GM posts USD 7.6 bn net profit for 2011

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IANS | 17 Feb, 2012
General Motors Co. has posted a net profit of USD 7.6 billion for the whole of 2011, but troubles in Europe weakened its earnings and underscored challenges in 2012.

The car maker said Thursday in a statement that its net income in the fourth quarter of 2011 reached USD 500 million, bringing the year's total to USD 7.6 billion, or USD 4.58 earnings per share, up from 2010's USD 2.89, reported Xinhua.

Dan Akerson, GM's chairman and CEO, said the company will build on these results as it brings more new cars, crossovers and trucks to market.

Meanwhile, GM reported USD 7.2 billion of earnings before interest and tax (EBIT) in North America market in 2011 while suffering a loss of USD 700 million in the European market.

Besides, GM's US defined benefit pension plans earned asset returns of 11.1 percent in 2011 and its pension was 88 percent funded, almost unchanged from 89 percent funded a year ago.

Looking forward, GM expects continued pricing improvement with cost inflation well contained, while product mix and pension expense are expected to be unfavourable. Capital spending in 2012 is expected to be USD 8 billion as the company continues to aggressively invest in new products and technologies.

General Motors reported a sales decline of six percent in January this year. The company filed for bankruptcy in 2009 and the US Treasury Department still owns about 26 percent of the company.