Special Items Cut GM Net Earnings 71%

General Motors Co.’s net revenue climbed 11% to $43.9 billion in October-December. But $6.3 billion in special items—mostly for reversed tax allowances in Europe—slashed net income 71% to $1.8 billion.

Adjusted earnings before interest and taxes dropped 14% to $2.4 billion in the period. Worldwide retail sales, including those by joint ventures, climbed 5% to 2.85 million vehicles, aided by a record 1.05 million units in December.

GM narrowed its fourth-quarter adjusted EBIT losses in Europe to $246 million from $298 million. Profits from GM Financial Co. in the same period grew 16% to $193 million.

But year-on-year results elsewhere fell short. Adjusted EBIT in October-December dropped 6% to $2.6 billion in North America. They fell 23% to $316 million in Asia Pacific, the Middle East and Africa. Losses in South America deepened 38% to $65 million.

For the full year, GM’s net income slipped 3% to $9.4 billion. But net revenue expanded 9% to $166.4 billion, and adjusted EBIT jumped 16% to $12.5 billion. Global retail sales advanced by half a percentage point to a record 10.01 million units.

GM predicts 2017 will bring higher revenue and stronger cash flow. The company also expects diluted earnings per share between $6 and $6.50 compared with $6 last year. GM anticipates its vehicle sales will surge 38% through 2020 compared with last year, thanks to new or refreshed models.