GM profit rises in Q4 2022; expects strong earnings in 2023

GENERAL Motors (GM) on Tuesday (Jan 31) reported a higher quarterly net profit for the fourth quarter of 2022, and forecast stronger earnings in 2023, sending its shares up over 5 per cent in premarket trading.

Last quarter, GM earned US$2 billion, up from US$1.7 billion in the same period the year before. Its adjusted earnings before interest and taxes (Ebit) of US$3.8 billion topped the year-earlier US$2.8 billion, as higher prices and increased sales volume in North America more than offset higher costs.

Diluted adjusted earnings per share rose to US$2.12 in the quarter, from US$1.99 a year earlier.

For the whole of 2022, the company’s profit dropped to US$9.9 billion from US$10 billion in 2021. Its adjusted Ebit of US$14.5 billion was a record, up slightly from US$14.3 billion the year before.

GM said it expected its core auto operations to perform at a consistently strong level in 2023. It estimated full-year net income attributable to shareholders of between US$8.7 billion and US$10.1 billion, adjusted Ebit of US$10.5 billion to US$12.5 billion, and diluted and adjusted earnings per share of US$6 to US$7.

The company added that it expected adjusted automotive free cash flow of between US$5 billion and US$7 billion this year, with net automotive cash from operating activities at between US$16 billion and US$20 billion. REUTERS