GM reports strong profits on good sales of pricier vehicles

GM reports strong profits on good sales of pricier vehicles

GM reports strong profits on good sales of pricier vehicles

General Motors President Mark Reuss unveils the Chevrolet Silverado HD at Flint Assembly, Feb. 5 in Flint, Mich. Pickups from the Detroit automakers were the three top-selling vehicles in the US last year, totaling more than 2 million in sales.

The profits are being announced as GM lays off about 4,300 white-collar workers, many of them at its giant technical center in Warren, Mich. About 2,200 took retirement offers, and the company let go of another 1,500.

While GM has been praised for reducing costs, lawmakers have been critical of General Motors for closing plants and laying off thousands of workers.

The company plans to eliminate about 6,000 factory worker jobs by closing three vehicle assembly plants and two other factories.

But 2,700 USA workers will be offered jobs at other factories. The firm's quarterly revenue was up 1.8% on a year-over-year basis. Without special items for restructuring, the profit was $6.54, beating Wall Street expectations of $6.29.

The largest USA auto maker in terms of sales said pretax profit excluding one-time factors for the October-to-December period was $2.8 billion, or $1.43 a share, surpassing the average analysts' estimate of $1.24 a share. The auto manufacturer reported $1.43 earnings per share for the quarter, topping analysts' consensus estimates of $1.21 by $0.22.

The Trump administration's tariffs on imported aluminium and steel raised prices of those commodities, costing the company more than US$1 billion a year ago.

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Meanwhile, GM Financial generated 2018 full-year earnings before tax of 1.9 billion dollars, up 58.3 percent compared with 2017.

'GM delivered another strong year of earnings in a highly volatile environment in 2018. The turnover of GM amounted to 147 billion dollars. She said GM cut costs in other areas to mitigate the impact.

China was a weak spot in the final three months of last year, however, with operating profit in the country falling by almost 40 per cent compared with a year earlier.

Shares of NYSE GM traded down $1.25 during trading on Thursday, reaching $38.66. Its income from the region fell to US$307 million in the quarter from $504 million a year earlier.

The shares of General Motors Company (NYSE:GM) has been pegged with a rating of Neutral by Goldman in its latest research note that was published on September 11th, 2018. The business had revenue of $38.40 billion for the quarter, compared to the consensus estimate of $36.31 billion.

General Motors is leaving Europe to combat slumping sales, which appeared to help GM profits. 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.

"We are very concerned about GM's worsening vehicle sales trends ... and the company's exposure to a slowing China market, which we think could challenge the company's ability to hit their full-year earnings guidance", he added.

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