General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared to 2017, but that profits should accelerate in 2019 as its new line of high-margin vans arrives in the US market.
The earnings outlook for 2018 exceeded market expectations, and GM shares rose more than 3 percent in premarket operations.
"GM had a very good 2017 as we continue 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 year in 2019."
GM and Detroit rivals Ford Motor and Fiat Chrysler Automobiles are bringing new trucks at a time when total sales of new vehicles in the US UU It has been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of trucks, SUVs and crossovers.
GM on Saturday fired a new round in the battle for the earnings of one of the most lucrative segments of the US auto industry showed a new generation of its Chevrolet Silverado 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 increased by almost 2 percent to 585,000 vehicles in 2017.
In the coming months, the company will also unveil a renewed GMC Sierra pickup truck.
EE. UU New vehicle sales fell 2 percent in 2017 after hitting a record in 2016, and are expected to fall further in 2018 as interest rates rise and more used car models return to dealers to compete with the new ones.
on Tuesday that while retooling a factory in Ft. Wayne, Indiana, to manufacture the new trucks, it will switch part of the production to a plant in Oshawa, Ontario, to avoid losing sales in a hot market for the vehicles.
The number one car manufacturer in the US UU He said he will record a non-cash charge of $ 7 billion for his fourth quarter 2017 earnings related to deferred tax assets.
GM said it expects capital expenditures in 2018 of around $ 8.5 billion, of which $ 1 billion will be used to finance automotive technology.
Last week, the company said it is seeking approval from the US government. UU For a fully autonomous car, one without a steering wheel, brake pedal or accelerator pedal, to enter the first commercial fleet of shared trips in 2019.
GM said it expects 2017 earnings per share to be at the top end from its previously forecast range of $ 6 to $ 6.50. Analysts have forecast earnings per share for 2017 of $ 6.30.
The company expects earnings for 2018 to be roughly the same as in 2017. Analysts forecast annual earnings per share of 2018 for $ 5.98.
In pre-market operations, GM shares rose $ 1.35, more than 3 percent, to $ 45.42.