GM recall costs sees GM 2014 profit fall by 26 percent to $2.8B, General Motors today posted its Q4 earnings way above analysts’ expectations. Because of the GM recalls the year would have been an amazing on with high profits.
The U.S automaker made $1.19 per share, which actually beats analysts’ estimates of $0.83 per share.
Net income went up to $1.1 billion, or $0.66 a share, from $900 million, or $0.77 a share, a year prior. GM said it plans to pay 48,400 full-time UAW union workers a yearly reward of up to $9,000.
North American overall revenues for the full year were 6.5 percent. GM said, barring the extra expenses for a record vehicle review in 2014, the edge would have been 8.9 percent.
For a significant part of the previous year, GM has been involved in an outrage encompassing reviews of autos for flawed ignition switches. The automaker has put aside between $400 and $600 million to pay victimized people and families through a reward fund, which quit accepting applications on January 31.
The GM news report also goes into detail about the ‘pension update, ‘cash flow and liqidity’, as well as ‘segment results’ and ‘Full year results’.