GM Profit Surges 89% in Fourth Quarter

General Motors Co. net earnings soared to $892 million in the final three months of 2012 from $472 million a year earlier as big gains in China overcame sharp losses in Europe.

GM revenue grew 3% year over year to $39.2 billion in the latest quarter. Worldwide vehicle deliveries rose 4% to 2.33 million units.

In the October-December period, operating income slid 7% from a year earlier to $1.4 billion in North America but jumped 27% to $473 million at GM's international unit, which includes Asia Pacific and Africa.

The company's fourth-quarter operating loss deepened to $699 million in Europe from $562 million a year earlier. Its South American unit swung to a $99 million profit from a $225 million loss.

For the full year, GM's net earnings fell to $4.9 billion from $7.6 billion in 2011. Last year marked the company's third straight year of profitability since its bankruptcy in 2009.

Revenue edged up 1% year over year to $152.3 billion in 2012. Deliveries advanced 3% to 9.29 million vehicles.

Results by region include:

NORTH AMERICA: Revenue climbed to $94.6 billion from $90.2 billion in 2011. Sales volume grew 3% to 3.02 million vehicles. The region's operating profit contracted 3% to $7 billion as higher vehicle launch costs offset an improved in product mix.

GM North America boosted its capacity utilization by 1.9 points to 97.5% last year.

In 2013, the company expects a moderate improvement in its U.S. market share, which tumbled 1.7 points to an 88-year low of 17.5% in 2012.

EUROPE: Revenue dropped 18% to $26.8 billion, and deliveries shrank 8% to 1.61 million vehicles.

The unit's operating loss deepened to $1.8 billion from $747 million loss in 2011. Its 2012 deficit included a $6.4 billion writedown of European assets including a $220 million writeoff of the 7% stake of PSA Peugeot Citroen that GM bought for $400 million last March.

GM Europe's restructuring included a 2,500-job reduction in its workforce last year.

The company confirms that it expects its results in the region to be "slightly better" this year.

SOUTH AMERICA: Revenue was flat at $17 billion. Volume slipped 2% to 1.05 million vehicles. The unit swung to a $271 million operating profit from a $122 million loss in 2011.

INTERNATIONAL: Revenue climbed 12% year over year to $27.7 billion. Sales rose 10% to 3.62 million vehicles, buoyed by an 11% gain to 2.84 million units in China. The unit's operating earnings jumped 15% to $2.2 billion.

GM FINANCIAL: The company's auto-lending arm hiked operating income 22% to $744 million.

GM ended 2012 with automotive cash of $26.1 billion. The $5.5 billion decline from a year earlier matches the company's cash outlay in December to repurchase 200 million of its shares from the U.S. government.

For 2013, GM confirms its earlier forecast of a modest profit increase, as strong sales in China and the U.S. are partially offset by the cost of launching 25 new or revamped models worldwide.