DETROIT: General Motors Co on Tuesday reported a higher quarterly net income for the fourth quarter, and forecast stronger-than-expected earnings in 2023, sending its shares up over 5% in premarket trading.
The company expects its core auto operations to perform at a consistently strong level in 2023, with full-year net income attributable to stockholders of $8.7 billion-$10.1 billion, adjusted EBIT of $10.5 billion-$12.5 billion, and diluted and adjusted earnings per share of $6.00-$7.00. Analysts had expected $5.73 a share, according to Refinitiv IBES data.
For the full year, GM’s profit dropped to $9.9 billion from $10 billion in 2021. EBIT-adjusted income of $14.5 billion was a record, up slightly from $14.3 billion a year earlier.
The company expects adjusted automotive free cash flow of $5.0 billion to $7.0 billion in 2023, with net automotive cash from operating activities of $16.0 billion to $20.0 billion.
In the fourth quarter, GM earned $2.0 billion, up from $1.7 billion the previous year. EBIT-adjusted income of $3.8 billion topped the year-earlier $2.8 billion, as higher prices and increased sales volume in North America more than offset higher costs.
GM reclaims US auto sales top spot from Toyota
GM’s average vehicle selling price in North America hit a record $51,000 in 2022, as the company focused production on more expensive, higher-margin vehicles.
Diluted adjusted earnings per share of $2.12 in the quarter compared with $1.99 a year earlier. Analysts had predicted $1.69.
GM said capital spending will range between $11 billion and $13 billion in 2023, up from $9 billion in 2022.
Ahead of the earnings release, the automaker said it would invest $650 million in Lithium Americas and jointly develop a lithium mine in Nevada that it says is the largest known source of the key battery material in the United States.
The company expects revenue from electric vehicles to reach $50 billion in 2025 – about 22% of total revenue – with pre-tax margins in the low to mid-single digits.
GM reaffirmed plans to build a fourth battery plant in the U.S., but did not say when.