DETROIT (AP) – Optimistic executives at General Motors say strong sales in two core markets, the U.S. and China, along with cost-cutting will power the company to higher profits in 2017.
CEO Mary Barra and President Dan Ammann told a Deutsche Bank auto industry conference in Detroit to expect pretax adjusted earnings per share of $6 to $6.50 this year, up 50 cents from guidance issued for 2016. GM also said 2016 earnings would be at the high end of its guidance of $5.50 to $6 per share. GM reports 2016 results next month.
Barra said revenue would be higher this year than last, with an improved pretax profit margin, which was 8 percent in the third quarter.
She also addressed the incoming Trump administration, which has criticized the auto industry and GM specifically for building cars in Mexico instead of in the U.S. with American workers. She said she plans to stress GM’s record as a job creator in the U.S. when she speaks to Trump.
GM also said it will buy back another $5 billion in stock. GM shares were up 4 percent to $37.45 in afternoon trading after hitting a 52-week high of $38.16 shortly after the outlook was issued.