GM Predicts Stronger Profits This Year

January 11, 2019 at 10:17 AM

General Motor Co. predicts its adjusted earnings this year will climb to $6.50-$7 per share after surpassing its expected $6.20 per share result for 2018.

GM says cost-cutting measuring—including November’s announced plan to shed 14,000 jobs and close five factories in North America—will hike earnings this year by at least $2 billion and contribute to an overall annual profit of $6 billion by 2020.

In a bullish forecast, GM also predicts that the U.S. car market will surpass sales of 17 million retail units for the fifth consecutive year in 2019. Volume totaled 17.24 million units last year.

The company also expects China’s overall car market will be flat at nearly 27 million retail sales this year. GM plans to debut more than 20 new or refreshed models there in 2019.