GM spikes in premarket after improving guidance

Business 1/11/2019, 3:22 PM
GM spikes in premarket after improving guidance

General Motors Co. projected a rise in earnings for this year on Friday to between $6.5 and $7 per share and expressed expectations the adjusted automotive free cash flow would land at $4.5 to $6 billion. It added it would keep the focus on core activities and electric vehicles including self-driving and mobility solutions, but also the renewal of the truck portfolio in the United States and crossovers on a global scale. The Detroit-based car producer soared 6.1% to $36.85 per share before the bell.

Cadillac is positioned to be the main electric vehicle brand, GM said. It claimed light-duty full-size pickups Chevrolet Silverado and GMC Sierra would underpin its performances this year together with the rollouts of Cadillac XT4, Chevrolet Blazer and Cadillac XT6. China and the domestic market were highlighted for the biggest potential. GM vowed to add 2,700 jobs for the 2,800 active hourly workers from November's layoff plan, which may impact 14,700 people in total.

Transformation and cost cuts of $6 billion per year through 2020 will be funded by a $3 billion revolving credit facility, the Buick maker added. It said the diluted and adjusted earnings for 2018 would top the predicted per share range of $5.8 to $6.2.

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