General Motors has reported 2012 net income of $4.9bn, down 36% on the previous year. However, revenues were up and profitability remained strong in North America. The weakening was accounted for by several unfavourable items as well as a bigger loss on its European operations.

“We recorded another solid year in 2012 as we grew the business, delivered a third straight year of profitability and took significant actions to put the company on a solid path for future growth,” said Dan Akerson, chairman and CEO. “This year our priorities will be executing flawless new vehicle launches, controlling costs and delivering more vehicles to our customers at outstanding value.”

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Revenue last year increased 1% to $152.3bn, compared with $150.3bn in 2011. Full-year earnings before interest and tax (EBIT – operating profit) adjusted was $7.9bn, compared with $8.3bn in 2011. Full-year EBIT-adjusted for 2012 includes the impact of restructuring charges of $(0.4)bn, GM said.

GM’s results showed continuing strong profitability in North America and the company announced a bonus for its US hourly employees. 

GM North America (GMNA) reported EBIT-adjusted of $1.4bn in the fourth quarter of 2012 compared with $1.5bn in 2011. Full-year EBIT-adjusted was $7.0bn in 2012 compared to $7.2bn in 2011. Based on GMNA’s 2012 financial performance, the company said it will pay profit sharing of up to $6,750 to approximately 49,000 eligible GM US hourly employees.

However, ongoing problems in Europe are likely to occupy GM executives in the coming weeks. The quarterly trend showed a widening loss for Opel/Vauxhall and some analysts have suggested that the company needs to shed another European assembly plant (beyond Bochum) and rejig plant/model mix in order to bring capacity more into line with demand. GM Europe (GME) reported an EBIT-adjusted loss of $700m in the fourth quarter of 2012, compared to $600m in Q4 2011. The full-year EBIT-adjusted loss in Europe was $1.8bn compared with $700m in 2011.

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Encouragingly, overall profitability for GM was up in the fourth quarter. EBIT-adjusted was $1.2bn in the fourth quarter of 2012, compared with $1.1bn in the fourth quarter of 2011, despite the fact that GM’s Q4 EBIT-adjusted includes the impact of restructuring charges of $200m.