- Full-year profit outlook confirmed
- “Highly volatile environment”, says CEO
- GM’s North American division adds most to bottom line
General Motors revealed fourth-quarter earnings that were stronger than expected on Wednesday, and the car maker also confirmed its full-year profit outlook. Truck sales in the United States that were higher in margin helped to offset significant weaknesses in Chinese markets.
The company’s earnings for the three months that ended in December were $1.43 per share, beating the consensus of $1.24 per share that analysts had predicted. Nevertheless, this figure is down by 13.3% from the same period last year.
Revenues for the group were announced as totaling $38.4 billion, which is an increase of 1.8%. General Motors also confirmed its full-year adjusted earnings range as being between $6.50 and $6.70 per share. Between $4.5 billion and $6 billion in free cash flow could come in from the company’s core automobile operations.
CEO Mary Berra said: “GM delivered another strong year of earnings in a highly volatile environment in 2018.”
“We will continue to make bold decisions to lead the transformation of this industry and drive significant shareholder value,” she added.
In early trading, GM shares saw a hike of 3.05%, trading at $40.50 each. This extends the stock’s gains over the past three months to around 12%.
Berra commented: “We navigated significant headwinds in 2018 to deliver another year of strong results, demonstrating the earnings resiliency of this company.”
“The actions we’ve been taking to shape a stronger, more profitable portfolio of businesses position GM for long-term success,” she added.
Most of the company’s fourth-quarter bottom line came from GM’s North American division ,which saw net income go up 5.8% to achieve a total of over $3 billion.