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GM says 2018 results exceeded expectations and 2019 looks even better



General Motors CEO Mary Barra said the automaker's earnings for the full year 2018 exceeded their previous expectations and that 2019 looks even better, given strong sales in China and high demand for their trucks and commercial vehicles in the US

8 adjusted earnings of between $ 5.80 and $ 6.20 per share and adjusted car-free flow of $ 4 billion. outperform these forecasts and painted an even better picture of 2019, said Barra on Friday.

She predicts diluted adjusted earnings per share between $ 6.50 and $ 7 and adjusted car-free cash flow $ 4.5 billion to $ 6 billion for 2019 [19659003] GM's shares increased by 6 percent in premarket trading on the news.

Barra also said that GM blocked his belt last year and contributed to increasing profits. of several plant closures and 14,000 laborers in November. The reorganization is estimated to save about $ 6 billion by the end of 2020, with about half of the cost savings made before the end of 2019, the company said at that time.

Barra said the job cuts were a "proactive" move on an otherwise strong labor market.

"We've been transparent with [United Auto Workers union] helping them and making sure they understand the business and changing customer preferences," she told reporters on a Friday morning conversation. [19659003] GM is planning to expand its footprint abroad with a global family of vehicles that it will launch in China this year, Barra said on the call. She said GM has 20 new or updated products coming out in China.

"When you go back and look at China, we have been there for 20 years, we have had tremendous success, we have very strong brands," she said. "We think that trade negotiations that are happening right now are very constructive, the fact that they have extended this round to have even more discussion, the next is already planned. We know that there are discussions about sustainable goods stimulating in the country that we think will apply to cars. "

Cadillac becomes the company's leading electric car brand, it said. It projects just over 17 million in US total car sales in 2019 and 27 million in China – approximately from 2018. She said that annual car sales in China will climb up to 30 million.

WATCH:
CNBC's full interview with General Motors CEO Mary Barra


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