Strong sales of its crossover utility vehicles, allied with strong pricing and cost control helped General Motors Company (NYSE:GM) top expectations in the fourth quarter.
Adjusted earnings before interest and tax (EBIT) hit a record level for a fourth quarter, clocking in at US$3.1bn, up 18.7% year-on-year.
At least 20 new all-electric vehicles by 2023
The EBIT figure was, however, after a very sizeable non-cash charge of US$7.3bn relating to recent US tax changes.
Adjusted earnings per share of US$1.65 were 27 US cents above the market consensus forecast and up 21.3% on a year earlier.
Revenue fell 5.5% to US$37.7bn from a year earlier but was ahead of market forecasts of US$36.55bn.
“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year. We will continue executing our plan and reshaping our company to position it for long-term success,” said Mary Barra, the chairman and chief executive officer of General Motors (GM).
GM plans to introduce at least 20 new all-electric vehicles by 2023 and expects to deploy self-driving vehicles in what it called a “ride-sharing environment” next year.
“Improvements in all operating segments and an intense focus on cost reductions generated a record quarter and another record year. We plan to build on this momentum in 2018 and beyond as we focus on growth opportunities across many parts of our business,” said Chuck Stevens, GM’s chief financial officer.
GM’s stock was up 0.4% at US$39.69 in pre-market trading, despite the S&P 500 being tagged to fall 66 points at the open after yesterday’s 4.1% plunge.