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GM's "slimming" is difficult to offset the impact of the strike, and the impact of the strike on the fourth quarter is less than expected, resulting in a decline in annual performance.
The 40-day strike made GM's profitable business in the United States passively stagnate, resulting in lower-than-expected revenue in the fourth quarter. Last year, the $2.5 billion brought by restructuring failed to offset the negative impact of the strike, and its annual performance declined.

Author? |? Li Xiang? Editor? Lanrence

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On February 5th, GM released 20 19 financial report data. The data shows that the company's annual net income was $65,438+$0,372.37 billion, down 6.7% year-on-year. The net profit was $6.7 billion, down 17.4% from $8 1 billion in 20 18.

Looking back at the fourth quarter of 20 19, the operating income was $30.83 billion, which was lower than the expected $930 million, with a year-on-year decrease of 19.7% and a net loss of $232 million. General Motors said that this was mainly affected by the 40-day workers' strike. After annual adjustment, the profit before interest and tax was 3.6 billion US dollars, and the cash flow of automobile business decreased by 5.4 billion US dollars to 65,438 US dollars+0,654.38 billion US dollars.

After combing, the car prophet found that GM showed a warming trend in the third quarter, but the workers' strike once again hindered the development of the American auto industry and the growth of GM's operating income. Some analysts said that thanks to the crazy slimming since 20 18, the performance in 20 19 was basically stable.

1

Strike offset the cash flow advantage brought by GM's cost reduction.

The financial report shows that the annual net income was $654.38+$037.237 billion, a decrease of 6.7% compared with the same period last year; The net profit was USD 6.7 billion, down 65,438+07.4% year-on-year; The adjusted profit before interest and tax was $8.4 billion, a year-on-year decrease of 28.8%; The adjusted profit margin before interest and tax was 6. 1%, which was lower than 1.9 percentage points in the same period last year. Among them, the net income in the fourth quarter was $30.8 billion, down 65,438+09.7% year-on-year, and the profit decreased by $3.6 billion. The financial report pointed out that the main reason for this problem is that the 40-day strike of the United Auto Workers Union led to the closure of GM's profitable business in the United States.

General Motors quarterly earnings? Source: British Finance.

On September 16, EDT, UAW organized 35 manufacturing plants from 10 states and 46,000 general workers from dozens of distribution centers to go on strike. Affected by the strike, the cash flow of GM's business unit plummeted by $5.4 billion to 1 1 billion, and earnings per share fell to $4.57.

As a result, the labor cost increased greatly after the strike. According to the new contract, GM promised to directly invest 7.7 billion US dollars in American factories to create or retain about 9,000 jobs. By 2023, the total investment expenditure may reach 9 billion US dollars.

Some insiders said that GM's 20 19 net profit was achieved by controlling costs. After the strike broke out, it not only directly brought huge economic losses to GM, but also brought higher labor costs, totaling more than 3.6 billion. According to the data, GM's net profit in 2065,438+08 was $86,543,800 million, including $2.5 billion in restructuring-related expenses. GM's diluted earnings per share in the fourth quarter was $65,438+$0.40, and the adjusted diluted earnings per share was $65,438+$0.43. At that time, GM's restructuring effect not only achieved initial results, but also improved earnings per share to protect investors. After the strike, its negative impact is not only reflected in the financial report, but also has a negative impact on GM's production layout, product planning and automobiles.

2

Major markets have dropped significantly? China's market income is close to the waist

According to the statistics of automobile research and forecasting institutions, including domestic and foreign automobile manufacturers, the sales volume of light vehicles in the United States decreased by 1.6% year-on-year in 20 19, which was less than17170,000 vehicles. Although it has been higher than170,000 vehicles for five consecutive years, many institutions and people are still not optimistic about the US auto market, they said.

Affected by the above, in 20 19, the sales of the three major American automakers and large overseas auto companies such as Toyota declined in Japan. Ford's local sales fell to 2.4 million units, down 3%; GM sales fell to 2.9 million units, down 2.3%; FCA sales fell to 2.2 million units, down by 65,438+0.4%; Toyota Motor, a non-local car company, sold less than 2.4 million vehicles in 20 19, a year-on-year decrease of 1.8%.

Relevant institutions pointed out that non-housing loans rose to a record high, the growth of retail expenditure slowed down, the deterioration of consumer credit and the rising default rate are all potential problems facing the US auto industry, and new car sales will continue to decline in 2020.

At the same time, GM said that in 20 19, the sales of new cars in China dropped by 15% to 3.09 million vehicles, which was the second consecutive year of decline. The equity income of the joint venture company is only $65,438+065,438+32 million, down 42.8% year-on-year, almost halved. Although many models were introduced, they failed to reverse the depressed automobile market.

Some analysts pointed out that there are many brands of GM in China, and the competition among many products is internally divided. The three-cylinder products promoted by GM also failed to change consumers' inherent cognition. Judging from the market data, the decline of three-cylinder models is particularly obvious. It is reported that SAIC-GM will gradually switch back to a four-cylinder engine in 2020.

three

The performance of GM can better reflect the American automobile industry.

It is undeniable that Ford has the highest sales volume in the United States, but from the perspective of product structure, Ford has stopped the research and development of most of its automobile business. On the other hand, GM's product line is more comprehensive, especially in the field of new energy. Recently, it was announced that it would invest $2.2 billion in the hammock factory in Detroit, Michigan, to produce various brands of pure electric trucks and SUV models, including the brand-new GMC Hummer. Among them, the pure electric pickup truck will be officially put into production in the autumn of 20021. For the China market, after buick VELITE? Following the launch of electric vehicles, Chevrolet's first all-electric vehicle, Menlo, will be launched soon. Baojun will continue to increase its NEV product portfolio, and Wuling will also increase all-electric vehicles this year. ?

The electrification field also includes the factories of General Motors and LG Chem in Lauderston, Ohio, with an annual production capacity of more than 30GWh, and the brand-new pure electric self-driving model Origin released by Cruise, a subsidiary of General Motors, in June+10 this year. It is reported that in 2020, GM will release a series of products including Chevrolet Tahoe and Suburban, GMC? Yukon and Yukon? XL, Cadillac Escalade and other important models.

Some analysts said that from striving for conservative stability to actively trying new sectors, GM's territory is constantly expanding, and from product layout adjustment to energy structure transformation, GM has been following the trend at a faster pace. In addition, GM and its branches have drawn a detailed organizational chart, in which the status of shareholders is placed in the highest position and the decentralization is more clear.

Mary, Chairman and CEO of General Motors? Barra said: "GM is continuing to promote its future-oriented transformation, focusing on sustainable development and achieving long-term and stable business development. We believe that electrification and automation strategies can not only improve the environment, but also create more value for shareholders. " For the performance outlook in 2020, GM said that it expects the adjusted diluted earnings per share to be in the range of $5.75 to $6.25, and the cash flow generated by automobile business activities will remain in the range of $65.438+03 billion to $65.438+045 billion. Its core is still the continuous cost control measures and effective inventory management around the American market.

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.