--
 
New Sasol GTC cars set for thrills

The iconic Grand Prix Circuit will present a new challenge to the GTC drivers as they tackle the country’s fastest racetrack on June 16.

Suzuki’s new Swift hatch and sedan in SA

Suzuki kicks off its new model assault with an all new Swift hatchback and standalone sedan called the Dzire.

Record year for GM: Automaker plans huge bonus for workers

2016-02-04 08:56

RECORD PROFIT YEAR: US automaker General Motors recorded a pretax earnings of over $11-billion for 2015, paving the way for their 49 600 hourly workers to benefit from an $11 000 bonus. Image: AFP

Detroit, Michigan - Strong earnings in North America and China and a reversal of fortunes in Europe powered General Motors to a record net profit of $9.7-billion in 2015.

The profit more than doubled GM's 2014 earnings and was aided by a $3.9 billion fourth-quarter accounting gain because prospects for turning a profit in Europe are good. The company expects to break even there this year.

Excluding special items, GM earned $5.02 per share in 2015, beating Wall Street estimates of $4.82. Profits were fueled by strong SUV and truck sales largely in North America.

Huge worker bonus

Full-year revenue fell just over 2% to $152.4-billion, but still beat analyst estimates of $144.9-billion.

Earnings were so strong that most of GM's 49 600 hourly workers will get $11 000 profit-sharing checks on February 26. The checks were based on North American pretax earnings, which hit a record of just over $11-billion for the year.

CEO Mary Barra said: "We continue to strengthen our core business, which is laying the foundation for the company to lead in the transformation to personal mobility."

GM recently invested $500-million in ride-hailing service Lyft and has announced plans to start its own car-sharing services in metro areas worldwide as it prepares for the next generation of transportation.

For the fourth quarter, GM posted a $6.3-billion net profit. Without special items, the company earned $1.39 per share, beating estimates of $1.20.

Fourth-quarter revenue was flat at $39.6-billion, just below Wall Street estimates.

Its shares jumped 38 cents, or 1.3% , to $30.03 in premarket trading about an hour and half before the market open.

NEXT ON WHEELS24X
Read more on:    general motors  |  auto industry

There are new stories on the homepage. Click here to see them.