GM has 4-straight profitable quarters

February 25, 2011 at 12:00a.m.

Lordstown

With its 2010 year-end and fourth-quarter results, General Motors has achieved four consecutive quarters of profitability.

Because of that profitability, the company will issue checks of about $4,300 to 45,000 hourly employees and checks of about $3,200 to employees of GM Components Holdings, according to a company press release.

According to its website, GM Components Holdings, which operates as a subsidiary of General Motors, manufactures and distributes automotive components. Additionally, it offers heating, ventilation and air-conditioning climate-control systems, engine-management systems, powertrain cooling systems and valve-train products.

“I think [the hourly employees] have worked very hard and made a lot of sacrifices,” said Dave Green, president of United Auto Workers Local 1714, which represents workers at the fabrication plant at the Lordstown complex.

“Just because the government gave us money a couple years ago doesn’t mean our workers didn’t have to sacrifice, and I think they deserve it,” he added.

The automaker reported revenue of $135.6 billion in its first full-year results since declaring government-backed bankruptcy in 2009.

For 2010, net income was $4.7 billion. It was $0.5 billion for the fourth quarter.

For common-stock holders, earnings were $2.89 per diluted share for the year and $0.31 per diluted share for the quarter.

“Last year was one of foundation building,” Dan Akerson, chairman and chief executive officer, said in the press release. “Particularly pleasing was that we demonstrated GM’s ability to achieve sustainable profitability near the bottom of the U.S. industry cycle, with four consecutive profitable quarters.”

The company also reported $6.6 billion in automotive cash flow and $2.4 billion in automotive free cash flow for the year. Both totals reflect GM’s $4 billion voluntary cash contributions to U.S. employee pension plans.

Earnings before interest and taxes for GM’s North American division was $0.8 billion in the fourth quarter of 2010, compared with a loss of $3.4 billion in the fourth quarter of 2009.

Green said production at the Lordstown plant is booming.

“You’re going to see the Chevy Cruze doing real well. We can’t build them fast enough,” Green said. “It’s a quality car, and we’re proud of that.”