Mumbai: General Motors Corporation swung back to profit with a net income of $950 million in the fourth quarter as the world's largest automaker cut costs and reaped gains in its core operations.
GM posted net income of $950 million, or $1.68 per share, compared with a loss of $6.6 billion, or $11.63 per share, a year earlier. Revenue rose to $51.2 billion from $51.7 billion. Excluding one-time items, GM earned $180 million, or 32 cents per share.
GM, which had delayed its results from January, also restated net earnings going back to 2002, as it had said it would do because of accounting errors. After the restatement, GM's fourth-quarter net income marked its first profit since the first quarter of 2006.
Chief financial officer Fritz Henderson said GM cut its recurring costs by $6.8 billion in 2006, about $800 million more than it had initially planned. He said the savings came mostly through job cuts in its manufacturing operations, and some reduced spending in engineering and marketing.
Henderson said GM is on track to cut structural costs by $9 billion and expects an improvement in profitability and cash flow this year, but declined to provide details.
GM reported a $10.4 billion loss in 2005 after restating net income for the year. That loss prompted a restructuring that includes slashing more than 34,000 jobs and closing 12 plants
Among US-based automakers, GM is the furthest along in the turnaround. GM's profit contrasts with the performance of Detroit-area rivals Ford Motor Co. and DaimlerChrysler AG's Chrysler unit.
Ford reported a $12.7 billion loss in 2006, the worst deficit in its 103-year history, and Chrysler lost $1.5 billion.
GM in January had forecast a fourth-quarter profit without giving figures. GM is cutting costs after persuading 34,300 US union workers to leave early. It's shutting 12 North American facilities by 2009 to reflect shrinking US sales and market share shed to Japanese rivals Toyota Motor Corp. and Honda Motor Co.