GM Reports 4Q Revenue of $38.4B
YOUNGSTOWN, Ohio – General Motors Co. reported revenue of $38.4 billion in the fourth quarter of 2018, an increase of 1.8% from the same period of 2017. Earning per share came in at $1.43, as both figures were well ahead of Wall Street forecasts.
According to CNBC, the company’s fourth-quarter revenue was projected at $36.48 billion, while adjusted earnings were forecast at $1.22 per share.
“Results were driven by strong pricing, surging crossover sales, growth of GM Financial earnings, disciplined cost control and the successful launch of the company’s all-new full-size pickup trucks: the Chevrolet Silverado and GMC Sierra,” the company said in its quarterly report.
For the full year, GM reported income of $8.1 billion, while North America earnings before interest and taxes was $10.8 billion.
“GM delivered another strong year of earnings in a highly volatile environment in 2018,” CEO Mary Barra said in a statement. “We will continue to make bold decisions to lead the transformation of this industry and drive significant shareholder value.”
Based on the earnings, GM announced Wednesday that 46,500 hourly employees in the United State would be eligible for profit-sharing payments of up to $10,750.
“When GM delivers good business results, our eligible hourly employees in the U.S. share in the company’s success,” Barra said. “To build on our performance, we must continue working together to deliver strong safety, quality and productivity results.”
The announcements come as the Detroit automaker plans to end production at plants in March – at the Lordstown Complex, Oshawa Car Assembly, Detroit-Hamtramck Assembly, Baltimore Operations and Warren Transmission Operations – and slash 15% of its salaried workforce.
Job cuts started Monday as about 4,000 workers are to be laid off. In November, GM said it would cut 14,000 jobs between salaried positions and production plants.
Going into 2019, the company is continuing its truck and SUV product lines. On Tuesday, GM announced it will bring 1,000 new jobs to its Flint Assembly in Michigan to build the 2020 Chevrolet Silverado HD. Workers who were laid off at other GM plants will be given hiring priority in Flint.
Copyright 2020 The Business Journal, Youngstown, Ohio.