In its first full year as the new General Motors, the company posted a $4.7 billion profit for the year after emerging from bankruptcy protection and surviving a global economic meltdown.
Profits were driven by healthy volume in China and domestically and the automaker’s initial public offering.
For the full year, GM earned $2.89 per share on revenue of $135.6 billion. Shares of GM rose 17 cents, or 0.5 per cent, to $34.76 in premarket trading.
Revenue for the calendar year was $135.6 billion. Automotive cash flow from operating activities was $6.6 billion and automotive free cash flow was $2.4 billion, both reflecting the impact of a $4.0 billion voluntary cash contribution to the company’s U.S. pension plans.
“Last year was one of foundation building,” said Dan Akerson, chairman and chief executive officer, in a release today. “Particularly pleasing was that we demonstrated GM’s ability to achieve sustainable profitability near the bottom of the U.S. industry cycle, with four consecutive profitable quarters.”
Last year market the first profitable year for the slimmed-down company since 2004 and its best annual profit since in 1999.
Revenue for the fourth quarter of 2010 was also up beating analysts’ estimates at $36.9 billion.
As a result of GM’s 2010 financial performance, the company said it would pay profit sharing to approximately 45,000 eligible GM U.S. hourly employees, and approximately 3,000 eligible GM Components Holdings (GMCH) employees. The average payout per employee will be approximately $4,300 for GM employees and $3,200 for GMCH employees.
In addition, GM announced today that after assessing remediation actions that it put in place to address the company’s material weakness regarding the financial reporting process, the management team and Audit Committee of the Board of Directors concluded that the material weakness no longer exists as of December 31, 2010.
“Our focus for 2011 is to build on our progress and continue to generate momentum in the marketplace. We expect our first quarter will be a strong start,” said Chris Liddell, vice chairman and chief financial officer.