OREANDA-NEWS. General Motors Co. (NYSE: GM) today announced 2012 calendar-year net income attributable to common stockholders of USD 4.9 billion, or USD 2.92 per fully diluted share, down from USD 7.6 billion, or USD 4.58 per fully diluted share in 2011, due primarily to unfavorable special items.

Special items during the calendar year impacted full-year net income to common stockholders unfavorably, USD (0.5) billion, or USD (0.32) per share, compared to a favorable USD 1.2 billion impact in 2011, or USD 0.70 per share.

Revenue increased 1 percent to USD 152.3 billion, compared with USD 150.3 billion in 2011. Full-year earnings before interest and tax (EBIT) adjusted was USD 7.9 billion, compared with USD 8.3 billion in 2011. Full-year EBIT-adjusted for 2012 includes the impact of restructuring charges of USD (0.4) billion.

“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.”
Fourth Quarter Results

Revenue in the fourth quarter of 2012 increased 3 percent to USD 39.3 billion, compared with the fourth quarter of 2011. GM’s fourth quarter 2012 net income attributable to common stockholders was USD 0.9 billion, or USD 0.54 per fully diluted share, including a net gain from special items of USD 0.1 billion or USD 0.06 per fully diluted share.

In the fourth quarter of 2011, GM’s net income attributable to common stockholders was USD 0.5 billion, or USD 0.28 per fully diluted share, including a net loss from special items of USD (0.2) billion, or USD (0.11) per fully diluted share.

EBIT-adjusted was USD 1.2 billion in the fourth quarter of 2012, compared with USD 1.1 billion in the fourth quarter of 2011. Fourth quarter EBIT-adjusted for 2012 includes the impact of restructuring charges of USD (0.2) billion.

GM’s fourth quarter 2012 special items impact to net income of USD 0.1 billion includes a USD 34.9 billion non-cash benefit from the release of the majority of the company’s valuation allowances on U.S. and Canada deferred tax assets and an associated USD (26.2) billion non-cash goodwill impairment charge; a USD (5.2) billion non-cash impairment of GM Europe long-lived assets; and a USD (2.2) billion charge related to U.S. salaried pension plan actions announced earlier this year, among other smaller items.

The non-cash impairment of GM Europe long-lived assets does not reflect any change to the company’s objective to break even in its European operations by mid-decade.

Segment Results
GM North America (GMNA) reported EBIT-adjusted of USD 1.4 billion in the fourth quarter of 2012 compared with USD 1.5 billion in 2011. Full-year EBIT-adjusted was USD 7.0 billion in 2012 compared to USD 7.2 billion in 2011. Based on GMNA’s 2012 financial performance, the company will pay profit sharing of up to USD 6,750 to approximately 49,000 eligible GM U.S. hourly employees.
GM Europe (GME) reported EBIT-adjusted of USD (0.7) billion in the fourth quarter of 2012, compared to USD (0.6) billion in 2011. Full-year EBIT-adjusted was USD (1.8) billion in 2012, compared with USD (0.7) billion in 2011.
GM International Operations (GMIO) reported EBIT-adjusted of USD 0.5 billion in the fourth quarter of 2012 compared with USD 0.4 billion in 2011. Full-year EBIT-adjusted was USD 2.2 billion in 2012 compared with USD 1.9 billion in 2011.
GM South America (GMSA) reported EBIT-adjusted of USD 0.1 billion in the fourth quarter of 2012, compared with USD (0.2) billion in 2011. Full-year EBIT-adjusted was USD 0.3 billion in 2012 compared with EBIT-adjusted of USD (0.1) billion in 2011.
GM Financial reported earnings before taxes (EBT) of USD 0.1 billion in the fourth quarter of 2012, compared with USD 0.2 billion in 2011. Full-year EBT was USD 0.7 billion, compared to USD 0.6 billion in 2011.

Cash Flow and Liquidity

For the fourth quarter of 2012, automotive cash flow from operating activities was USD 0.5 billion, compared to USD 1.2 billion in 2011. In the fourth quarter of 2012, adjusted automotive free cash flow was USD 1.1 billion, compared to USD (0.2) billion in 2011. For the year, adjusted automotive free cash flow was USD 4.3 billion, compared to USD 3.0 billion a year ago.

GM ended 2012 with strong total automotive liquidity of USD 37.2 billion compared with USD 37.0 billion at year-end in 2011. Automotive cash and marketable securities was USD 26.1 billion at the end of 2012, compared with USD 31.6 billion a year earlier.

GM expects capital expenditures for 2013 to be similar to 2012.

U.S. Pension Update

GM’s U.S. defined benefit pension plans earned asset returns of 11.6 percent in 2012 and ended the year 84 percent funded. The underfunded position stood at USD 13.1 billion, slightly improved from the prior year. As previously announced, during 2012 GM settled approximately USD 28 billion of its U.S. salaried pension liability through a combination of lump sum offers and annuitizations.

Under current economic conditions, GM expects no mandatory contributions to U.S. defined benefit pension plans for at least five years. While the company will continue to evaluate opportunities to make voluntary cash contributions, it has no current plans to do so in 2013.

“We’re pleased with our fourth quarter results, as the business generated strong adjusted free cash flow and we took significant steps to strengthen our fortress balance sheet,” said Dan Ammann, senior vice president and CFO. “Our aggressive vehicle launch cadence and focus on improving the topline, combined with rigorous cost discipline will help us continue to generate strong business results moving forward.”