General Motors Corp. (GM: chart) reported $181 billion in revenues for 2007, declined from $206 billion in 2006. Fourth quarter net loss was $722 million, or $1.28 per share, compared with a net income of $950 million in the same quarter year-ago.

2007 calendar-year adjusted net loss, excluding special items, of $23 million, or $.04 per diluted share. This compares to adjusted net income of $2.2 billion, or $3.84 per diluted share in 2006, as gain in automotive business was offset by large losses at GMAC, recently sold financing arm of the company.

Including special items, the company reported a loss of $38.7 billion, or $68.45 per diluted share, compared to a reported loss of $2 billion, or $3.50 per diluted share in 2006. The loss is almost entirely attributable to the non-cash $38.3 billion special charge in the third quarter related to the valuation allowance against deferred tax assets.

GM''s core automotive business generated record revenue of $178 billion in 2007, a $7 billion improvement over 2006, aided by growth in emerging markets and favorable foreign exchange against a weaker U.S. dollar.

In total, GM generated $181 billion in revenue in 2007, compared with $206 billion in 2006, the decrease in revenue in the last year is due to the non- consolidation of GMAC revenue, following GM''s sale of 51% of GMAC in November of 2006.

In the fourth quarter 2007, GM posted adjusted net income of $46 million or $.08 per diluted share, compared to adjusted net income of $180 million, or $.32 per diluted share in the year-ago period.

Including special items, the company reported a net loss of $722 million, or $1.28 per diluted share in the fourth quarter 2007, compared to net income of $950 million, or $1.68 per diluted share in the year-ago period. The fourth quarter results reflect a $1.6 billion tax benefit in continuing operations.

Special Charges

Special charges recorded in the fourth quarter totaled $768 million, including an $805 million adjustment principally related to a favorable tax item related to the gain on the sale of Allison Transmission, which was offset by $622 million in charges associated with GM''s support of Delphi''s restructuring efforts, $552 million for pension benefits provided to Delphi employees and retirees and $290 million in other restructuring-related charges.

Automotive Operations

GM reported revenue of $47.1 billion in the fourth quarter versus $50.8 billion in the year ago period, with the decline more than accounted for by the exclusion of GMAC revenue starting December 1, 2006.

Revenue from automotive operations totaled $46.7 billion in the quarter, a $3 billion increase over the prior year and a new quarterly revenue record, reflecting strong growth in Latin America, Asia Pacific and Eastern Europe.

GM''s global automotive operations posted adjusted earnings before tax of $553 million in 2007 (reported loss of $1.9 billion), compared to an adjusted loss before tax of $339 million in 2006 (reported loss of $6.1 billion). In the fourth quarter 2007, GM''s automotive operations had an adjusted loss before tax of $803 million (reported loss of $1.2 billion), compared to adjusted earnings before tax of $8 million in the year-ago quarter (reported loss of $111 million).

GM''s worldwide vehicle sales increased 3%, or 277,000 units, to 9.4 million vehicles in 2007, marking the second best year in units sold in the company''s 100-year history.

For the third consecutive year, a majority of the company''s sales - almost 60% - were outside of the U.S.

GM North America (GMNA) posted an adjusted loss before tax of $1.5 billion for 2007 (reported loss of $3.3 billion), compared to a loss before tax of $1.6 billion in the year-ago period, excluding special items (reported loss of $7.5 billion). GMNA had an adjusted loss before tax of $1.1 billion in the fourth quarter (reported loss of $1.3 billion), compared to an adjusted loss before tax of $129 million in the fourth quarter 2006 (reported loss of $30 million).

Losses for the year in GMNA were largely attributable to a softer U.S. market, and the reduction in dealer inventory by approximately 150,000 units and lower sales of daily rental vehicles by about 110,000 vehicles in the U.S.

GM reached its structural cost reduction target of $9 billion in North America in 2007 versus 2005, a key part of reducing global automotive structural cost as a percent of revenue from 34% in 2005 to 29.7% in 2007.

GM expects to derive additional structural cost savings of $4 billion to $5 billion by 2010 in the U.S. as it fully implements the 2007 GM-UAW contract, including the independent healthcare trust. These savings will help GM reach its goal to reduce structural cost as a percent of revenue to 25% of revenue by 2010, and further to 23% of revenue by 2012.

GM Europe (GME) posted its second consecutive year of adjusted profitability in 2007 with earnings before tax of $55 million (reported loss of $524 million), down from earnings before tax of $357 million in 2006, excluding special items (reported loss of $297 million).