This morning GM released their financial reports for the third quarter. For UAW members there is both good and bad news. Let’s start with the GOOD news – North American Earnings sit at $10.7 billion!
This brings us to a couple more issues, What (guidance) does GM expect for the year regarding profits? What other plans do they have?
But the big update was guidance. For the full year, GM now expects:
Adjusted EBIT of $14.5 billion to $15.5 billion (prior $14 billion to $16 billion)
The estimated profit for year-end was adjusted down about a half-billion. That said, this is the total profit not the North American total so stay tuned.
The other news was the plan to purchase another $20 billion in a stock buyback…
GM’s board approved a new $20 billion multiyear authorization with no expiration date. GM also declared a quarterly dividend of $0.18 per share.
“We think this is a proven strategy,” GM CEO Mary Barra wrote in her letter to shareholders. “The new $20 billion multiyear share repurchase authorization we announced today further demonstrates our board’s commitment to creating even greater shareholder value.”
From a union perspective this is very interesting. As in it will be interesting to see if they claim poverty when the next round of contract negotiations begins in early 2028. Money for buybacks but no money for the labor that makes the profit is not acceptable.
