[BTM]

Originally Posted by WSJ

By SHARON TERLEP

Two years after filing for bankruptcy protection, General Motors Co. posted 2010 results that were its strongest annual performance in more than a decade and forecast further growth this year.

GM earned $4.7 billion for the year, its first annual profit since 2004 and its best yearly performance since 1999 when the sport-utility-vehicle craze fueled earnings. Results marked a dramatic turnaround since GM's crack-up two years ago and re-assembly through a U.S. government bailout and a whirlwind trip through bankruptcy-court.

The auto maker's rebound comes amid a broader auto-industry recovery. Dealers and parts suppliers are showing a steady recovery, and rival Chrysler Group LLC, which also was bailed out, has narrowed its losses and forecasts a profit this year.

GM said its turnaround was driven by sharply lower costs and improved sales amid a recovery in U.S. auto demand. Chairman and Chief Executive Daniel Akerson said he expects stronger results for 2011 while cautioning of pressures ahead. Gas prices have risen "a little bit earlier, maybe, than the industry or the economy or the world economy expected," he said. "We're going to have to react."

The final quarter produced the year's slimmest profit as GM cranked up spending on new-vehicles, scaled-back output of higher-margin trucks and incurred higher costs, in part, on November's initial public offering of shares.

GM increased sales-incentive spending in January to the highest level in two years. The increased spending "was a result of targeted programs to maintain momentum in the slow months," finance chief Chris Liddell said on Thursday.

Rest of article: http://online.wsj.com/article/SB1000...toryCollection