General Motors reports $8.1 billion profit last year

GM posts strong profit beat, a reassuring sign in shaky market

The company said Wednesday that it made $5.58 per share for the year. They'll get up to $10,750 each, less than last year's $11,500. GM made $10.8 billion in 2018, before taxes, down about 9.0 percent from 2017. Daimler pays out in April but GM employees are scheduled to receive the payment in their 22 February paycheck. But it still means big profit-sharing checks for about 46,500 union workers in the USA, including those at GM's plant in Lordstown.

Based on the 2018 full-year results for the company's North America business, General Motors has announced that more than 46,500 eligible US hourly employees will receive a profit sharing payment of up to $10,750.

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.

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

According to the press release, US hourly workers have earned more than $80,500 in profit sharing payments, and the company says it's time to spread the wealth. The company's revenue was up 1.8% compared to the same quarter past year. Without US$2.5 billion worth of special items largely due to restructuring, the profit was US$6.54, easily beating Wall Street expectations of US$6.29, according to a survey by FactSet. The auto manufacturer reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.22. Despite this, GM shares were up 1.27 percent as of 11:30 a.m. ET.

GM earnings per share was $1.43, more than the predicted $1.22.

"Our outlook for China overall is for the auto industry to be flat year over year", Dhivya Suryadevara, GM's Chief Financial Officer, said in a statement, cited by Reuters.

The Trump administration's tariffs on imported aluminium and steel raised prices of those commodities, costing the company more than US$1 billion previous year. Suryadevara expects another $1 billion increase this year. This attention to the cost savings did not result in a company operating result (ebit) higher than a year earlier. US Representative, Dan Kildee, wants GM Q4 profits to be reinvested in his native US state of MI to save more employees. Cruise Automation, GM's autonomous vehicle unit, lost $728 million, 19 percent more than a year earlier.

GM said on Wednesday that China's $300 million in operating earnings in the fourth quarter was offset by other worldwide markets.

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 the consensus estimate of $36.31 billion.

Sure, GM is selling lots of expensive pickup trucks and sport utility vehicles in the USA, which helped its average vehicle-sales price hit a record $36,000.



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