GM reports profit of $2.8 billion

DETROIT

If it weren’t for the recalls, 2014 would have been a stellar year for General Motors.

Even with $2.8 billion in pretax costs to fix more than 30 million recalled vehicles and $400 million set aside for death and injury claims, GM still managed to turn a $2.8 billion profit.

That’s because otherwise, most of the stars lined up well for the Detroit automaker. Gas prices dropped more than a buck to $2.26 per gallon. The U.S. economy gained steam. Cheap credit was abundant.

Combined, they sent buyers to GM’s newly redesigned and lucrative pickup trucks and large SUVs in North America, the company’s most profitable market. At the same time, chief competitor Ford’s truck plants were down much of the year while it switched to a new pickup with a risky aluminum body. Sales in China grew faster than the market. Worldwide sales were up 2 percent to 9.9 million vehicles, a record.

Things were so good, GM decided to increase its dividend next quarter by 20 percent, to 36 cents, pending board approval.

Yes, there was trouble in Europe, Russia and Latin America, but by and large, GM had a good year.

Its shares rose 4 percent in premarket trading Wednesday.

The company’s full-year earnings amounted to $1.65 per share. Net income was down 26 percent from $3.8 billion in 2013. But excluding one-time items, GM made $3.05, beating Wall Street’s expectation of $2.64, according to FactSet. Revenue rose slightly to $155.9 billion, beating the analysts’ prediction of $150.6 billion.