GM sees 2018 earnings flat, with pickups picking up in
2019
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[January 16, 2018]
By Nick Carey and Joseph White
DETROIT (Reuters) - General Motors Co <GM.N>
said on Tuesday it expects earnings in 2018 to be largely flat compared
with 2017, but that profits should pick up pace in 2019 as its revamped
line of high-margin pickup trucks hits the U.S. market.
"GM had a very good 2017 as we continued to transform our company to be
more focused, resilient and profitable," GM Chief Executive Mary Barra
said in a statement. "We are positioned for another strong year in 2018
and an even better one in 2019."
GM and its Detroit rivals, Ford Motor Co <F.N> and Fiat Chrysler
Automobiles NV <FCHA.MI>, are bringing on new trucks at a time when
overall U.S. new vehicle sales have been falling, but truck sales
continue to grow as consumers abandon passenger cars in favor of
pickups, SUVs and crossovers.
GM on Saturday fired a new round in the battle for profits from one of
the U.S. auto industry's most lucrative segments when it showed a new
generation of its Chevrolet Silverado pickup truck at the Detroit auto
show.
The new Silverado, a highlight of the event, is the successor to GM's
best-selling vehicle in North America. Sales of the current Silverado
rose nearly 2 percent to 585,000 vehicles in 2017.
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A logo of General Motors is pictured at its plant in Silao, in
Guanajuato state, Mexico, November 9, 2017. Picture taken November
9, 2017. REUTERS/Edgard Garrido
U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in
2016, and are expected to drop further in 2018 as interest rates rise and more
late-model used cars come back to dealer lots to compete with new ones.
GM said it expects 2017 earnings per share to come in at the high end of its
previously forecast range of $6 to $6.50. Analysts have predicted full-year 2017
earnings per share of $6.30.
The company said it expected earnings for 2018 to be roughly the same as in
2017. Analysts have predicted full-year 2018 earnings per share of $5.98.
(Reporting By Nick Carey; Editing by Bernadette Baum)
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