General Motors Corp. on Wednesday reported net income of $US630 million, or $1.11 per share for the fourth quarter of 2004, down from $1.0 billion, or $2.13 per share a year ago. Revenue rose 4.7% to $51.2 billion. Consolidated net income for 2004, including special items, totalled $3.7 billion, or $6.51 per share, compared with $3.8 billion, or $7.14 per share, in 2003.
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Finance arm General Motors Acceptance Corporation (GMAC) reported net income of $1.5 billion in calendar-year 2004, up from $1.4 billion in 2003.
The increase reflected “considerable improvement in earnings from international operations, lower credit-loss provisions, improved proceeds from the sale of off-lease vehicles in North America, and the impact of favourable tax settlements, partially offset by lower net-interest margins”, GM said in a statement.
GM’s automotive operations earned $1.2 billion in 2004, up from $1.1 billion in 2003. Worldwide production totaled 9.1 million units in 2004, up from 8.8 million in 2003.
The automotive business reported earnings of $235 million in the fourth quarter of 2004, down from $396 million a year ago.
The results reflected a significant improvement at GM’s Latin America/Africa/Mid-East (GMLAAM) region and improved earnings at GM North America (GMNA), offset by losses at GM Europe (GME) and reduced earnings at GM Asia Pacific (GMAP).
General Motors Europe posted a loss of $742 million in 2004, compared with a loss of $286 million in 2003. In the fourth quarter of 2004, GME reported a loss of $345 million, compared with a loss of $66 million in the year-ago quarter.
“GM Europe reached an important milestone in December when we agreed with our European labour unions on the framework for a restructuring plan that will help GME reduce its cost footprint,” GM president and CEO Rick Wagoner said. “But we’re also focused on improving revenue.”
GMNA earned $1.2 billion in 2004, in line with 2003 results, though its market share in North America declined to 26.7% in 2004 from 27.4% in 2003.
The North American operations earned $416 million in the fourth quarter of 2004, up from $397 million in the fourth quarter of 2003.
GM Asia-Pacific reported record net income of $729 million in 2004, up from $577 million in 2003. Fourth quarter earnings of $117 million compared with $177 million a year ago.
GM expects 2005 earnings to be approximately $4.00 to $5.00 per share and has estimated at least break-even results for the first quarter of 2005.
