Page 25 - ARUBA TODAY

BUSINESS Wednesday 8 February
A25

GM posted $9.4B net profit in 2016, but encore may be tough

larger presence in China are shifts, they have to hap-
and newer products, es- pen over time,” she said.
pecially in profitable trucks Still, the uncertainty pushed
and SUVs that are becom- GM’s shares down $1.80, or
ing increasingly popular 4.9 percent, to $35.03 in
with U.S. and global buyers. midday trading Tuesday.
But Barclays analyst Brian GM’s full-year net profit fell
Johnson says GM is at risk just under 3 percent, but
should President Donald it reported a record pre-
Trump impose a 20 percent tax profit of $12 billion in
tax on vehicles imported North America. That means
from south of the border. big checks for most of the
About 20 percent of GM’s 52,000 union workers, who
North American produc- will get $12,000 each, cost-
tion is in Mexico, higher ing the company $624 mil-
than both its Detroit rivals, lion. That’s up from $11,000
Johnson wrote in a recent last year.
note to investors. Plus, 42 GM said Tuesday that it
percent of GM’s Silverado made $6 per share for the
and Sierra pickup trucks, year. Without special items
which are two of the com- it made $6.12, beating Wall
pany’s highest-revenue ve- Street expectations by a
hicles, are made at a plant dime, according to a sur-
This photo shows the General Motors logo at the company’s world headquarters in Detroit. On Feb. in Silao, Mexico, and could vey by FactSet.
7, 2017, GM reported financial results. be hit by a tax, Johnson Despite looming issues,
(AP Photo/Paul Sancya) wrote. GM estimates it will earn a
GM executives said Tues- pretax profit this year in a
TOM KRISHER On Tuesday, the company America. And a new U.S. day that it’s too early to range from $6 to $6.50 per
AP Auto Writer partly delivered, reporting president wants to redo the tell exactly what will hap- share. Johnson wrote that
DETROIT (AP) — At an in- a 16 percent increase in North American Free Trade pen with a border tax. CEO he’s “somewhat skeptical”
vestors’ conference during last year’s pretax income. Agreement and could slap Mary Barra, a member of of GM’s full-year guidance.
Detroit’s auto show in Janu- An encore could be a lot a border tax on imports Trump’s council of busi- Edward Jones analyst Jeff
ary, confident General Mo- harder. from Mexico. All of these ness leaders, said she has Windau gives GM shares a
tors executives told inves- Overall auto sales are flat- will make it hard for GM to explained the complexity “hold” rating but also thinks
tors to expect improved tening in the U.S., GM’s beat last year’s net income of the auto industry to the the company’s optimism
pretax profits for 2016 and biggest profit center, and of $9.4 billion. president, detailing its long for 2017 is justified. GM, he
2017, thanks to strong sales car inventories are grow- Financial analysts say GM decision-making times for said, is on track to cut costs
in key markets and cost ing. Economic troubles lin- has big advantages over picking parts suppliers and by $6.5 billion per year by
cuts. ger in Europe and South most competitors with a
locating factories. “If there 2018, over 2014 levels. q

Tyson reveals SEC inquiry, likely tied to price-fixing suits

CANDICE CHOI er chickens since at least non-public information tory filings were misleading declined to comment be-
AP Food Industry Writer 2008. It said the primary about prices, sales volume and did not make proper yond their public filings. A
NEW YORK (AP) — Tyson method to do so was “limit- and demand. disclosures, repeating the representative for Pilgrim’s
Foods says it’s being inves- ing their production.” Subsequently, another law- allegations of collusion in Pride did not immediately
tigated by the Securities Late last month, Tyson, Pil- suit by a Tyson shareholder the previous suit. respond to a request for
and Exchange Commis- grim’s Pride, Sanderson said the company’s regula- Tyson and Sanderson Farms comment.q
sion, likely in connection Farms and the other chick-
with lawsuits alleging that en companies named in
the poultry company and the suit filed a motion to
others engaged in price- dismiss the actions. The
fixing activities. motion said production of
The Springdale, Arkansas- broiler chickens grew dur-
based company says in a ing the period named in
regulatory filing that it re- the lawsuit.
ceived a subpoena from The suit by New York-based
the SEC on Jan. 20. It says Maplevale Farms had said
it is cooperating with the the limiting of production
investigation, which is in an by the companies included
“early stage.” an “unprecedented” de-
Tyson says it believes the struction of breeder hens in
investigation is related to 2008, and a second wave
allegations that it violated of “coordinated produc-
antitrust laws. In Septem- tion cuts” in 2011 and 2012.
ber, a class-action lawsuit It said the consequences
had said Tyson, Pilgrim’s of those cuts “continue to
Pride and other poultry reverberate.”
producers conspired to In addition, the suit said the
“fix, raise, maintain and companies exchanged
stabilize” the price of broil- competitively sensitive,