GM posts $8.1 billion 2018 profit on strong vehicle pricing

Why General Motors’ Strong Earnings Aren’t What Matters for Investors

Why General Motors’ Strong Earnings Aren’t What Matters for Investors

Heavy-duty versions, with bigger frames, beds, interiors and engines make up about 30 percent of that.

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

Profit in North America rose 5.8 percent to $3 billion, while GM's worldwide operations lost $48 million. They'll get up to $10,750 each, less than last year's $11,500.

It's money in years past that was looked upon as a potential stimulus to the local economy, but no so much anymore as local employees brace for the plant's idling in March. While a handy beat, that is down from $1.65 a share in the year-earlier quarter, in part because the company struggled in key worldwide markets.

Since profit sharing began in 2010, eligible employees have earned more than $80,500 in profit-sharing payments.

Eligible employees will receive their share in their February 22nd paycheck. GM is taking actions to cut costs in China to improve profits in a softening market, Suryadevara said.

But GM is up against an industrywide malaise as auto sales plateau in the USA and fall in China.

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Reuters is reporting GM will give priority in hiring to workers who were laid off at other plants. However, many of those jobs will go to workers "from unallocated plants", according to President Mark Reuss.

But 2,700 USA workers will be offered jobs at other factories.

The last day for workers at the Lordstown facility, where the Chevrolet Cruze is produced, is March 8.

The company said Wednesday that it made $5.58 per share for the year.

Strong sales of pick-up trucks and other expensive vehicles in North America helped General Motors to beat Wall Street's fourth-quarter forecasts yesterday. Excluding restructuring charges, the company's per-share earnings were $1.43, also breezing past Wall Street expectations of $1.24.

The US$6.54 a share for 2018 earnings was far better than the original guidance of US$6 thanks in large part to pickup sales, Chief Financial Officer Dhivya Suryadevara said on a conference call. Losses at the GM Cruise self-driving-car unit widened to $728 million last year and will probably cost the automaker $1 billion this year. The equity income the automaker took home from its Chinese joint venture fell to $307 million from $504 million in the quarter, even though Cadillac sales rose 17 percent in the country.

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