GM shareholders (GM) just received what they wanted just a few weeks ago when the auto company published the results of Q4 – cash.
General Motors announced on Wednesday that it raised its quarterly profits by $ 0.03 to $ 0.15 per share, its first increase since 2023. In addition, the company announced a “$ 6 billion re -purchase license”, with $ 2 billion in relatively soon Relatively soon in the form of a new program to purchase the participation (ASR).
General Motors shares increased by 3 % in the pre -market trade.
“The execution of the General Motors team is still strong in all the three columns of our capital allocation strategy, which is to re -invest in work for profitable growth, maintain a strong investment budget, and return capital to our shareholders,” said Marie Para. The CEO and the president in a statement.
Near: February 25 at 4:00:02 pm EST
When General Motors announced the profits of the fourth quarter in the past month, the shares were traded less as investors were disappointed because the company did not return any money to shareholders in the form of a new stock purchase plan.
Last year, General Motors released the shares to purchase up to 6 billion dollars from its suspended joint shares. This was an addition to the accelerated ASR (ASR) program of $ 10 billion, which he presented at the end of last year, which coincided with a plan to increase its profits by 33 %, starting last January.
During the analysts' call last month, GM CFO Paul Jacobson said that the administration and the council would try to discover a “wise” method to expand these plans, and it seems that it did so.
“We are confident in our business plan, our public budget is still strong, and we will be graceful if we need to respond to changes in public policy,” Jacobson said in a statement today. “The purchase license approved by our accredited council continues to adhere to our capital allocation policy.”
General Motors added that spending the capital 2025 will remain between 10 billion dollars to 11 billion dollars, including investments in batteries manufacturing projects in General Motors, with the expectation that research and development on products are expected more than $ 8 billion.
Last month, General Motors expected a 2025 profit in obtaining a scale between 13.7 billion dollars to 15.7 billion dollars, with a low minimum but the highest level higher than 2024. The profitability of the diluted and average share is seen from $ 11.00 to $ 12.00 a year, However, the company. The effects of any tariffs on the White House designed Trump on imported vehicles or suppliers parts.
Earlier this month at the Wolf Motor Research Conference, Bara said the company Up to 50 % of the effect of customs tariffs can be reduced By converting a vehicle and production parts elsewhere.
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