share of 11.7% during the quarter, up
from 11.5% in the year-ago quarter.
Adjusted earnings before interest and tax (EBIT) was $1.1
billion compared with $1.0 billion in the fourth quarter of 2010.
Adjusted EBIT included the impact of restructuring charges of $0.3
GM North America (GMNA)
generated revenues of $23.1 billion during the quarter, a 5% rise
from the year-ago level. Adjusted EBIT increased to $1.5 billion
from $0.8 billion in the fourth quarter of 2010.
GM Europe (
had revenues of $6.3 billion, a 9% decrease from the previous year
quarter. The segment reported an adjusted loss of $0.6 billion in
the quarter, which was flat compared with the year-ago level.
GM International Operations (GMIO)
generated revenues of $7.0 billion, a 22% growth from the prior
year. Adjusted EBIT was $0.4 billion in the quarter compared with
$0.3 billion in the comparable quarter of 2010.
GM South America (GMSA)
had revenues of $4.2 billion, a 6% dip from the prior-year quarter.
The segment had an adjusted loss of $0.2 billion in the quarter
compared with an EBIT of $0.2 billion in the fourth quarter of
Meanwhile, GM Financial reported an impressive 40% rise in
revenues to $394 million during the quarter from $281 million in
the fourth quarter of 2010. The segment recorded an adjusted EBIT
of $0.2 billion during the quarter under study.
For full year 2011, GM reported a profit of $7.6 billion or
$4.58 per share, up from $4.7 billion or $2.89 per share in 2010.
It compared with the Zacks Consensus Estimate of $3.90 per
Revenue increased 11% to $150.3 billion from $135.6 billion in
2010. Unit sales escalated 8% to 9.0 million vehicles from 8.4
million vehicles in 2010. Adjusted EBIT in the year was $8.3
billion compared with $7.0 billion in 2010. The automaker's global
market share during the year increased to 11.9% from 11.5% in
GM had cash and cash equivalents of $15.5 billion as of December
31, 2011 compared with $21.1 billion at the end of 2010. Total debt
increased to $5.3 billion as of the above date from $4.6 billion as
of December 31, 2010.
The company's automotive net cash flow was $7.4 billion in 2011,
up from $6.6 billion in 2010. Capital expenditures increased to
$6.2 billion from $4.2 billion in 2010.
GM expects to boost its top-line revenue in 2012 on the back of
an expansion in the global automotive industry. The company
anticipates continued pricing improvement with cost inflation while
product mix and pension expense are expected to be unfavorable. It
forecasted capital expenditures of $8 billion in the year as it
continues to invest aggressively in new products and
GM, a Zacks #3 Rank (Hold) stock, had to seek bankruptcy
protection in 2009 due to unfavorable economic conditions and a
rapid decline in sales. However, the automaker recouped its sales
and earnings by banking on the emerging markets, economic recovery
and improved cost structure.
GM's hometown rival
Ford Motor Co.
) posted a 34% fall in profit to $797 million or 20 cents per share
(before special items) in the fourth quarter of 2011 from $1.20
billion or 30 cents per share (before special items) in the same
quarter of 2010. With this, the automaker has missed the Zacks
Consensus Estimate by 7 cents per share.
FORD MOTOR CO (
): Free Stock Analysis Report
GENERAL MOTORS (
): Free Stock Analysis Report
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