Saturday, 23 February, 2019

General Motors Q4 results: shares up after beating earnings revenue estimates

GM's Resilient Profit Shows Why CEO Mary Barra Decided to Cut Jobs GM hourly workers to get profit-sharing checks up to $10,750 this year
Nellie Chapman | 08 February, 2019, 17:57

Based on the 2018 full-year results for the company's North America business, General Motors over 46,500 U.S. hourly employees would receive a profit sharing payment of up to US$10,750, getting on for twice what the Mercedes makers are getting in April. The latest payment will come in the February 22 paycheck.

The reorganization will also result in involuntary layoffs to about 4,000 GM salaried workers, a person familiar with the matter told AFP last week. Including the introduction of the pick-up trucks Chevrolet Silverado and GMC Sierra helped the company.

Almost 950 workers from locations in MI and OH have accepted transfer opportunities to other GM locations in the USA, the company said.

Shortly after General Motors confirmed the layoffs of thousands of workers at several plants across the country, the automaker announced it's bringing 1000 new jobs to a MI assembly plant.

The last day for workers at the Lordstown facility, where the Chevrolet Cruze is produced, is March 8. During the same quarter in the prior year, the company posted $1.65 earnings per share. The auto manufacturer reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.22.

Chief Financial Officer Dhivya Suryadevara said GM said it made $2 billion on its joint venture in China last quarter, despite slowing auto sales in the country.

Shares of NYSE GM traded down $1.25 during trading on Thursday, reaching $38.66.

GM earnings per share was $1.43, more than the predicted $1.22. Losses at the GM Cruise self-driving-car unit widened to $728 million last year and will probably cost the automaker $1 billion this year. The turnover of GM amounted to 147 billion dollars.

"GM delivered another strong year of earnings in a highly volatile environment in 2018", Chief Executive Mary Barra said in a statement.

New vehicle sales in the United States are widely expected to decrease during the current year as a result of higher interest rates and competition from a superfluity of less expensive, nearly-new used vehicles on the market. GM is taking actions to cut costs in China to improve profits in a softening market, Suryadevara said. Its income from the region fell to US$307 million in the quarter from $504 million a year earlier.

General Motors Company (NYSE:GM) as of current trade, has shown weekly performance of 2.16% which was maintained at 17.91% in one month period. The business had revenue of $38.40 billion during the quarter, compared to analysts' expectations of $36.31 billion.

Earlier Wednesday, Toyota Motor Corp posted a slightly higher profit as demand for its bread-and-butter auto models from cost-conscious Chinese buyers helped offset weak North American sales of its marquee sedan models such as the Corolla and Camry. During the trading session, a total of 16.88 million shares were traded which represents a -40.98% decline from the average session volume which is 11.97M shares.