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Posts Tagged ‘gm profits’

GM Expects Improved Second-Half Earnings

Company's positive news runs counter to that of Ford.

by on Sep.22, 2016

GM Chairman and CEO Mary Barra appears to be on track for another solid year as the company re-affirmed its financial guidance for the 2016.

General Motors Co. re-affirmed its earlier forecast, calling for the company to make up to $6 per share and said it expects to exceed its cost-savings target of $5.5 billion, which will be more than enough to offset increased spending on new technology and ride-sharing.

The optimistic outlook was in sharp contrast from its crosstown rival Ford Motor Co., which reduced its profit forecast for the second half. Ford expects slower sales as well as higher costs for incentives and the launch of new vehicles and other initiatives.

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GM also released a new report aimed providing additional insights about the company for the investment community. (more…)

GM Reports $2B in First-Quarter Earnings

North America drives results, but Europe posts break-even results.

by on Apr.21, 2016

GM Chairman and CEO Mary Barra said the company's first-quarter earnings show the maker is "growing where it counts."

General Motors Co. reported first-quarter net income of $2 billion, or $1.24 per share, compared with $900 million, or 56 cents per share, a year ago despite losing money in recession-scarred South America, and breaking even in its European operations during the first three months of 2016.

“We’re growing where it counts, gaining retail share in the U.S., outpacing the industry in Europe and capitalizing on robust growth in SUV and luxury segments in China,” said Chairman and CEO Mary Barra in a statement.

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Overall, GM’s earnings per share after adjustment for special items was a first-quarter record at $1.26, up 47% compared with the first quarter of 2015. GM also beat analysts’ estimates and kept in place its guidance calling for larger full-year profits this year than in 2015. (more…)

GM, Ford Insist They Will Remain Profitable in Deep Recession

Taking a “forward lean” into a “downside scenario.”

by on Mar.28, 2016

GM's Alan Batey introducing the 2017 Chevy Bolt.

Seven years after Detroit’s auto industry nearly collapsed, officials at the two largest domestic makers are taking pains to assure investors they will not only survive but thrive during the next big economic downturn.

Fears that the U.S. car market has peaked after hitting record sales of 17.5 million vehicles last year has made Wall Street increasingly wary, driving down the share prices for all the domestic makers, even as they report strong profits. But two top General Motors and Ford executives painted very different pictures for investors as the New York Auto Show opened to strong public attendance.

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“We believe the market is eventually going to plateau, but not in the immediate future,” declared Alan Batey, president of GM North America, during the annual Automotive Summit sponsored by Bank of America Merrill Lynch. And even if sales do take a tumble, he stressed, “We have reduced our break-even point to between 10 million and 11 million annual sales for the industry.”


GM Reports $9.7 Billion Profit for 2015

Sales in North America and China lead maker to profitability.

by on Feb.03, 2016

GM Chairman and CEO Mary Barra said the company was positioned for long-term success.

Despite continuing losses in Europe and South America, General Motors posted a record profit of $9.7 billion, or $5.91 per share, for 2015 with much of that coming on a $6.3 billion, or $3.92 per share, fourth quarter.

Earnings per share adjusted for special items during the fourth quarter was $1.39, up 17% compared to $1.19 per share for the fourth quarter of 2014. GM had earned  $1.1 billion, or 66 cents per share during the fourth quarter of 2014.

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“It was a strong year on many fronts, capped with record sales and earnings, and a substantial return of capital to our shareholders,” said Chairman and CEO Mary Barra. (more…)

General Motors Poised for Profitability

Executives claim maker ready to earn big money.

by on Oct.02, 2015

GM executives Mary Barra and Mark Reuss announced the automaker is poised for double-digit earnings growth during the next several years.

General Motors is poised to post hefty profits over the next several years, GM executives said as they outlined their future plans during the company’s annual Global Business Conference at the company’s Milford Proving Ground

“We expect double-digit earnings per share growth for the next number of years,” GM Chief Financial Officer Chuck Stevens said during his afternoon presentation.

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“Let me repeat that,” he added for emphasis. (more…)

UAW Makes Note of GM’s Improved Profitability

Union looking for its share of the money during talks.

by on Jul.24, 2015

Everyone was all smiles at the opening of talks, UAW's Cindy Estrada noted GM's better-than-expected Q2 profits: a reminder the union is looking for raises.

