DETROIT, Jan. 14, 2015 /PRNewswire/ --
- Expects higher EBIT-adjusted and EBIT-adjusted margins in
2015
- Reaffirms previously announced 2016 targets and plan to
achieve
9- to 10-percent margin by early next decade
General Motors Co. (NYSE: GM) expects its total earnings before
interest and tax (EBIT) adjusted and EBIT-adjusted margin to
increase in 2015, compared to 2014, after adjusting 2014 for the
impact of recall costs. The company also anticipates improved
automotive results in all regions.
This outlook is based on modest global industry growth expected
in 2015, which will result primarily from continued growth in
China, Europe and the
United States, and ongoing launches of key vehicles.
CEO Mary Barra, President
Dan Ammann, and Executive Vice
President and Chief Financial Officer Chuck
Stevens shared this outlook with investor analysts attending
the Deutsche Bank 2015 Global Auto Industry Conference in
Detroit.
GM reiterated it is on track to meet its previously announced
2016 financial targets to achieve EBIT-adjusted margins in
North America of 10 percent;
to return to profitability in Europe, and to maintain strong margins in
China.
The company also said its plan puts it on the path to achieve 9-
to 10-percent margins by early next decade. The strategic plan,
shared during the Global Business Conference in October 2014, includes several major initiatives:
lead in product and technology; grow the Chevrolet and Cadillac
brands globally; continue growing in China; continue growing GM Financial, and
deliver core operating efficiencies.
"We had a pivotal year in 2014, outlining a customer-focused
strategic plan for the company and delivering on our commitments by
achieving strong core operating performance," Barra said. "We'll
build on this momentum in 2015 and continue executing our plan to
become the most-valued automotive company."
Among key accomplishments for 2014, Barra noted the
following:
- Earned the most J.D. Power Initial Quality Study awards for
second consecutive year in the United
States.
- Launched more models in North
America with 4G LTE mobile broadband than all other
automakers combined.
- GM and its joint ventures sold a record 3.5 million vehicles in
China, up
12.0 percent from 2013.
- Opel/Vauxhall market share in Europe grew for the second year in a row,
including increases in 12 European markets.
- Achieved five straight quarters of EBIT-adjusted margin growth
in North America through the third
quarter of 2014 (excluding recalls).
- Standard & Poor's upgraded GM and GM Financial to
investment grade.
- Returned $2.0 billion to common
stock shareholders through dividends.
To support its future growth, GM plans to increase capital
expenditures to approximately $9
billion in 2015, reflecting increased investments in
products and technologies.
"Overall, 2014 was a very solid year in which we met
expectations on core operating performance, despite a number of
significant headwinds," Stevens said. "Importantly, improvements in
2015 will keep us firmly on track to meet our near-term objectives
and demonstrate solid progress toward our targeted margins of 9 to
10 percent by early next decade."
General Motors Co. (NYSE:GM, TSX: GMM) and its partners
produce vehicles in 30 countries, and the company has leadership
positions in the world's largest and fastest-growing automotive
markets. GM, its subsidiaries and joint venture entities sell
vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden,
Jiefang, Opel, Vauxhall and Wuling brands. More information on the
company and its subsidiaries, including OnStar, a global leader in
vehicle safety, security and information services, can be found at
http://www.gm.com
Forward-Looking Statements
In this press release and
in related comments by our management, our use of the words
"expect," "anticipate," "possible," "potential," "target,"
"believe," "commit," "intend," "continue," "may," "would," "could,"
"should," "project," "projected," "positioned" or similar
expressions is intended to identify forward-looking statements that
represent our current judgment about possible future events. We
believe these judgments are reasonable, but these statements are
not guarantees of any events or financial results, and our actual
results may differ materially due to a variety of important
factors. Among other items, such factors might include: our ability
to realize production efficiencies and to achieve reductions in
costs as a result of our restructuring initiatives and labor
modifications; our ability to maintain quality control over our
vehicles and avoid material vehicle recalls; our ability to
maintain adequate liquidity and financing sources and an
appropriate level of debt, including as required to fund our
planned significant investment in new technology; the ability of
our suppliers to timely deliver parts, components and systems; our
ability to realize successful vehicle applications of new
technology; the overall strength and stability of our markets,
particularly Europe; and our
ability to continue to attract new customers, particularly for our
new products. GM's most recent annual report on Form 10-K and
quarterly reports on Form 10-Q provides information about these and
other factors, which we may revise or supplement in future reports
to the SEC.
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SOURCE General Motors