GM EXPECTS EARNINGS GROWTH AGAIN IN 2017; INCREASES STOCK REPURCHASE PROGRAM
AddThis Social Bookmark Button
By: General Motors

◾Announces 2017 EPS diluted-adjusted outlook of $6.00-$6.50

◾Expects to maintain or improve EBIT-adjusted and EBIT-adjusted margin

◾Authorizes additional $5 billion for share repurchases

◾Increases cost efficiency target to $6.5 billion through 2018

DETROIT – General Motors Co. (NYSE: GM) today said it expects its 2017 earnings per share (EPS) diluted-adjusted to increase to $6.00-$6.50, up from its 2016 calendar-year outlook of $5.50-$6.00. In 2017, the company also expects to maintain or improve EBIT-adjusted and EBIT-adjusted margin on higher revenues, compared to 2016, and generate about $6.0 billion of automotive-adjusted free cash flow.

Based on this strong outlook, the GM Board of Directors approved an additional $5 billion in common stock repurchases under its existing share repurchase program, which was announced March 9, 2015. The new authorization, which has no expiration date, brings the total under the program to $14 billion.

Share buybacks for the program's initial authorization of $5 billion were completed in the third quarter of 2016, one quarter earlier than planned. In the fourth quarter of 2016, the company also completed $1 billion of the next $4 billion authorization declared in January 2016. The company expects to meet its prior commitment to repurchase $9 billion of common stock by the end of 2017.

GM also announced a $1 billion increase to its cost efficiency target, raising it to $6.5 billion through 2018, of which about $4.0 billion has already been achieved through 2016. The increased estimate is based on expected additional savings in material, logistics, manufacturing and general administrative costs.

Chairman and CEO Mary Barra, President Dan Ammann and Executive Vice President and CFO Chuck Stevens shared this outlook with the investors and analysts attending the Deutsche Bank 2017 Global Auto Industry Conference in Detroit.

'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.'

GM's 2017 outlook is based on expected strong performance in North America and China, growth of GM Financial, continued cost efficiencies, improvement in South America and an ongoing strong vehicle launch cadence.

Specifically, the company anticipates the proportion of its global volume from new or refreshed vehicles – those in production less than 18 months – to grow to 38 percent in the 2017-2020 timeframe, up from 26 percent during the 2011-2016 period. Crossovers, trucks and SUVs as a proportion of GM's global volume of new or refreshed vehicles in the 2017-2020 period are expected to increase significantly, to 52 percent – up from 38 percent the prior six years.

The company also reaffirmed its transparent capital allocation framework, introduced in March 2015
:

◾Reinvesting in the business to achieve a 20 percent or greater return on invested capital.

◾Maintaining a strong, investment-grade balance sheet with a target cash balance of $20 billion.

◾Beyond reinvesting in the business and maintaining an investment grade balance sheet, the company expects to return all available free cash flow to shareholders on an ongoing basis.

'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.'

Among key accomplishments for 2016, the company noted the following:

◾On-track to deliver full-year records for revenue, EBIT-adjusted and EBIT-adjusted margin.

◾Expects to achieve full-year earnings per diluted-adjusted share in the high end of its previously-stated range of $5.50-$6.00.

◾On-track to achieve more than a 10 percent EBIT-adjusted margin in GM North America for the second straight year.

◾On-track to sustain strong equity income in China.

◾Generated four-quarter trailing ROIC-adjusted of 30.6 percent through the third quarter.

◾Through the end of 2016, the company has repurchased $6 billion of common stock since March 2015.

◾GM's U.S. retail strategy drove a retail market share increase of 0.5 points for the year, more than any full-line manufacturer.

◾GM delivered more segment winners than any other manufacturer in JD Power's Vehicle Dependability, Initial Quality and APEAL studies in 2016.

◾Introduced the 238 mile-per-full-charge Chevrolet Bolt EV, which won the 2017 Motor Trend and 2017 North American Car of the Year awards.

◾Formed partnership with Lyft to create an integrated network of on-demand autonomous vehicles in the U.S.

◾Acquired Cruise Automation to accelerate autonomous vehicle development.

◾Launched Maven car-sharing brand, which is operating in 16 U.S. cities.

◾Testing autonomous Chevrolet Bolt EVs on public roads in Scottsdale, Arizona, San Francisco and Warren, Michigan.

