![]() The total impact in 2023 is $1.3 billion including the higher wages and benefits in the deal. That includes an estimated $1.1 billion EBIT-adjusted impact from the UAW strike, which lasted just over six weeks, primarily from lost production. GM's new guidance reduced expected net income attributable to stockholders for 2023 to a range of $9.1 billion to $9.7 billion, compared to the previous outlook of $9.3 billion to $10.7 billion. The $9.3 billion in additional costs through 2028 is for agreements with the UAW and Canadian union Unifor, and translates to about $575 per vehicle over the life of the deals. "Now it’s about getting the train back on the tracks and this a great start." "Finally some good news for GM and this was strong outlook and comments from Barra & Co post the UAW debacle," Wedbush Securities analyst Daniel Ives said in an email. The Detroit automaker has struggled to boost its stock price as it dealt with the strike and with problems at its Cruise self-driving vehicle unit and rollout of its new electric vehicles. GM lowered 2023 profit expectations after the U.S. Shares in Ford and Chrysler parent Stellantis, which also were hit by the UAW strike, were up 4.3% and 4.8%, respectively. You can follow him on Twitter and on Instagram. Pras Subramanian is a reporter for Yahoo Finance. ![]() GM says the amount of lithium extracted and processed there will support 1 million EVs a year. On a separate note, GM also reported it has taken a stake in Lithium Americas worth $650 million to develop the largest known lithium mine in the U.S., located in Nevada. "We've said going back to investor day that we were planning on a 15 million unit market, it's a little bit softer than kind of where we've seen demand for the last couple of years, but nothing that I would say is significant." "We're not baking any recessions in ," Jacobson said. Though talk of growing macro headwinds dominated Tesla and CEO Elon Musk's commentary in the post earnings call, GM is not modeling a recession in its outlook, though it is maintaining flexibility in case the economic environment weakens. ![]() "We expect that our momentum will help us deliver strong results once again in 2023," Barra said. As part of that, we're going to manage headcount through attrition and targeted hiring for our priorities." Jacobsen said the automaker would also pursue cost saving opportunities through "reduced complexity" in GM products.įor 2023, GM is forecasting adjusted EBIT of $10.5 billion-$12.5 billion, and adjusted EPS of $6.00-$7.00. "I want to be clear, we're not considering any layoffs. "We're being cautious today, we also rolled out a $2 billion cost reduction program over the next two years," GM CFO Paul Jacobsen said to Yahoo Finance. In terms of cost control, GM is being cautious with regards to new spending, and is targeting billions in cost savings, without impacting headcount. GMC pickup trucks are displayed for sale on a lot at a General Motors dealership on Januin Austin, Texas. GM also reported it is the number one truck leader in the market, selling 1.1 million full-size pickups, mid-size pickups, and full-size SUVs. On the EV front, GM said the Chevrolet Bolt EV and Bolt EUV saw record sales for 2022, which demonstrated the "importance of affordable EVs in our portfolio." Cheap EVs will be at the forefront in 2023, with rivals Tesla and Ford cutting prices for certain EV models this year alone. ![]() GM shares were up as much as 9% in early trading Tuesday. industry in total sales and delivered the largest year-over-year increase in market share of any OEM, thanks to strong demand for our products and improved supply chain conditions," Barra said in her shareholder letter. GM also reported full-year adjusted EBIT of $14.5 billion, on the higher end of its prior guidance of $13 billion to $15 billion. On the profitability front, GM reported adjusted EBIT (earnings before interest and taxes) of $3.8 billion, beating estimates of $3.2 billion. General Motors ( GM) shares jumped early Tuesday as the automaker reported profit jumped in the fourth quarter, driven again by record revenue and strong demand.įor the full-year, the company reported profits of $14.5 billion, near the high end of its forecast, amid what CEO Mary Barra called "strong customer demand" in a letter to shareholders.
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