Money: GM says 2018 earnings exceeded expectations and 2019 looks even better - PressFrom - Canada
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MoneyGM says 2018 earnings exceeded expectations and 2019 looks even better

16:42  11 january  2019
16:42  11 january  2019 Source:   cnbc.com

Investors are finding out now why the stock market tanked in December

Investors are finding out now why the stock market tanked in December Companies are cutting profit forecasts and trying to temper expectations for earnings growth this year after a big 2018. On the first day of trading last week, Apple warned that its first quarter sales wouldn't be as high as previously projected and said its profit margin would be ever so slightly narrower than forecast. The Nikkei Asian Review reported this week that Apple is cutting its iPhone production by 10 percent for the next three months. It is more of the same for other companies. Beverage giant Constellation Brands said Wednesday that its fiscal 2019 earnings per share would be $9.20 to $9.

GM says 2018 earnings exceeded expectations and 2019 looks even better© Provided by CNBC LLC General Motors CEO Mary Barra

General Motors CEO Mary Barra said the automaker's full-year 2018 earnings exceeded its previous expectations and that 2019 is looking even better, citing strong sales in China and high demand for its truck and utility vehicles in the U.S.

The second largest U.S. automaker had previously told investors that it expected 2018 adjusted earnings of between $5.80 and $6.20 a share and adjusted automotive free cash flow of $4 billion. It now expects to surpass those projections and painted an even better picture of 2019, Barra said Friday.

She forecast diluted adjusted earnings per share of between $6.50 to $7 and adjusted automotive free cash flow $4.5 billion to $6 billion for 2019.

GM predicts profit surge after unpopular layoffs, plant closings

GM predicts profit surge after unpopular layoffs, plant closings General Motors said last year's earnings would be higher than expected and this year's may rise even further as it focuses on building more lucrative vehicles, a strategy that infuriated lawmakers because of the U.S. plant closings and layoffs it entailed. Earnings in 2019 will be $6.50 to $7 per share, the Detroit based company said Friday, higher than most analysts' estimates. The carmaker reiterated plans to deploy its first commercial fleet of self-driving cars and said retail sales in China would be comparable to 2018 despite a slowdown in the country's economy exacerbated by a trade fight with Washington.

Barra also said GM tightened its belt last year, adding that tight cost controls helped boost earnings. Mary Barraannounced several plant closures and 14,000 job cuts in November. The reorganization is estimated to save about $6 billion by the end of 2020, with about half of those cost savings realized by the end of 2019, the company said at the time.

GM plans to expand its footprint overseas with a global family of vehicles it is set to launch in China this year, Barra told reporters on a conference call.

Cadillac will become the company's lead electric vehicle brand, it said. It's projecting just over 17 million in total U.S. vehicle sales in 2019 and 27 million in China — about flat from 2018. She said annual auto sales in China will eventually climb to 30 million.

Oshawa auto workers rally as GM predicts jump in profits

Oshawa auto workers rally as GM predicts jump in profits Premier Doug Ford, Prime Minister Justin Trudeau and even Warren Buffett came under fire at a rally in Windsor Friday in support of Oshawa auto workers, but it was GM CEO Mary Barra who drew the harshest criticism from union leader Jerry Dias. 

"But the constructive conversation with trade talks as well as the NDRC related to durable goods stimulus there are a lot of factors that will allow us to achieve appropriate earnings this year," she said referring to China's National Development Reform Commission.

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