By Jeff Bennett
General Motors Co. reported a 91% jump in its fourth-quarter
profit, beating analyst expectations and capping a tumultuous year
for a chief executive wrestling to revive the giant auto maker.
The Detroit company said it plans to boost its dividend starting
in the second quarter. It will later this month pay about 48,000
U.S. hourly workers profit sharing checks of $9,000 based on its
2014 financial performance.
Fourth-quarter profit earnings before dividends rose to $1.99
billion compared with $1.04 billion a year earlier. Excluding some
charges, the company earned $1.19 a share, handily beating analyst
estimates of 83 cents a share. Revenue for the quarter was $39.6
billion, down somewhat from $40.5 billion a year ago. Net profit
after dividends increased to $1.11 billion compared with $913
million a year earlier.
GM said it also intends to raise its dividend starting in the
second quarter by 20% to 36 cents. The move must still be approved
by the auto maker's board of directors.
"Our intention to increase the dividend is consistent with our
balanced capital allocations strategy and reflects the confidence
we have in growing the strength of our business," Ms. Barra said in
a statement.
GM earnings come hours after Toyota Motor Corp. raised its
full-year net profit outlook by 6.5% to another record high of
Yen2.13 trillion ($18.1 billion)in fiscal year ending March. Toyota
continues continuing to reap the benefits of a depreciating yen and
strong U.S. auto market.
GM's fourth-quarter finish gives Chief Executive Mary Barra a
springboard heading into 2015. She now has cash in the bank, a
portfolio of new vehicles and is surrounded by a senior leadership
team with a year of working together under their belts. She must
now deliver on turning GM Europe profitable this year while closing
the gap with rival Ford Motor Co. when it comes to profit margins
in North America.
For the quarter, North America's operating profit jumped to
$2.21 billion from $1.88 billion as the company's profit margins
increased to 8.7% from 7.5% Much of that came from consumers
spending to buy the auto maker's new cars and trucks.
Europe's loss widened to $393 million from $363 million. The
results include Russia's financial performance, where the auto
maker has been slashing output amid currency fluctuations. For the
year, Europe lost $1.37 billion compared with $869 million.
In South America, rocked by economic turmoil, GM saw its
operating profit more than double to $89 million while
international operations increased to $396 million from $228
million.
Write to Jeff Bennett at jeff.bennett@wsj.com
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