Solid GM Earnings Lead To Large Profit Sharing Checks
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DETROIT (WWJ) - General Motors 2012 earnings fell from the prevoius year, because of problems in Europe, higher taxes and one time charges. But a strong performance in North America will lead to profit sharing checks averaging $6750.
GM earned $4.9 billion in 2012, compared to $7.6 billion in 2011. Still, after many years of losses, it’s General Motors third consecutive annual profit.
Interview: GM Cheif Financial Officer Dan Ammann talks with WWJ’s Jeff Gilbert.
“We recorded another solid year in 2012 as we grew the business, delivered a third straight year of profitability and took significant actions to put the company on a solid path for future growth,” said GM CEO Dan Akerson.
GM’s profit-sharing is off slightly from 2011, when workers received checks averaging $7000. The profit-sharing is based on GM’s earnings here in North America, $7 billion in 2012, vs. $7.2 in 2011.
“We had a good year in North America in 2012,” said GM Cheif Financial Officer Dan Ammman. “We have a very good profit-sharing outcome for our North American employees, which is great.”
Ammann said 2012 laid the groundwork for the coming year, which should see a lot of progress.
“Really 2013 is going to be an exciting year for GM,” he said. “This is really the year we’ve been waiting for from a product launch point of view. We’re turning over 70 percent of our portfolio here in North America.”
The company is still working to turn things around in Europe, where it posted $1.8 billion in losses last year. GM has said it doesn’t expect to break even in Europe until mid-decade.
The company does not expect to make any mandatory contributions to its pension plan this year, but may consider voluntary contributions.
As GM heads into 2013, there remain concerns about looming decisions on debt and taxes in Washington, and the overall economy.
“We see steady progress in the American economy at this point in time,” said Ammann. “Clearly, there are still risks out there, depending on what happens in Washington and elsewhere.”
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