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GM Reports $3.8 Billion Net Income for 2013, Less Than 2012 Profits

Motor Trend logo Motor Trend 2/6/2014 Erick Ayapana

General Motors today released its financial report for calendar year 2013, which shows a net income of $3.8 billion, down from the $4.9 billion it made in 2012. GM’s revenue actually increased by 2 percent to $155.4 billion, but a number of factors contributed to the drop in net profit.

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GM’s European arm, for example, is still in the red, reporting a pre-interest and tax loss of $800 million, though it’s an improvement over the $1.9 billion it lost in 2012. The company incurred a number of restructuring costs in the region, including the $700 million it spent to pull Chevrolet out of Europe. The automaker’s International Operations, which covers most of Asia, slid a bit, earning $1.2 billion in 2013 versus $2.5 billion the previous year. Earning $300 million last year was GM’s South American division, a drop of $200 million from 2012.

There’s better news from North America, where GM earned $7.5 billion last year, a $1 billion improvement from 2012. In the fourth quarter of 2013, GM North America’s income before interest and taxes was $1.9 billion, compared to $1.1 billion earned in the fourth quarter of 2012. Looking forward, GM estimates it will spend $1.1 billion this year for restructuring costs, and hopes to offset most of that with strong performances from its North American and Chinese operations.

“Launches of some of the best vehicles in our history combined with significant improvements in our core business led to a solid year,” GM CEO Mary Barra said 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’s domestic competitors reported more favorable earnings for 2013, with Ford profiting $7.2 billion (better than the $5.7 billion in 2012) and FiatChrysler Automobiles netting $1.8 billion, which is a 9-percent improvement over the previous year.

Source: GM

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