General Motors Co. (NYSE:GM)
Shares of General Motors ran up 6% before the opening bell Friday, after the automaker provided an upbeat earnings guidance for 2018 fiscal year. The company now expects adjusted earnings for the year to surpass its previous estimate of between $5.80 to $6.20 per share. In addition, it anticipates adjusted automotive free cash flow of $4 billion for the year.
For 2019, General Motors expects pretax earnings per share, adjusted for one-time items, to be in the range of $6.50 to $7.00 per share. Analysts are currently calling for adjusted earnings of just $5.92 per share, based on figures compiled by FactSet. The upbeat outlook was driven by strong market for GM truck and utility vehicles in the United States and solid sales in China.
GM Chief Executive Mary Barra said, “From a 2018 perspective, it is not only a focus on really capitalizing on the new trucks we have out there, the light-duty trucks, but also the focus on cost reduction so it was across the board. Every element of the company.”
The company also hopes to end 2019 with automotive free cash flow of between $4.5 billion and $6 billion. Full-year and fourth-quarter financial results of the Michigan-based firm are scheduled for early February.
General Motors is set to launch a family of vehicles in its Chinese market later this year in a move aimed at increasing its global presence. The auto maker has 20 new or updated products that it intends to sell in the country.
“We will continue to strengthen our core business and invest in the technologies that will transform the future of mobility. Managing both well is critical to position General Motors for success for generations to come,” Barra commented in a statement.
Last year, GM was heavily criticized by President Donald Trump and some members of Congress for its operational restructuring plan in North America. Under the plan, the company intends to lay off nearly 14,000 workers in order to boost its profits. Management hopes to save approximately $6 billion by the end of 2020.
General Motors stock was up $2.81, or 8.09% to $37.54 as of 1:33 p.m. on the New York Stock Exchange.
General Motors Co. Profile
General Motors Company, together with its subsidiaries, designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, and GM Financial segments.
It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling brand names. The company also sells cars, trucks, and crossovers to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.
In addition, it offers connected safety, security, and mobility solutions, as well as information technology services. Further, the company provides automotive financing services. General Motors Company was founded in 1897 and is based in Detroit, Michigan. – Yahoo Finance