“Behind the scenes, we are working hard to eliminate complexity and cost throughout the organization to increase margins in all of our regions, and return Europe and South America to profitability,” said Dan Ammann, CFO.
General Motors Company (NYSE: GM) announced this morning a 2011 calendar-year net income of $9.1 billion, with $7.6 billion of that attributable to common stockholders, or $4.58 per fully diluted share, up from $4.7 billion, or $2.89 per share, in 2010. Revenue for the world’s largest automaker increased 11% to $150.3 billion, compared with $135.6 billion in 2010 on sales of more than 9 million vehicles. GM full-year earnings before interest and tax (EBIT) adjustments was $8.3 billion, compared with $7.0 billion in 2010.
The GM results were modest at 5.5% of revenues, coming after GM’s first full year as a publicly traded company, and a year where Japanese automakers were out of the market for six or more months because of natural disasters. Both the CEO and CFO stated the obvious more than once when talking with reporters that there was much more work to do. Troubling was the fact that profits were based almost entirely on North American net results of $7.2 billion. Based on GMNA’s 2011 financial performance, the company will pay profit sharing of up to $7,000 to approximately 47,500 eligible GM U.S. hourly employees. GM Europe and South America lost money, $700 million and $100 million respectively. GM International Operations made $1.9 billion, down $400 million from 2010. No dividend was declared.
GM’s latest results will no doubt add more fodder as the elite political ruling class continues a contentious debate about the proper roll of government in the weak U.S. economy in general, with the $80 billion auto bailout one of the focal points. One wag suggested that Democrats should run on “Bin Laden is Dead, GM is Alive.”
Taxpayers still own 32% (~27% fully diluted) of GM after the U.S. Treasury sold 28% of its holding in November of 2010. Therefore, the government still has a substantial position in what remains the country’s largest and the world’s largest automaker measured by sales.
The other bailout automaker, Fiat-owned Chrysler, also posted a profit in 2011 – $183 million. Ford Motor Company, which did not receive a taxpayer bailout but was given $5.9 billion in taxpayer subsidies from the Department of energy to retool plants, made $8.8 billion for the year.
GM ended the year with total automotive liquidity of $37.5 billion compared with $33.5 billion in 2010. Automotive cash and marketable securities was $31.6 billion compared with $27.6 billion at the end of 2010.
