GM General Motors Company

By Mike Colias 

General Motors Co.'s fourth-quarter profit was nearly wiped out by a 40-day union strike that shut down its U.S. factories last fall, putting pressure on the auto maker to get off to a fast start in 2020.

The company said Wednesday its operating profit in the October-to-December period plunged 96% to $105 million, reflecting lost production in October as workers continued to picket its plants after the company and union failed to reach a new labor contract in September.

Adjusted earnings per share totaled 5 cents, better than analysts' average forecast of 1 cent.

Net income reversed to a $194 million loss in the fourth quarter, from a $2 billion profit a year earlier. Revenue fell 20%, to $30.8 billion.

GM said it should get a lift this year from the rollout of redesigned versions of the Cadillac Escalade, Chevrolet Suburban and other big sport-utility vehicles -- among its biggest moneymakers -- and cost savings from plant closures and white-collar layoffs last year. But it also expects a pullback in its two primary markets, China and the U.S.

The nation's largest auto maker by sales said it expects earnings per share for 2020 to be in the range of $5.75 to $6.25. Analysts had expected $6.28 on average, according to S&P Global Market Intelligence.

The 40-day strike punctuated a difficult year for GM. The company took heat from President Trump and other elected officials for closing several U.S. factories. It lost market share in the lucrative pickup-truck category. Sales slid in China, where its profit was cut nearly in half, to about $1.1 billion.

For the year, GM's operating profit fell 17% to $6.7 billion, dented by the strike, which shaved $3.6 billion from the bottom line in the third and fourth quarters.

Write to Mike Colias at Mike.Colias@wsj.com

(END) Dow Jones Newswires

February 05, 2020 08:35 ET (13:35 GMT)

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