GM sees higher 2019 prof­its on job cuts

Times of Oman - - MARKET -

NEW YORK: Gen­eral Mo­tors pro­jected strong 2019 prof­its on Fri­day, fu­eled by sav­ings from a deep re­struc­tur­ing in­clud­ing job cuts, and by solid sales in the United States and China.

GM, which has faced crit­i­cism from Pres­i­dent Don­ald Trump and other US politi­cians over the planned lay­offs, ex­pects $22.5 bil­lion in ad­di­tional prof­its this year due to the re­struc­tur­ing, push­ing its earn­ings-per­share fore­cast well above an­a­lyst ex­pec­ta­tions.

The big­gest US au­tomaker fore­cast 2019 prof­its of be­tween $6.50 and $7.00 a share, com­pared to the $5.88 now ex­pected by Wall Street an­a­lysts. GM also said it ex­pects 2018 earn­ings per share to ex­ceed an­a­lyst ex­pec­ta­tions.

“We are fo­cused on strength­en­ing our cash gen­er­a­tion and cre­at­ing ef­fi­cien­cies that will po­si­tion us to take ad­van­tage of op­por­tu­ni­ties through the cy­cle,” said Chief Fi­nan­cial Of­fi­cer Dhivya Suryade­vara said in a state­ment.

Global mar­kets have been shaken in re­cent weeks amid wor­ries over slow­ing global growth due in part to weak­ness in China amid the trade con­fronta­tion with Wash­ing­ton, and some fore­casts in­di­cat­ing the US will tip into re­ces­sion in 2020.

But GM of­fered a solid out­look for the US the China, es­ti­mat­ing over­all US sales in 2019 in the “low 17-mil­lion range,” a good level, and pro­ject­ing no sales drop in China.

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