Steel Products
GM Earnings Nearly Double in Q4 Despite European Losses
Written by Sandy Williams
February 15, 2013
Written by: Sandy Williams
General Motors nearly doubled its fourth quarter earnings while posting big losses in Europe.
GM reported fourth quarter earnings of $898 million, up from $468 million in the same period in 2012 due in part to a variety of gains from special items. A number of one-time accounting gains and losses accounted for a $100 million increase.
Net income for 2012 was $4.9 billion, down 36 percent from $7.6 billion in 2011 but its third consecutive year of profit.
North American sales provided GM its quarter profit, offsetting European losses. GMNA sales were up slightly in fourth quarter to 735,000 from 712,000 at the end of 2011. Annual sales for 2012 were 3,019,000, up from 2,925,000 in 2011. U.S. sales for fourth quarter were 628,000, up from 602,000. GM sold 2,596,000 vehicles in the U.S. in 2012—an increase of 92,000. GMNA reported EBIT of $1.4 billion in the fourth quarter.
European losses were worse than expected, widening to $699 million pre-tax in the fourth quarter from $572 million in 2011. Overall, GM lost 1.8 billion in its European sector in 2012, more than double its 2011 losses. GM does not expect improvement in Europe for 2013 and said it hopes to break even in Europe by mid-decade. In the meantime, it is restructuring its Europe assets, including plans to close one plant, and introducing 23 vehicles over the next years.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products

Asian HR remains much cheaper than US, EU product
Domestic hot-rolled (HR) coil prices were flat this week after declining seven of the last nine weeks. Offshore prices have also eroded in recent weeks, though not nearly as significantly as in the US.

Galv buyers less optimistic about short-term market
“It was a little more of a seller's market as contractors seemed to be protecting themselves against a potential run up in prices," one buyer said.

SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]

US, offshore CRC prices continue to fall
US cold-rolled (CR) coil prices were down again this week, slipping six weeks in a row and seeing the sharpest drop-off since last July.

Asian HR remains much cheaper than US, EU product
Domestic hot-rolled (HR) coil prices fell this week, now down seven of the last eight weeks.