Mon, January 30, 2023

General Motors lost $194 million in the Fourth Quarter

GM and main findings

General Motors is a world-famous automaker thanks to its vehicles. Recently, GM released the fourth-quarter results. Based on the information, the automaker lost $194 million in the fourth quarter of 2019 due to 40-day autoworkers strike.

This strike had a huge impact on General Motors as the automaker was losing money due to the situation. The strike cost the automaker $2.6 billion in earnings before interest and taxes during the quarter. Overall, the company lost $3.6 billion in 2019.

Nevertheless, the company was still able to surpass the earnings expectations for the fourth quarter. The revenue was slightly lower below expectations.

Let’s have a look at GM stocks. The stock added 2.6% in premarket trading to reach more than $35 a share. For the whole of 2019, shares fell by 11.7% including a 6.1% decline in 2020. Currently, the value of the automaker is $49.1 billion.

Adjusted earnings also surpassed the expectations. However, revenue failed to live up to the expectations as the company’s revenue was $30.8 billion vs. $31.04 billion expected.

General Motors and main challengesStock markets on February 5

GM’s operating profit for 2019, reached $8.4 billion. In the last quarter of 2019, the company made $105 million. However, in 2018 the operating profit was higher and stood at $11.8 billion.

In North America, the company earned $8.2 billion including $263 million in the fourth quarter. Nevertheless, in 2018 General Motors earned $10.8 billion.

The company experienced problems on the international stage. In 2019, the company lost $202 million due to problems in China. GM’s profits in China fell from $2 billion in 2018 to $1.1 billion in 2019. In the fourth quarter, sales declined by $68 million to $239 million.

Nevertheless, GM remains optimistic about the long-term Chinese market despite the slowing sales and competition.

Last but not least, the automaker’s 2020 guidance was flat compared to last year. It includes adjusted earnings of $5.75 to $6.25 per share as well as adjusted operating cash flow from $13 billion to $14.5 billion. According to the information, the adjusted automotive free cash flow is expected to range from $6 billion to $7.5 billion.

YOU MAY ALSO LIKE

Euro

The euro rose on Monday as hopes for an increase in eurozone

Rocket Lab’s Shares Falling, Unlike Their Rockets

Last week, Rocket Lab Inc. launched its first rocket from US territory,

Solana

What Impact Will The Helium Network Migration Have On The Solana Blockchain?

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its