North America, China power GM to record $9.7b annual profit

DETROIT -- Strong earnings in North America and China and a reversal of fortunes in Europe powered General Motors to a record net profit of $9.7 billion last year.

See Full Article

The profit more than doubled GM's 2014 earnings and was aided by a $3.9 billion fourth-quarter accounting gain because prospects for turning a profit in Europe are good. The company expects to break even there this year.

Excluding special items, GM earned $5.02 per share for the year, beating Wall Street estimates of $4.82. Profits were fueled by strong SUV and truck sales largely in North America.

Full-year revenue fell just over 2 per cent to $152.4 billion, but still beat analyst estimates of $144.9 billion.

Earnings were so strong that most of GM's 49,600 hourly workers will get $11,000 profit-sharing checks on Feb. 26. The checks were based on North American pretax earnings, which hit a record of just over $11 billion for the year.

"We continue to strengthen our core business, which is laying the foundation for the company to lead in the transformation to personal mobility," CEO Mary Barra said in a statement.

GM recently invested $500 million in ride-hailing service Lyft and has announced plans to start its own car-sharing services in metro areas worldwide as it prepares for the next generation of transportation.

For the fourth quarter, GM posted a $6.3 billion net profit. Without special items, the company earned $1.39 per share, beating estimates of $1.20.

Fourth-quarter revenue was flat at $39.6 billion, just below Wall Street estimates.

Its shares jumped 38 cents, or 1.3 per cent, to $30.03 in premarket trading about an hour and half before the market open.


Latest Economic News

  • EU approves Bayer takeover of Monsanto after concessions

    Economic CTV News
    BRUSSELS -- The European Union has approved Bayer's buyout of Monsanto in a massive agriculture business deal, but says they will have to shed some $7.4 billion in firms and other remedies to ensure fair competition in the market. Source
  • Trump tariffs set off industry scramble for exemptions

    Economic CTV News
    WASHINGTON -- When U.S. Commerce Secretary Wilbur Ross held up a can of Campbell's soup in a CNBC interview to make the case that the Trump administration's steel and aluminum tariffs were "no big deal," the canning industry begged to disagree -- and they were hardly alone. Source
  • Judge: Weinstein company can pay bills, work toward sale

    Economic CTV News
    DOVER, Del. -- A Delaware bankruptcy judge on Tuesday issued initial orders allowing the Weinstein Co. to continue paying its bills and working toward a sale of substantially all of its assets. Judge Mary Walrath's rulings include interim approval for the company to borrow up to $25 million to see it through bankruptcy, but only after she expressed concern about the loan terms in the face of a competing financing proposal. Source
  • World shares waver as investors await Fed decision on rates

    Economic CTV News
    SEOUL, Korea, Republic Of -- World shares were mostly lower Wednesday as some markets gave back early gains ahead of the Federal Reserve's first decision on interest rates since the appointment of its new chair, Jerome Powell. Source
  • Canadians to get emergency alerts on their phones soon

    Economic CTV News
    TORONTO -- Canada's wireless providers are preparing for a looming update to the National Public Alerting System that will force smartphones to sound an ominous alarm when an emergency alert is triggered. In case of emergencies including Amber Alerts, forest fires, natural disasters, terrorist attacks or severe weather, officials will be able to send a localized alert that will compel compatible phones on an LTE network to emit an alarm -- the same shrill beeping that accompanies TV and radio…
  • 'Too much stuff' — Why the self-storage industry is booming in Canada

    Economic CBC News
    ?You might think self-storage is one of the most boring businesses on the planet — if you've ever bothered to give it a thought. But guess again. A number of Canadian companies are investing big bucks to offer new, creative services that are transforming the industry. Source
  • New titanium industry could grow out of oilsands waste

    Economic CBC News
    After several years and nearly $100 million of research, engineers say they have developed new technology to extract valuable metals from the waste produced by the oilsands in northern Alberta. Canadian Natural Resources and Titanium Corp. Source
  • Liberals tried pilot project with Facebook data whistleblower in 2016: source

    Economic CTV News
    OTTAWA -- The Canadian data scientist who admitted to helping political parties score electoral wins by exploiting the private information of millions of Facebook users also oversaw a short-lived pilot project for the federal Liberals shortly after the 2015 election, The Canadian Press has learned. Source
  • 'Yeah, we can work with that': Auto talks mark potential NAFTA breakthrough

    Economic CTV News
    WASHINGTON -- A potential breakthough to an impasse over automobiles has created a new sense of optimism in the NAFTA negotiations, with different players Tuesday declaring themselves more hopeful of a deal than they have been in some time. Source
  • Ontario Teachers takes $400M stake in Assassin's Creed producer Ubisoft

    Economic CTV News
    TORONTO -- The Ontario Teachers' Pension Plan is spending about $400 million to take a 3.4 per cent stake in French video game giant Ubisoft as part of a complex deal that will allow French conglomerate Vivendi to sell all of its Ubisoft shares. Source