GM on Flat Sales Reports Record 2017 EPS

GM set an EBIT-adjusted record for the fourth quarter of 2017. This result was attributed to sales of GM’s latest crossovers, along with strong   pricing and cost control — which more than offset a wholesale volume decline during Q4. Fourth-quarter income (loss) of $(4.9) billion includes anon-cash charge of $7.3 billion related to the re-measurement of deferred tax assets due to U.S. tax reform. Fourth-quarter 2016 income was $1.9 billion. This resulted in a Diluted Earnings of $0.22 and Record EPS Diluted adjusted of $6.62.

GM returned $6.7 billion to shareholders in 2017 through share buybacks of $4.5 billion and dividends of $2.2 billion. Since 2012, GM has returned more than $25 billion, which represents more than 90 percent of available free cash flow generated over that time. Nonetheless, GM stock price has languished.

GM’s 2017 year-end global automotive pension underfunded position was $14.1 billion, an improvement from $18.2 billion at the end of 2016 which includes the p pension liabilities assumed by SA in connection with the sale of Opel/Vauxhall.  The funded status of the company’s $68.5 billion 2017 year-end U.S. defined-benefit pension plan obligation imp roved to about 92- percent, up from approximately 90 percent in 2016, as plan assets grew to $62.6 billion from $61.6 billion.

“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   arts of our business.” said Chuck Stevens, Executive Vice  President and CFO.

 Global Vehicle Sales

Through December 31, 2017, GM sold 8.9 million vehicles globally, an increase of 0.8 percent from 2016, and increased market share in each of its three key markets.

  • In the United States, GM sold 3 million vehicles, including record sales of crossovers and pickup trucks, helping the com any earn record average transaction  prices, according to J.D.  Power estimates.
  • GM and its joint ventures sold 4 million vehicles in China for the first time. The record sales were anchored by Baojun and Buick, along with Cadillac, which posted a sales increase of 51 percent. In South America, Chevy posted a 13.8- percent sales increase.
  • Global deliveries of electric vehicles were a record 69,500, led by record deliveries of Chevrolet Bolt EV (26,000) and Baojun E100 (11,500).

Past is Future?

In 2018, GM says it will continue its product momentum with the introduction of its all-new full-size trucks — the Chevrolet Silverado and GMC Sierra.  These important vehicles will round out the widest-ranging truck selection in the industry. The 2019 Chevrolet Silverado expands its customer a real significantly, featuring eight distinct models to serve the “high value,” “high feature” and “high volume” segments of the market.  This year, GM will gain the benefit of a full year of volume from the ongoing launches of its newest crossovers, the Chevrolet Traverse, Buick Enclave and GMC Terrain. The company will also introduce the next all-new Cadillac — the XT4 crossover — which will make its global debut this year.

About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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