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GM Boosts Profit Forecast, Ford Doesn't
A bullish General Motors Co. says its profits in 2016 will come in at the top end of its guidance, with further growth expected this year.
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A bullish General Motors Co. says its profits in 2016 will come in at the top end of its guidance, with further growth expected this year.
GM predicts sales of its trucks and SUV/crossovers will average 52% of its total worldwide volume over the next four years compared with 38% in the previous six years. The company anticipates "another good year," thanks to continued strong demand in China and the U.S., says President Dan Ammann.
The company announced earlier today it will spend another $5 billion this year to repurchase its common stock, bringing the program total to $14 billion.
GM’s bullish outlook contrasts with Ford Motor Co.’s guidance, which cautions the company will be less profitable this year. Ford affirms an earlier forecast for a pretax profit in 2016 of $10.2 billion. But it says higher taxes and the cost of pursuing advanced mobility technologies and services will hurt earnings this year.
Ford says it will pay a $200 million supplemental cash dividend in the first quarter, thereby adding 5 cents per share to the scheduled 15-cent dividend. the company expects its profits will grow again in 2018, thanks to gains in its core business.
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