GM Reports Q4 Earnings, States UAW-Strike Cost $3.6bn Over The Year

After showcasing an impressive earnings report for Q3, General Motors was hit badly by the 40-day UAW strike as it posted a loss of USD 194 million for the fourth quarter. The strike halted the vehicle production in the United States entirely for over four weeks and ensured the company got no chance to regroup and post any sort of profit during the period. As per the company’s report, the UAW-strike cost them a total of USD 2.6 billion in pre-tax earning during the fourth quarter and USD 3.6 billion during the entire 2019.

Though the earnings report showed a downside for the company, the earnings did manage to beat the Wall Street expectations. The revenue for quarter four however missed the expected mark. While the Wall Street consensus expectation stood at USD 31.04 billion, GM managed to generate only USD 30.8 billion. In pre-market trading GM’s stock was at USD 30 per share, up 2.6 per cent. The entire worth of the company stands at USD 49.1 billion. As for the future is concerned, the company does promise a bright path ahead. The guidance for 2020 from General Motors has an adjusted earnings of up to USD 6.25 per share and adjusted operating cash flow of about USD 14.5 billion.

Talking about the bond between General Motors and its hourly workers, the company has promised a pay check of USD 8,000 in profit-sharing bonus to around 47,000 of its hourly workforce. The pre-tax profit sharing bonus too has suffered because of the UAW strike as the company suffered losses during the year. The current pay check is down from USD 10,750 in 2018. As per the company’s negotiations with UAW, it will share USD 1,000 with its workforce for every USD 1 billion the company earns.

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