General Motors Co. (NYSE: GM) reported its fourth quarter and full year financial results for fiscal year 2018. The automotive manufacturer reported stronger than expected results. Shares were 3.7 percent higher on Tuesday.
For the fourth quarter, General Motors reported revenue of $37.7 billion, falling 5.5 percent year over year, but beating analysts’ estimates of $36.55 billion. The company reported an adjusted EPS of $1.65, increasing 21.3 percent year over year, and beating analysts’ estimates of $1.38.
“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year. We will continue executing our plan and reshaping our company to position it for long-term success.” said Mary Barra, GM Chairman and CEO.
GM reported a net loss of $4.9 billion, which includes a $73 billion charge related to the U.S. tax reform. This also includes a $6.2 billion charge from the sale of its Opel/ Vauxhall. On a non-GAAP, GM had a net income of $3.1 billion, increasing 18.7 percent year over year.
In the full year, GM delivered 8.9 million vehicles globally, increasing only 0.8 percent year over year. GM and its joint ventures sold 4 million vehicles in China for the first time. The record sale was powered by Baojun and Buick along with Cadillac, as sales increased 51 percent.
In the full year, GM delivered net revenue of $145.6 billion, falling 2.4 percent year over year. The company also reported an adjusted EPS of $6.62, increasing 8.2 percent year over year.
GM began to reduce its U.S. inventories to align supply with demand, as the company begins to prepare launch of its crossover portfolio of the Chevrolet Traverse and Equinox, Buick Enclave and GMC Terrain. GM will also introduced its new Cadillac, the XT4 crossover.
GM is also pushing out its plan for a zero emission world as it plans to introduce at least 20 new all-electric vehicles that will launch by 2023. The company is also developing its own autonomous vehicle. GM has asked the U.S. Department of Transportation to allow it to deploy its self driving Cruise AV on public roads, a vehicle that eliminates the use of steering wheels, pedals, mirrors and other essential driving accessories.
In January, GM forecasted its full-year 2018 to be largely in line with 2017’s performance based off 2016 and 2015’s performances. By 2019, GM expects its earnings to accelerate with the introduction of its new pickups coming out later this year.