General Motors reported a profit of US$7.6 billion ($7.1 billion) in its first full year as a public company, representing an increase of 62 per cent over its financial performance in 2010.
Revenue increased 11 per cent to US$150.3 billion ($139.8 billion) in a year that GM became the world’s largest automaker, toppling Volkswagen and a natural disaster-crippled Toyota, with 9.03 million new vehicle sales.
GM has now turned a profit in eight consecutive quarters since it emerged from bankruptcy in 2009, although it managed just a US$500 million ($464 million) profit in the fourth quarter 2011.
North America remains the manufacturing giant’s core market, with 95 per cent of GM’s total profit generated in that market. Based on the strong performance, approximately 47,500 eligible GM hourly workers in the US will benefit from profit sharing of up to US$7000 ($6500).
The news wasn’t so good in Europe, however, where GM lost US$700 million ($649 million) in 2011, although positively, the loss was only half as bad as it was in the previous year.
GM’s international operations (which includes Australia) made a US$1.9 billion ($1.8 billion) profit, while the South America division lost US$100 million ($92.8 million).
Looking forward to 2012, GM senior vice president and CFO Dan Ammann says he expects revenue to increase as the global automotive industry continues to grow.
“We are executing an aggressive product plan that will give customers around the world even more reasons to purchase a General Motors vehicle,” Ammann said.
“Behind the scenes, we are working hard to eliminate complexity and cost throughout the organisation to increase margins in all of our regions, and return Europe and South America to profitability. Overall, we have made good progress and we have more work to do.