The News Wheel
No Comments

GM Reveals Increased Earnings Outlook for 2017

Decrease Font Size Increase Font Size Text Size Print This Page
General Motors Chairman and CEO Mary Barra

General Motors Chairman and CEO Mary Barra

General Motors has announced its 2017 earnings per share diluted-adjusted outlook as being $6-$6.50 on Tuesday, improving $0.50-$1 from its 2016 calendar-year outlook. GM also announced that it expects this year to either improve or maintain its 2016 EBIT-adjusted and EBIT-adjusted margin as the result of higher revenues, as well as the expectation that it will generate $6 billion of automotive-adjusted free cash flow.

General Motors Chairman and CEO Mary Barra, who was joined by President Dan Ammann and Executive VP and CFO Chuck Stevens, announced the company’s outlook at the 2017 Deutsche Bank 2017 Global Auto Industry Conference in Detroit on Tuesday.


New GM Vehicle Research: See what’s new with the 2017 GMC Terrain


“We’ve generated consistently strong results the last few years by delivering great vehicles, growing the topline and driving efficiencies, while at the same time establishing a leading position in shaping the future of transportation,” Barra said.  “We’ll stay focused on executing our strategic plan and generating the profitable growth needed to create long-term value for our shareholders.”

Also announced was a $1 billion increase to the company’s 2018 cost efficiency goal, which had previously been set at $5.5 billion, as result of additional anticipated savings earned through cost-cutting measures. GM has achieved $4 billion of that goal through 2016.

The GM Board of Directors has also approved $5 billion in common stock repurchasing under its previously-announced program, bringing the total to $14 billion.

In terms of product movement, GM expects that sales volume from new or refreshed vehicles to increase to 38% between 2017-2020, which would be a considerable improvement over the 26% volume increase the automaker saw between 2011-2016. Not surprisingly, new or refreshed trucks, crossovers, and SUVs are expected to account for 52% of that volume, up from 38% between 2011-2016.

“Success in this business depends to a great degree on where you place your bets,” Stevens said. “We’ll continue to allocate capital where we expect to generate significant margins, while we work to drive business performance that meets our shareholder commitments.”


Shopping for a New Pickup or SUV? See current GM national incentives


Next-Article-Button