And the automotive ad sector growth can give a lot of credit to it as well: General Motors earned $4.7 billion last year, its first full-year profit in six years. It was a major recovery from the $4.4 billion GM lost in 2009 in the months after emerging from 40 days of bankruptcy. Revenue for FY 2010 was $135.6 billion and $36.9 billion for Q4. The FY profit was equal to $2.89 a share, slightly higher than some analysts’ estimates.
GM also will pay out profit sharing checks to 45,000 hourly workers of about $4,300. Another 3,000 workers at GM Components Holdings will get about $3,200.
“It’s the best year of profitability I can see in over a decade,” GM CFO Chris Liddell said, speaking to reporters at GM’s HQ in downtown Detroit.
GM CEO Daniel Akerson turned the automaker into a smaller, more streamlined company capable of earning big profits, post bankruptcy and government bail-out.
GM’s profit results were on the low side of some analysts’ expectations and mark the first annual earnings for GM since the automaker returned to the public markets in November.
Despite the strong earnings, GM’s stock hit a new low 2/24 of $32.75 a share, dragged down by overall volatility in the oil and financial markets due to the turmoil in Libya. This is the first time the automaker’s stock has dipped below its initial offering price of $33 a share.
Akerson did warn they are not out of the woods. Remember, the automaker racked up $88 billion in losses over a five-year period prior to bankruptcy and must continue to pay down debt and remain vigilant about keeping costs in check.