Ever since General Motors went bankrupt in 2009, GM and the United Auto Workers have made a concerted effort to make nice.

The company and the union have put aside the years of antagonistic relations and built a new relationship. GM Chief Executive Mary Barra, whose father was a union member for years, has clearly stated that she values good relations with the UAW.

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Cathy Clegg, GM’s vice president of labor relations, has credited the union with helping to boost the quality of GM’s vehicles and the company has made several announcements during the winter and spring that highlighted the company’s commitment to investing in American jobs and American workers. (more…)

GM Falls Short of Q1 Analyst Expectations

Maker takes $500 million in special charges related to Russia, victims fund.

by on Apr.23, 2015

GM reported earnings that were lower than expected in the first quarter of this year.

General Motors reported lower than expected first-quarter adjusted earnings of 86 cents per share on revenue of $35.7 billion.

The Detroit-based automaker was expected by analysts to report earnings of 97 cents per share and revenue of $37.6 billion.

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The results were impacted by $050 million in special charges taken by the automaker related to shutting down its business in Russia and the company’s victims compensation program. They amounted to 30 cents per share. (more…)

Automakers Getting Ready to Pass out Profit-Sharing

GM employees bust bank with this year’s payout.

by on Mar.02, 2015

GM CEO Mary Barra said hourly employees weren't to blame for the $3 billion in costs related to faulty ignition switches so they'll get record-setting profit-sharing checks this year.

General Motors, FCA US and Ford Motor Co. will begin distributing profit-sharing checks soon, setting the stage for what is certain to become an intense debate over compensation for the companies unionized hourly workers.

Based on General Motors’ North America 2014 financial performance, the company will pay, on average, up to $9,000 to approximately 48,400 eligible GM U.S. hourly employees. The compensation was larger than allowed under the contract because GM elected to pay profits based on the company’s earnings before the $3 billion deduction to cover the cost of recalls. The recalls were the fault of GM’s management not GM’s workers, GM Chief Executive Officer Mary Barra said.

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“UAW members at General Motors are proud of what they do and see profit-sharing as another validation of their hard work producing quality vehicles. Profit sharing does more than put a few dollars into a member’s pocket. It means more to spend in the community and each little bit makes a big difference for everyone,” said UAW vice president Cindy Estrada, who is in charge of the union’s GM Department. (more…)

GM Delivers Strong, $1.1 Bil Q4 Earnings

But recalls drive down profit for full year to $2.8 bil.

by on Feb.04, 2015

GM CEO Mary Barra put a positive spin on the maker's latest earnings.

General Motors saw earnings surge 22.2% during the last three months of 2014, driven by strong U.S. and Chinese sales – but the maker also reported a sharp decline in its full-year net income which was hammered by the cost of major recall problems.

GM closed 2014 with fourth quarter earnings of $1.1 billion, or $0.66 a share, despite one-time items that reduced earnings by $900 million, or $0.53 a share. By comparison, the maker earned $0.9 billion, or $0.57 a share, during the final three months of 2013.

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“A strong fourth quarter helped us deliver very good core operating results in 2014 despite significant challenges we and the industry faced,” said GM CEO Mary Barra in a prepared statement. “By keeping our customers at the center of all our decisions, we addressed those challenges head-on and outlined a customer-focused strategic plan that will guide our company well into the future.”


GM Forecasts Improved Profitability in 2015

Past year’s balance sheet battered by recall crisis.

by on Jan.14, 2015

General Motors CEO Mary Barra is predicting a strong 2015 for the Detroit-based automaker.

After watching General Motors get hammered for its safety lapses last year, investors have gotten some good news from the Detroit automotive giant. GM’s senior management team, led by CEO Mary Barra, predicted earnings should bounce back in 2015.

While they didn’t offer a specific earnings target, Barra and her top lieutenants told those attending an industry conference in Detroit that they are on track to meet their financial targets, in part due to the anticipated turnaround of the company’s long-troubled European operations.

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“We had a pivotal year in 2014, outlining a customer-focused strategic plan for the company and delivering on our commitments by achieving strong core operating performance,” Barra said during the Deutsche Bank 2015 Global Auto Industry Conference. “We’ll build on this momentum in 2015 and continue executing our plan to become the most-valued automotive company.” (more…)