General Motors takes a one-time hit of $5.2bn due to US tax reform
New York — A huge one-time charge for US tax reform pushed General Motors (GM) quarterly earnings into the red, but the vehicle maker said on Tuesday that earnings were better than expected when the tax hit is excluded. GM reported a net loss of $5.2bn in the fourth quarter due to a $7.3bn non-cash charge from the remeasurement of deferred tax assets because of US tax reform — a change other major companies have also had to contend with. Revenues in the final quarter fell to $37.7bn, down 5.5% from the same period a year earlier. The tax impact also led to an annual loss of $3.9bn, after solid profits in 2016. But GM pointed to strong sales in the US, China and South America that helped it achieve higher operating earnings compared with the fourth quarter of the prior year. The vehicle maker reported a dip in North American car sales overall, where the US market in 2017 retreated from the record-setting performance of 2016, but remained at a high level. Car sales rose significantly ...
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