General Motors reported record profits for last year, both for the fourth quarter and for the whole year, pushed by the strong US sales, as well as by China.
General Motors announced a record 2015 net income of 9.7 billion dollars, or 5.91 dollars per share, up from 2.8 billion dollars, or 1.65 dollars per share in 2014. Full-year earnings before interest and tax (EBIT) adjusted rose to 10.8 billion dollars, up from 6.5 billion dollars a year earlier. “It was a strong year on many fronts, capped with record sales and earnings, and a substantial return of capital to our shareholders,” Chairman and CEO Mary Barra said. The annual net income achievement was mainly due to the fact that GM closed the year with a strong fourth quarter, in which the automaker returned 6.3 billion dollars, or 3.92 dollars per share, up from 1.1 billion dollars, or 0.66 dollars per share during the fourth quarter of 2014.
The driver behind the company’s earnings remained the US market, where the SUVs and pickups sales significantly increased last year. Profit in North America rose to 2.8 billion dollars from 2.2 billion dollars a year earlier. The record figures will get GM employees a big pay, as through collective bargaining, eligible UAW employees will receive up to 11,000 in GM profit sharing.
As for the other important regions, GM lost again money in Europe, where the automaker has been trying to turn around the outcome for more than 15 years. It lost 813 million dollars in the region, compared with 1.3 billion dollars in 2014. In South America, the gap widened to 622 million dollars from 180 million dollars a year earlier. GM marked a slightly increase in China, from 1.2 billion dollars in 2014 to 1.4 billion dollars last year.