GM's Earnings Surge on Strength in China, U.S.
February 03 2016 - 8:40AM
Dow Jones News
General Motors Co.'s fourth-quarter profit surged amid growth in
China and booming sales of pickup trucks and sport-utility vehicles
in the U.S.
GM's fourth quarter 2015 net income attributable to common
stockholders was $6.3 billion, or $3.92 per diluted share, up from
$1.1 billion, or $0.66 per diluted share during the fourth quarter
of 2014. Earnings per share adjusted during the fourth quarter was
$1.39, up 17 percent compared to $1.19 per share for the fourth
quarter of 2014. The results beat Wall Street expectations of $1.21
a share.
North America sales rose 8.6% in the quarter, as gasoline prices
falling below $2 a gallon and low interest rates sent consumers
flocking to higher-margin trucks and SUVs. GM's retail sales in
China rose more than 14% despite economic woes in the world's
largest auto market. Those results offset ongoing volatility in
South America.
GM's revenue was flat compared with a year ago at $39.6 billion,
boosted by a $3.9 billion benefit from a reversal of valuation
allowances on tax assets in Europe.
GM's full-year net income in 2015 rose to $9.7 billion, or $5.02
per share adjusted, from 2014.
Total revenue for the year was $152.4 billion, down slightly
from $155.9 billion in 2014. GM said the revenue decrease was
primarily due to a net negative foreign currency exchange impact of
$9.3 billion.
"It was a strong year on many fronts, capped with record sales
and earnings, and a substantial return of capital to our
shareholders," GM Chief Executive Mary Barra said in a release.
"We continue to strengthen our core business, which is laying
the foundation for the company to lead in the transformation of
personal mobility," she said. GM recently invested $500 million in
ride-sharing startup Lyft Inc. with the eventual goal of developing
a driverless-car hailing service.
Equity income from GM's Chinese joint venture was $572 million,
up from $511 million a year ago. GM credited strong margins in the
world's largest auto market, combined with record retail sales of
3.6 million vehicles in 2015, up 5% from the previous year.
GM reaffirmed its recent guidance for 2016 that earnings per
share adjusted will be between $5.25 and $5.75. GM's eligible U.S.
hourly workers will receive profit-sharing checks of $11,000 on
Feb. 26, the company said.
Write to Gautham Nagesh at gautham.nagesh@wsj.com
(END) Dow Jones Newswires
February 03, 2016 08:25 ET (13:25 GMT)
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