General Motors (GM) missed earnings expectations and posted losses in Europe and South America in the fourth quarter, even as the company posted another strong quarter of North American sales. Shares rose 4.3% in early trading.
GM reported 39 cents of core EPS, two cents below analysts’ expectations. The company reported losses of about $562 million in Europe and $225 million in South America, but earned $1.5 billion in the U.S. The company also saw a shift in sales in the fourth quarter — in North America, it sold 286,000 cars and 453,000 trucks, versus 240,000 cars and 463,000 trucks in the fourth quarter of 2010.
Truck sales tend to have higher margins. This “mix shift” could persist into 2012, and hurt earnings.
In a preview of early first quarter results, GM reported that its U.S. market share fell from December to January.
For more: GM Jumps as North American Sales Rise; Europe and South America Lag - Stocks To Watch Today - Barrons.com
No comments:
Post a Comment