GM earnings jump on strong North America, tax benefit
(MENAFN- AFP) General Motors reported a huge jump in fourth-quarter earnings on strong operating profits in North America and a big tax valuation benefit in Europe.
Earnings for the quarter ending December 31 were $6.3 billion, more than triple the $2.0 billion in the year-ago period.
Revenues were flat at $39.6 billion.
GM, riding the wave of a booming auto market in the US, said operating profits in North America were $2.8 billion, up 25.4 percent from the year-earlier period. These gains offset operating losses in South America and Europe.
Results were also boosted by a $3.9 billion non-cash benefit on the valuation of some deferred tax assets in GM Europe.
"It was a strong year on many fronts, capped with record sales and earnings, and a substantial return of capital to our shareholders," said chief executive Mary Barra.
"We continue to strengthen our core business, which is laying the foundation for the company to lead in the transformation of personal mobility."
Quarterly earnings translated into $1.39, 18 cents above analyst expectations.
Full-year earnings were $9.7 billion, up from $3.9 billion in 2014.
GM shares rose 1.2 percent to $30.01 in pre-market trade.
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