GM’s 4Q Profits Zoom to $6.3 Billion

General Motors Co. reports its revenue in the fourth quarter last year was flat at $39.6 billion. But net income—freed from valuation allowances on certain deferred tax assets in Europe—surged to $6.3 billion from $1.1 billion in October-December 2014.

Fourth-quarter earnings before interest and taxes grew 17% to a record $2.8 billion.

By region, pretax profits in October-December surged 25% to $2.8 billion in North America and climbed 12% to $573 million in China. Losses in Europe narrowed to $298 million from $393 million. In South America, the company swung to a pretax loss of $47 million from a profit of $89 million in 2014.

Worldwide retail sales for the quarter rose 7% to 2.72 million vehicles. Growth was driven by increases in Asia Pacific/Africa/Middle East (+17% to 1.36 million units) and North America (+9% to 927,000 units). Volumes fell in Europe (-7% to 277,000 units) and South America (-33% to 159,000).

For the full year, GM’s net income and adjusted EBIT zoomed to $9.7 billion and $10.8 billion, respectively. Both are record highs. Revenue slipped 2% to $152 billion, hit by $9.3 billion in unfavorable currency exchange rates.

Retail sales of the company’s cars and trucks last year totaled 9.96 million units, up only 33,000 units. Wholesales shrank 3% to 5.88 million vehicles on declines for all markets outside North America.

Full-year results were carried primarily by booming demand for GM’s trucks and SUVs in North America and crossover vehicles in China. GM expects more of the same this year, predicting a “strong” U.S. auto market for several more years.