General Motors Co’s ability to raise U.S. vehicle prices and better-than-expected pension brought the company shares up more than 6%.
Taking into consideration that GM lost $747 million in Europe last year, the stock rise was not bad. The fourth quarter brought the company mixed reviews and earnings roughly flat from the previous year.
“The results were ‘shaken, not stirred,’” Guggenheim Securities analyst Matthew Stover said in a research note. “In other words, they were a little worse than consensus but certainly not as bad as the worst case outcome.”
The company tries to focus on the two markets that dragged on fourth-quarter results, that is Europe and South America. To make a comparison, GM lost $225 million in South America, $562 million in Europe, but earned $1.5 billion in its home market.
In 2011 the company’s profit jumped 62% to $7.6 billion, being the company’s first full year of operations since 2010 when it was its initial offering. For 2012 GM expects sales to top the $150.3 billion made in 2011 and sees a flat global market share.
The fact that Pesident Obama chose to bailout GM and Chrysler in 2009, is still subject of political debate in the run-up of 2012 presidential election.
by Ana Cezara Savin
) - Friday, February 17th, 2012 - filed under General Motors
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