Global site navigation

Local editions

GM profits rise after record quarter in North America
Business and Economy

GM profits rise after record quarter in North America

by  AFP 2 min read
General Motors reported record North American revenues in the fourth quarter behind strong vehicle pricing
General Motors reported record North American revenues in the fourth quarter behind strong vehicle pricing. Photo: Brandon Bell / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!

General Motors rode a strong performance in North America to higher fourth-quarter profits and said Tuesday that an easing in logistics problems has helped brighten its outlook for 2023.

GM, which regained the title of top US automaker last year after losing the status in 2021 to Toyota, reported fourth-quarter profits of $2 billion, up 14.8 percent from the year-ago period on revenues of $43.1 billion, up 28.4 percent.

The automaker cited strength in its "core auto business," with quarterly revenues in North America notching a fresh record, thanks to robust demand for the company's truck and sport utility vehicle offerings, its bread-and-butter products in its home market.

Pricing has been boosted by low vehicle inventories over the last year as the industry has struggled with shortages of semiconductors and other materials.

Read also

ExxonMobil reports record profits of $55.7 bn in 2022

Looking ahead to 2023, the automaker described improving commodities and logistics as a "slight tailwind" and new US tax policies to incentivize electric vehicles as "at least" a $300 million boost.

GM released a 2023 profit per share target of between $6 and $7 per share, above analyst expectations.

PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!

However, the outlook for vehicle pricing remains a question mark on auto industry profitability.

Tuesday's presentation showed an uptick in October-through-December US dealer inventories to more than double the level of a year ago. That adds to a complex pricing picture already clouded by higher lending costs and recession worries.

Rivals Tesla and Ford announced price cuts in January to leading electric vehicles.

But GM Chief Financial Officer Paul Jacobson signaled no intention to follow suit.

"We feel we're well positioned," Jacobson said in a briefing with reporters. "Our customers are saying that our vehicles are priced well."

Shares of GM jumped 6.7 percent to $38.73 in pre-market trading.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: