General Motors: Profit increase in the 4th quarter, solid forecast for 2023







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DETROIT (Reuters) – General Motors reported higher fourth-quarter net profit on Tuesday and said it expects stronger-than-expected results for 2023, sending its stock price up 5% on the market.

The group expects its core automotive business to post a strong level of performance in 2023, with net profit attributable to shareholders expected between $8.7 billion and $10.1 billion, operating profit between $10.5 billion and $12.5 billion and adjusted earnings per share of between $6 and $7.

Analysts had expected 2023 earnings per share of $5.73 according to IBES data from Refinitiv.

In 2022, General Motors’ operating profit reached $14.5 billion, a record. In the fourth quarter alone, the automaker earned two billion dollars, as high prices and higher volumes in North America offset higher costs.

The group, the largest automaker in the United States in terms of sales, expects its pre-tax margin to rise between 8% and 10% by 2025, despite a price war launched by Tesla on the segment electric vehicles.

But General Motors is still not very present on the electrification of vehicles and its results are largely based on sales of pick-ups and SUVs with thermal engines for which demand remains strong, said Tuesday the chief financial officer Paul Jacobson.

The group plans to reduce costs in its automotive activities by two billion dollars this year, which will include reducing the workforce through natural departures. The group does not foresee layoffs, assured Paul Jacobson.

(Report by Paul Lienert and Ben Klayman, French version Dina Kartit, edited by Blandine Hénault)












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