GM Raises Profit Guidance for 2018
General Motors Co. raised its profit guidance for 2018 ahead of reporting full results next month, and said its bottom line should grow in 2019 as it expects auto demand to remain resilient in its two biggest markets, China and the U.S.
GMGM, +7.82%on Friday said its pretax earnings per share, adjusted for one-time items, would exceed its previous estimate of $5.80 to $6.20, set last summer due to stronger-than-expected sales of pickup trucks and sport-utility vehicles, which help drive higher pricing in North America in the fourth quarter. The nation’s largest auto maker by sales said the continued U.S. roll out of overhauled pickup-truck models—the company’s most lucrative products—should help it boost profits in 2019.
Five years into her tenure, Chief Executive Mary Barra has generated record profits, in part by jettisoning slow-growing or unprofitable business units, including GM’s money-losing European division in a 2017 sale.
GM projected industrywide U.S. sales this year to come close to the 17.3 million vehicles sold in 2018, a historically strong number. It predicts the auto market in China will be flat this year, though Barra told reporters Friday that GM’s income from China will dip this year.
An expanded version of this report appears at WSJ.com.
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