General Motors beats the Street with fourth-quarter report card

Automotive giant General Motors beat Wall Street expectations on Tuesday, as cost-cutting and higher vehicle prices helped to offset a double-digit decline in sales volume during its fourth and final trading quarter.

Efforts made by GM to cut costs associated to its popular SUVs and pickup trucks in North America saw the group's pre-tax margin rise to 8.2% in the three months leading to 31 December from the 6.5% reported in the same quarter a year earlier.

GM said results had improved across all segments, with its South American division finally returning to profitability during the second half of the year.

Revenue for the quarter fell from $39.9bn to $37.7bn but managed to beat analysts' expectations of $36.6bn, despite having sold 135,000 fewer vehicles in North America than it had during the previous fourth quarter.

GM posted a quarterly loss of $4.9bn, or $3.46 per share, versus the profit of $2.1bn a year earlier.

The automaker announced earnings per share of $1.65, again beating analysts forecasts calling for earnings per share of $1.38.

GM also reported a $7.3bn non-cash charge for the quarter thanks to deferred tax assets that would soon lose their value as a result of the recently-enacted lower US corporate tax rate.

"The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year. We will continue executing our plan and reshaping our company to position it for long-term success," said Mary Barra, chief executive officer of General Motors.

"Improvements in all operating segments and an intense focus on cost reductions generated a record quarter and another record year. We plan to build on this momentum in 2018 and beyond as we focus on growth opportunities across many parts of our business," said Chuck Stevens, GM's chief financial officer.

As of 1700 GMT, shares had gained 3.44% to $40.92 each.