General Motors reported a huge jump in fourth-quarter earnings today on strong operating profits in North America and a big tax benefit in Europe.
Earnings for the quarter ending December 31 were USD 6.3 billion, more than triple the USD 2.0 billion in the year-ago period.
Revenues were flat at USD 39.6 billion.
Some auto industry observers have said the booming US auto market could soon slow, but GM chief financial officer Chuck Stevens expressed confidence the good times will roll a while longer.
"We are well positioned for the downturn, we just don't think it's going to happen anytime soon," Stevens told reporters on a conference call.
"We believe that the industry fundamentals and the economic fundamentals specifically to the US are thus that we would expect to see a strong US industry for the next number of years."
Operating profits in North America were USD 2.8 billion, up 25.4 per cent from the year-earlier period. Car sales in North America rose 8.5 per cent in the quarter to 927,000 units, with big gains for sport-utility vehicles and pickup trucks.
In its international business, operating profits rose on growth in China which helped offset losses in South America and Europe.
Stevens confirmed that GM expects to break even in Europe in 2016 and suggested it sees no need for further job cuts in the region. Rival automaker Ford said today it would cut hundreds of jobs in Europe.
"We've got the right cost structure," he said. "Breaking even in Europe in 2016 is a company-wide focus and we feel very confident we're going to achieve that."
Results were also boosted by a USD 3.9 billion non-cash benefit on the valuation of some deferred tax assets in GM Europe.
Quarterly earnings translated into USD 1.39, 18 cents above analyst expectations.
Full-year earnings were USD 9.7 billion, up from USD 3.9 billion in 2014.
GM shares rose 1.8 per cent to USD 30.18 in pre-market trade.
