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GM Nets $3.8 Billion for 2004
"DETROIT -- Consolidated net income for 2004 at General Motors Corp. was $3.7 billion, or $6.51 per share, compared with $3.8 billion, or $7.14 per share, in 2003, officials reported earlier today. On an adjusted basis, earnings from continuing operations were $3.6 billion, or $6.40 per diluted share, led by record earnings from financial services and a 12% improvement in automotive earnings.The automaker reported market-share gains in three out of four automotive regions in 2004, ending the year with a global market share of 14.5%, down slightly from 14.6% in 2003. "GM reported solid overall results in 2004 despite challenging competitive conditions in many markets around the globe," said Rick Wagoner, chairman and chief executive officer. "For the tenth-consecutive year, General Motors Acceptance Corp. reported annual earnings growth, posting a record profit of $2.9 billion. And, our automotive operations recorded their second-highest vehicle-sales volume in history, with market-share gains in three out of four automotive regions last year." GM's adjusted earnings from continuing operations totaled $569 million, or $1.01 per share in the fourth quarter of 2004, down from $838 million, or $1.47 per share in the fourth quarter of 2003. Including special items and discontinued operations, GM reported net income of $630 million, or $1.11 per share in the fourth quarter of 2004, down from $1 billion, or $2.13 per share in the year-ago period. Adjusted revenue rose 4.7% to $51.2 billion. GM's automotive operations earned $1.2 billion in 2004, up from $1.1 billion in 2003. Worldwide production totaled 9.1 million units in 2004, up from 8.8 million in 2003. GM's global automotive business reported earnings of $235 million in the fourth quarter of 2004, down from $396 million in the year-ago quarter. The latest fourth-quarter results reflect a significant improvement at GM's Latin America/Africa/Mid-East region and improved earnings at GM North America, offset by losses at GM Europe and reduced earnings at GM Asia Pacific. GM's market share in North America declined to 26.7% from 27.4% in 2003. GMNA earned $416 million in the fourth quarter of 2004, up from $397 million in the fourth quarter of 2003, as continued cost reduction and favorable tax settlements were partially offset by lower production volumes and unfavorable product mix. "While we fell short of our goal to gain market share in North America in 2004, we had a solid finish to the year," Wagoner said. "Sales volumes for our newest vehicles gained momentum throughout the year and we continued to make progress in the key areas of productivity, quality, and cost reduction." Among the highlights for 2004:GM set U.S. industry records in total truck and sport-utility-vehicle sales for the fourth-consecutive year and once again sold more full-size pickups than any other manufacturer.Chevrolet sold more passenger cars in the United States than any other brand and had its best sales year since 1988.Cadillac's U.S. sales rose 8.4% in 2004, marking its best annual sales performance since 1990.GMC sold a record 602,064 vehicles in 2004, the 11th time in a dozen years that GMC has established a new sales record."We're encouraged by the success of Cadillac, Chevrolet and GMC, and we're determined to build on that success with our other brands," Wagoner said. "In 2005, our product portfolio includes a number of new high-volume vehicles that are continuing to ramp, such as the Pontiac G6, the Chevrolet Cobalt, the Buick LaCrosse and the Cadillac STS. In addition, we are also introducing later this year the Pontiac Solstice, the Hummer H3, the Chevrolet HHR and the Cadillac DTS, among others." GM's U.S. hourly and salaried pension plans were $3 billion over-funded at the end of 2004, a significant improvement from the previous year when the plans were $300 million over-funded. Approximately 119,000 hourly employees in the United States will receive a profit-sharing payment this year. A typical U.S. hourly employee, eligible under the profit-sharing program, would qualify for a payment of approximately $195.GM expects 2005 earnings to be approximately $4 to $5 per share, excluding any special items and at current dilution levels. The company expects to increase global sales volumes, generate $2 billion in operating cash flow and increase capital expenditures to approximately $8 billion in 2005."