General Motors has revised its profit forecast for 2016, expecting an increase in earnings despite signs of trouble in China.
The company expects its adjusted earnings per share to hit $5.25 to $5.75, up from an early October estimate of $5.00 to $5.50. EBIT-adjusted margin is also predicted to increase, along with free cash flow.
Reflecting the optimistic expectations for 2016, the automaker has promised to nearly double its stock repurchase program to $9 billion. The initiative has also been extended through 2017, while dividends have been increased by six percent to $0.38 per share beginning in the first quarter of this year.
“We made significant progress executing our strategic plan and the results are being demonstrated through our improved earnings,” said CEO Mary Barra at the Deutsche Bank Global Auto Industry Conference in Detroit this week.
Profits are expected to be bolstered by global growth of the Chevrolet and Cadillac brands, increased sales in China, improved operating efficiencies and leadership in products and technology.
“We are making the right investments and taking the actions necessary to lead in the transformation of personal mobility, and positioning the company to continue to drive shareholder value,” Barra added.
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