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General Motors Posts Full-Year Income of $2.8 Billion

Motor Trend logo Motor Trend 2/4/2015 Conner Golden

General Motors on Wednesday posted fourth-quarter 2014 net income of $1.1 billion, a 22-percent increase over fourth-quarter 2013 earnings of $900 million.

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Full-year 2014 net income was $2.8 billion on gross revenues of $155.9 billion, a 26.3-percent decline from Fiscal Year 2013’s $3.8 billion from $155.3 billion in gross revenues. The 2014 net result includes $2.8 billion in recall costs and $1 billion in restructuring costs.

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“A strong fourth quarter helped us deliver very good core operating results in 2014 despite significant challenges we and the industry faced,” CEO Mary Barra said in a release. It’s also good news for enthusiasts – better profits means more money to spend on sports cars and specialty models.

European operations continue to drain GM’s profits. GM Europe lost $365 million in the fourth quarter, for a full-year 2014 net loss of $393 million. The company attributes much of this loss to the devaluation of the Russian ruble, which prevented buyers there from getting behind the wheel of new cars. "As we go through 2015, Russia will continue to be a headwind," GM’s Chief Financial Officer Chuck Stephens said. "But we've taken and will continue to take aggressive action to mitigate those issues."

Worker layoffs, pricing adjustments, and new plans to shut down the St. Petersburg assembly plant for two months were made to cushion the blow from the weaker ruble.

Source: General Motors

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