- This topic has 4 replies, 2 voices, and was last updated 5 years, 8 months ago by
.
- Posts
For all the government money i.e. the people’s they have some issues. A lazy billion extra on OPEL gone, sales way down – the Chevy Volt might give Elon a run though ….
General Motors Company downgraded by Zacks Investment Research to strong sell.
Zacks Investment Research note
“General Motors underperformed the industry it belongs to over the last six months. Also, over the past 30 days, both its second-quarter and full year earnings estimates have declined. General Motors expects weak used car pricing, a challenging pricing environment in the U.S. and China as well as more pressure on commodity costs in 2017. Also, the company’s decision to halt sale of cars in India, sale of its South African business and streamlining the Singapore office, is a downside to it. Also, a high inventory level of passenger cars is a concern before it. Moreover, the company has been forced to scale down or shut its manufacturing operations in some regions due to production constraints such as high costs and unfavorable currency translation effects.” (7/24/2017)
GM reported second-quarter net income of $2.4 billion or $1.60 per share, down from $2.8 billion or $1.74 per share a year earlier. Excluding one-time charges, the company reported earnings per share of $1.89. Analysts had on average expected earnings per share for the quarter of $1.69.
“Disciplined and relentless focus on improving our business performance led to a strong quarter and very solid first half of the year,. We will continue transforming GM to capitalize on growth opportunities and deliver even more value for our shareholders,” CEO Mary Barra said in a statement.
GM delivered 725,000 total vehicles in the United States, with a 24-percent increase in retail crossover sales.
GM also continued its strategy of focusing in profitable retail sales, rather than maintaining sales volumes with the fleet business.
According to the company, “rental sales were 6 percent of total vehicle sales in Q2, the lowest of any full-line automaker.”
In China,
GM cited “strong sales” of its luxury brand, Cadillac.GM delivered 852,000, “a second-quarter record, up 1.6 percent compared the same quarter last year.
Guidance
Expects the India and South Africa restructuring announcements to generate $0.1Bil of run rate EBIT-adjusted improvements on an annual basis. Following the close of the Opel/Vauxhall transaction, GM sees to reduce its average cash balance target to $18Bil.
With $GM’s plan to phase out the Chevrolet brand in South Africa and India markets by the end of 2017, GM China plans to introduce 10 new models in the second half of 2017. Chevrolet will introduce the Bolt EV in the U.S. markets nationwide by August 1.
Source: GM, AlphaStreet
- You must be logged in to reply to this topic.