Home Business GM Shares Soar on Raised Profit Outlook

GM Shares Soar on Raised Profit Outlook


General Motors shares have soared after the company announced it would be more profitable and return more money to shareholders.

Shares in America’s biggest automaker rose more than 2% after it raised its 2016 earnings forecast by 25 cents to between $5.25 and $5.75 per share.

GM also plans to raise its stock buyback program by 80% to $9 billion and extend it to the end of 2017.

In total it plans to give $16 billion back to shareholders by the end of 2017.

Photo AP

Photo AP

GM executive Mary Barra said: “We made significant progress executing our strategic plan and the results are being demonstrated through our improved earnings.”

Shares in rival automaker Ford fell more than 3.5% after it said US margins could hit a plateau of 9.5%.

Ford said on January 12 it would give a special $1 billion dividend, and that it expects pre-tax profit of between $10 billion and $11 billion in 2015.

However, this figure was at the lower end of analyst expectations.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.