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GM Predicts Strong Profits through 2019
General Motors Co. expects its earnings in 2018 will match last year’s expected results of close to $6.50 per share, and 2019 will be “even better.”
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General Motors Co. expects its earnings in 2018 will match last year’s expected results of close to $6.50 per share, and 2019 will be “even better.”
GM will post a $7 billion non-cash write-down in 2017 on tax-deferred assets. The adjustment is a result of revisions in the U.S. tax code, which have reduced the corporate tax rate from 35% to 21%. Like others companies, GM anticipates the impact will be offset by lower tax rates beginning this year.
Barra credits GM’s bullish outlook to cost-cutting, continued strong demand for its vehicles in China and the U.S. and improvement in South American markets. The company also anticipates “very strong returns” from the next-generation full-size pickup trucks it will roll out later this year.
Production downtime caused by retooling to build the new trucks will be largely offset by strong sales of carryover SUV/crossover vehicles, according to the company. GM notes that it will hike its spending on self-driving-vehicle technologies to an average $250 million per quarter from $150 million in 2017.
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