Two monkeys

6 February 2014 By Antony Currie Follow @AntonyMCurrie

The automaker missed Q4 estimates by a mile. Some overseas markets are a concern, but most of the shortfall stems from restructuring charges, not a slump in business. These ought to have been known in advance. Either GM’s failing to communicate or analysts aren’t listening.

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General Motors reported fourth-quarter net income of $913 million, or 57 cents a share. Excluding a net hit of $200 million from special items, earnings were 67 cents a share compared with the consensus estimate of sell-side analysts of 88 cents a share.

Special items included a $700 million charge for closing the Chevrolet brand in Europe, an $800 million impairment charge on property and intangible assets and $400 million of goodwill impairment charges.

Partly offsetting these were a $200 million gain from the sale of GM’s stake in Peugeot, a $500 million gain from the sale of its stake in Ally Financial, a $600 million gain related to litigation on wages in GM Korea and a $500 million gain from tax settlements.

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