GM Reports $900 Million Fourth Quarter Net Income, $3.8 Billion for 2013
Despite improved revenue, General Motors announced that its 2013 income totaled $3.8 billion, down from $4.9 billion in 2012. Revenue was up 2 percent from $152.3 billion in 2012 to $155.4 billion in 2013, but taxes and other expenses overshadowed these gains.
GM's fourth quarter income was the same as 2012's $900 million, although pre-tax and fee earnings were $1.9 billion, up from $1.2 billion in 2012. Although partially offset by other gains, the larger tax impact was a consequence of charges related to Chevrolet's exit from Europe and the cessation of manufacturing Holden vehicles in Australia. Full-year earnings before taxes and interest were up from $7.9 billion in 2012 to $8.6 billion in 2013.
"Launches of some of the best vehicles in our history combined with significant improvements in our core business led to a solid year," said new GM chief Mary Barra in a statement. "The tough decisions made during the year will further strengthen our operations. We're now in execution mode and our sole focus will be on delivering results on a global basis."
GM North America recorded its best year of pre-tax and interest earnings on record, pulling in $7.5 billion, up from $6.5 billion the previous year. Sales for 2013 were up 7.3 percent, and major launches for the Chevrolet Corvette and Cadillac CTS helped account for the some of that success. Earnings were not as positive for Europe and South America, which each fell in 2013. Income was down to $800 million in 2013 from $1.9 billion in Europe, while GM South America reported a decrease from $500 million in 2012 to $300 million in 2013.