General Motors reported internet earnings of $2 billion for the fourth quarter of 2018, as strong gross sales of crossovers and pickups within the U.S. helped offset restructuring prices and losses overseas. Excluding one-time objects, GM reported earnings of $1.43 per share, down 13% from the year in the past period however properly forward of the $1.22 consensus Wall Street estimate.
For the full year, GM reported net income of $8.1 billion and adjusted earnings per share of $6.54. GM’s profit in the fourth quarter was pushed by the North America unit and the financial-services arm, due to robust gross sales of GM’s new pickup vehicles and its nonetheless-pretty-new crossover SUVs, in addition to GM’s success in increasing its leasing and lending enterprise worldwide.
GM managed a superb consequence regardless of some difficult headwinds: rising commodity prices, a slumping new-automotive market in China, and inflation pressures and foreign money devaluations in South America.
GM took a one-time cost of $1.33 billion within the fourth quarter for “transformation actions” associated with the restructuring effort in North America that it introduced in November of final yr. A lot of that cost went to cowl the prices of worker separations and accelerated depreciation, GM mentioned.
As of Dec. 31, 2018, GM had $19.6 billion in money, unchanged from the year prior, and a further $14.2 billion in traces of credit score, for $33.8 billion in total liquidity accessible to its automotive enterprise. Towards that, GM had $14 billion in properly-structured lengthy-time period debt, up from $13.5 billion on the finish of 2017.
GM additionally issued its annual replace on its pension funding standing. GM mentioned that whereas its U.S. pension, non-U.S. pension, and OPEB (“different put up-worker advantages”) portfolios are all nonetheless underfunded, they’re all higher funded than at any time since GM emerged from a chapter in 2009.
GM’s steering for 2019 is unchanged from the presentation it gave to traders in January. It nonetheless expects full-year adjusted earnings per share between $6.50 and $7 and adjusted automotive free cash move of between $4.5 billion and $6 billion.