No need for an introduction to one of the companies that has most been in the US’ and Mexican news recently, General Motors has received plenty of flack in the months leading up to and following President Trump’s entry into office for its international manufacturing strategy.
But revenue for the financial division totaled US$43.9 billion, up 10.8 percent in 2016 on the previous year.
The good news are all round with the highlights of GM Financial’s report leading with “net income of $254 million for the quarter ended December 31, 2016, compared to $131 million for the quarter ended December 31, 2015.”
The year ended on US$9.56 million before costs and expenses, much improved on the US$6.45 million received in 2015. The company reported net income of US$754 million also improved on last year’s US$646 million.
The press report stated that GM Financial’s equity investment in SAIC-GMAC rendered earnings of US$42 million, compared to the US$31 million received for the last quarter of 2015. For the full year of 2016 this added up to make a total US$151 million on December 31, 2016.
These results will contribute to the company’s results meaning that GM employees in the US will receive up to a maximum profit sharing of US$12,000. The automaker tags the automaker’s successful results on “strong retail demand for full-size trucks and SUVs in the United States, continued industry growth in China and effective cost performance across the globe.”
Ten analysts have estimated the stock at US$1.14, an almost 18 percent decrease from the same quarter last year. GM beat the expectations every quarter in 2016, however. Zacks Investment expects that the company will enjoy a higher earnings growth than competitors in the automotive industry.
Data sources: Nasdaq, GM.