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

posted on conceptcarz.com

   Recent Articles
Ford Investing $1.2 Billion In Three Michigan Facilities, Further Bolstering Leadership In Trucks, Suvs, Mobility

◾$850 million Michigan Assembly Plant upgrade supports return of Ford Ranger, Bronco
◾$150 million investment and 130 jobs at Romeo Engine expands capacity for engine components for several vehicles, including Ranger and Bronco
◾$200 million investment for advanced data center in Michigan supports Ford's expansion to an auto and mobility company and expected dramatic increase in data storage needs
◾Investments are in addition to $700 million and 700 new jobs at Ford's Flat Rock, Michigan faci....
Toyota Research Institute Delivers Silicon Valley Community A Hands-On Experience Of Future Mobility

• Annual Onramp event focused on fuel efficiency, teamwork, strategy and fun.

• First look at the second generation autonomous test vehicle.


Los Altos, Calif. March 17, 2017 - What is it like to compete in a car race that isn't about speed, but rather fuel efficiency?

As more than 100 people found out on March 3 at the Sonoma Raceway: really fun.

A broad cross-section of the Silicon Valley community participated in Toyota Onramp 2017, an annual event hos....
Scared Of The Dark? You're Not Alone. Fear Handed Down From Our Cavemen Ancestors Causes Stress On The Road

◾Night fears rooted in pre-historic past cause stress behind the wheel
◾New poll shows most people worry about night blindness, many fear hitting pedestrians
◾Ford introduces tech that automatically brakes for pedestrians at night
◾System scans road ahead – and pavement for people who might step into road
◾After dark, traffic accidents with pedestrians almost twice as likely to lead to a fatality

BRENTWOOD, Essex, March 16, 2017 – It's not just children who are afraid of the dark. Grow....
Audi Sets Strategic Path In Challenging Year 2016

◾Robust core business: growth in car deliveries and revenue, operating return on sales before special items within target corridor at 8.2 percent
◾Diesel issue and Takata airbags: after special items of €1.8 billion, operating profit of €3.1 billion and operating return on sales of 5.1 percent
◾High self-financing strength: net cash flow of €2.1 billion, net liquidity rises to €17.2 billion
◾Model initiative: two new SUVs by 2019, three electric cars by 2020, successors for important model se....
New Ford EQVM Program Electrifies Work Trucks

◾Ford expands its Qualified Vehicle Modifier program to include companies that develop and install electrified and hydraulic hybrid powertrains for commercial vehicles, retaining the original powertrain warranty.
◾Ford eQVM program launches with three developers – XL Hybrids, Lightning Hybrids and Motiv Power Systems

INDIANAPOLIS, March 14, 2017 – Ford is expanding its Advanced Fuel Qualified Vehicle Modifier (QVM) program to include companies that develop and install electrified and ....
2018 Alfa Romeo Stelvio
2018 Alfa Romeo Stelvio  2018 Alfa Romeo Stelvio  2018 Alfa Romeo Stelvio  2018 Alfa Romeo Stelvio  2018 Alfa Romeo Stelvio  
2018 Ford Expedition
2018 Ford Expedition  2018 Ford Expedition  2018 Ford Expedition  2018 Ford Expedition  2018 Ford Expedition  
2018 Infiniti Q50
2018 Infiniti Q50  2018 Infiniti Q50  2018 Infiniti Q50  2018 Infiniti Q50  2018 Infiniti Q50  
2018 Mercedes-Benz GLA-Class
2018 Mercedes-Benz GLA-Class  2018 Mercedes-Benz GLA-Class  2018 Mercedes-Benz GLA-Class  2018 Mercedes-Benz GLA-Class  2018 Mercedes-Benz GLA-Class  
2018 Volkswagen Atlas
2018 Volkswagen Atlas  2018 Volkswagen Atlas  2018 Volkswagen Atlas  2018 Volkswagen Atlas  2018 Volkswagen Atlas  
2017 Acura MDX
2017 Acura MDX  2017 Acura MDX  2017 Acura MDX  2017 Acura MDX  2017 Acura MDX  
2017 Alfa Romeo Giulia
2017 Alfa Romeo Giulia  2017 Alfa Romeo Giulia  2017 Alfa Romeo Giulia  2017 Alfa Romeo Giulia  2017 Alfa Romeo Giulia  
2017 Alfa Romeo Giulia Quadrifoglio
2017 Alfa Romeo Giulia Quadrifoglio  2017 Alfa Romeo Giulia Quadrifoglio  2017 Alfa Romeo Giulia Quadrifoglio  2017 Alfa Romeo Giulia Quadrifoglio  2017 Alfa Romeo Giulia Quadrifoglio  
2017 Audi Q7 Piloted Driving Concept
2017 Audi Q7 Piloted Driving Concept  2017 Audi Q7 Piloted Driving Concept  2017 Audi Q7 Piloted Driving Concept  
2017 Bentley Bentayga
2017 Bentley Bentayga  2017 Bentley Bentayga  2017 Bentley Bentayga  2017 Bentley Bentayga  2017 Bentley Bentayga