Boston, MA 02/11/2014 (wallstreetpr) – General Motors Company (NYSE:GM) saw its fourth quarter profit slump by 13% in the fourth quarter something that Wall Street seem to be worried about. GM cited the slump in profits on the recent restructuring costs that has eaten on its cash balances with overseas operations t seeming not to be performing as expected. General motor total revenue for the fourth quarter came in at $1.04 billion down from $1.9 billion recorded in F2012 Q4. This is a massive drop considering Wall Street analysts had earlier expected earnings per share of $0.88 compared to $0.67 posted in the fourth quarter.
North America offering better returns
North America seem to be the only place that General Motors Company (NYSE:GM) is performing above estimates as it recorded revenues totaling $1.88 billion up from $1.42 billion recorded a year ago. North America for the year recorded total revenues of $7.5 billion above $6.5 billion that was recorded a year ago. This were record earnings brought about by stronger models that were sold at the back of enticing incentives
Europe not the best of places for GM
Europe has not been the best market place for GM brand of vehicles as it has continued to be a money pit. The surprise is that General Motors Company (NYSE:GM) continues to operate in this market despite recording losses totaling $19 billion since 1999. The trend in the recent past seem to be improving considering the company only lost $345 million last year compared to a loss of $761 million in F2012.
Another point of concern, eating analyst at Wall Street is the decline in revenue in Asia and Africa which dropped from highs of $676 million earned in F2012 to lows recorded in F2013 of $208 million.
The key factors that made GM miss its mark were higher taxes that were imposed on its operation and extreme overseas restructuring.
General Motors Company (NYSE:GM) dropped on Monday trading session by 3.35% to clock lows of $34.90 a share
