GM Reports Biggest Profit in Three Years
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General Motors Corp. reported net income of $950 million, its second quarterly profit in two years, as increased auto sales and reduced labor costs offset a loss at a mortgage unit. Net income in the fourth quarter was $1.68 a share, compared with a loss of $6.6 billion, or $11.63, a year earlier, the Detroit automaker said in announcing the twice-delayed results yesterday. Operating profit missed analysts’ estimates by 90 cents a share as loan defaults led to a loss at ResCap, a unit of the GMAC financing division. The profit was the biggest in almost three years as the chief executive officer, Rick Wagoner, benefited from closing plants, eliminating jobs, and trimming health-care spending to overcome more than $12 billion in losses in 2005 and 2006. GM has been losing American market share as buyers shift to sport-utility vehicle and car models that favor Toyota Motor Corp. and other rivals.
