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GM Boosts Revenue, Earnings
General Motors Co.’s adjusted net income swung to $2.0 billion in last year’s fourth quarter, reversing a $5.2 billion loss in the same period of 2017 caused by U.S. tax changes.
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General Motors Co.’s adjusted net income swung to $2.0 billion in last year’s fourth quarter, reversing a $5.2 billion loss in the same period of 2017 caused by U.S. tax changes.
GM spent $1.3 billion on restructuring in the fourth quarter, mainly in the form of exit payments associated with staff cuts. The company says it expects those costs eventually will reach about $2 billion.
Revenue advanced 2% to $38.4 billion in October-December, as strong demand for trucks overcame a 14% drop in retail unit sales to 2.24 million vehicles. Volume for the period fell 3% to 785,000 units in the U.S. and 25% to 965,000 vehicles in China.
Adjusted pretax earnings for the quarter declined to $2.8 billion from $3.1 billion in 2017. GM says record-high fourth-quarter EBITs for its North American and financial units were offset by a drop to zero EBIT overseas.
For the full year, adjusted net earnings surged to $8.0 billion, reversing a $3.9 billion loss in 2017. Revenue advanced 1% to $147 billion. Adjusted EBIT shrank 8% to $11.8 billion. Retail sales dropped 13% to 8.38 million vehicles.
GM describes its results as “strong,” pointing to it success in offsetting the challenges of rising raw material costs, unfavorable exchange rates and a $1 billion negative impact of new tariffs and trade restrictions.
The company delivered earnings per share of $1.43 in the fourth quarter and $6.54 for the year.
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