General Motors (GM 40.44, +0.90) has climbed 1.9% in pre-market after beating earnings expectations.
The automaker reported above-consensus fourth quarter earnings of $1.65 per share on a 7.7% year-over-year drop in revenue to $34.48 billion, which was a bit ahead of expectations.
GM's non-GAAP EBIT-adjusted margin increased 170 basis points to 8.2%. For the full year, non-GAAP EBIT-adjusted margin edged up 20 basis points to 8.8%.
Strong sales of the company's latest crossovers and improved cost controls led to a record EBIT-adjusted profit of $3.10 billion, which increased 18.7% year-over-year. The company recorded a GAAP loss of $4.90 billion during the fourth quarter due to a $7.30 billion charge related to revaluation of deferred tax assets due to U.S. tax reform.
On an EBIT-adjusted basis, the company earned $2.90 billion from its operations in North America, up from $2.70 billion earned one year ago. The International segment generated EBIT-adjusted profit of $400 million, up from $200 million one year ago. GM Financial generated EBIT-adjusted profit of $300 million, up from $200 million one year ago.
GM ended the year with an underfunded global automotive pension of $14.10 billion, which was an improvement from $18.20 billion one year ago.
Looking ahead, the company expects that its results for fiscal year 2018 will be roughly in line with results from 2017. The company expects that earnings growth will accelerate in 2019 due to the planned launch of all-new full-size pickups later this year.