GM - General Motors Company
| Previous close | 36.19 |
| Open | 36.09 |
| Bid | 36.20 x 2200 |
| Ask | 36.39 x 3000 |
| Day's range | 36.01 - 36.37 |
| 52-week range | 30.56 - 41.90 |
| Volume | 6,302,191 |
| Avg. volume | 8,058,400 |
| Market cap | 51.641B |
| Beta (3Y monthly) | 1.25 |
| PE ratio (TTM) | 5.76 |
| EPS (TTM) | 6.28 |
| Earnings date | 29 Oct 2019 |
| Forward dividend & yield | 1.52 (4.15%) |
| Ex-dividend date | 2019-09-05 |
| 1y target est | 47.44 |
- Reuters
Exclusive: Electric Hummer could be part of GM's move into EV trucks, SUVs - sources
WASHINGTON/DETROIT (Reuters) - General Motors Co plans to build a new family of premium electric pickup trucks and sport-utility vehicles at its Detroit-Hamtramck plant beginning in late 2021, possibly reviving the imposing Hummer brand on some of them, several people familiar with the plans said. The so-called BT1 electric truck/SUV program is the centerpiece of a planned $3 billion (2.3 billion pounds) investment in the Detroit-Hamtramck plant to make electric trucks and vans, and part of a broader $7.7 billion investment in GM's U.S. plants over the next four years, according to a proposed labor deal between the automaker and the United Auto Workers union. The investment would move the automaker into a part of the EV market that is largely untested and where GM has a higher likelihood of turning a profit, analysts said.
- Reuters
General Motors strike to slash U.S. October payrolls - JPMorgan
A month-long strike at General Motors could cut U.S. job growth by as much as 75,000 in October, JPMorgan economist Daniel Silver said on Friday, an unwelcome development amid financial market fears of a recession. Silver said in a research note that the estimated hit to nonfarm payrolls would be the result of both direct and indirect effects of the strike by about 48,000 workers at the automaker. The estimate draws comparisons with the 1998 strike at GM, which JPMorgan estimated depressed payrolls in July of that year by about 150,000 jobs.
- Reuters
General Motors strike to slash U.S. October payrolls: JPMorgan
A month-long strike at General Motors could cut U.S. job growth by as much as 75,000 in October, JPMorgan economist Daniel Silver said on Friday, an unwelcome development amid financial market fears of a recession. Silver said in a research note that the estimated hit to nonfarm payrolls would be the result of both direct and indirect effects of the strike by about 48,000 workers at the automaker. The estimate draws comparisons with the 1998 strike at GM, which JPMorgan estimated depressed payrolls in July of that year by about 150,000 jobs.
- Zacks
Auto Stock Roundup: Ford Q3 China Sales Dip, Tesla Q3 UK Sales Hit a Record & More
While Ford's (F) sales in China fall 30.3% year over year in Q3, Tesla takes the U.K. market by storm with record deliveries of 6,244 vehicles.
- Zacks
Is Ford's Charging Network a Headache for Tesla?
Ford's charging network will help competition heat up, but there can be positive kickbacks.
- Zacks
Manufacturing & Retail Worries, Brexit, Q3 Earnings & Buy Google Stock - Free Lunch
Signs of hope for a Brexit deal and U.S.-China trade war updates. Some disappointing U.S. manufacturing and retail data. Q3 earnings results from the likes of Netflix. And why Google parent Alphabet is a Zack Ranks 1 (Strong Buy) stock. - Free Lunch
- Market Realist
After Boeing, GM Strike Disrupts Trump’s MAGA Plans
The GM strike hurt US manufacturing for September while earlier this month, Boeing’s orders fell. Now Trump's 2020 campaign could take a hit.
- Reuters
UAW deal with GM to end strike includes pay raises, but three plants would close
The United Auto Workers union wrung higher pay and better coverage for temporary workers from General Motors Co as part of its tentative deal to end a month-long U.S. strike, but the deal would also allow the automaker to move forward with closing three plants, the union said on Thursday. The highlights of the agreement were released by the UAW after the union's national council, representing GM plants across the United States, reviewed the terms of the four-year deal. The strike began on Sept. 16, with UAW negotiators seeking higher pay for workers, greater job security, a bigger share of profit and protection of healthcare benefits.
- Reuters
UAW will keep GM strike going while members vote on new contract
DETROIT/WASHINGTON (Reuters) - The United Auto Workers union said on Thursday workers at General Motors Co will stay off the job while they vote on a proposed contract that delivers higher pay for full-time workers and better terms for temporary workers, but allows the automaker to close three U.S. plants. Union leaders are giving the 48,000 striking workers until Oct. 25 to vote on the contract terms, but have recommended ratification of the deal. The decision to keep the strike going for another week reflects the pressure on top UAW leaders amid a continuing federal corruption probe of the union.
- Yahoo Finance
GM, Tesla, Apple, Restaurant Brands and Meredith: Stocks to watch
GM, Tesla, Apple, Restaurant Brands and Meredith are the stocks the Yahoo Finance team will be watching for you today.
- Bloomberg
Factory Slump Is Flyover Country at Honeywell
(Bloomberg Opinion) -- Honeywell International Inc.’s aerospace halo is worth its weight in jet fuel.The $120 billion conglomerate reported its third-quarter results on Thursday, and while there was evidence of the slowdown gripping the rest of the manufacturing industry, there was also proof that everything that’s made Honeywell an industrial darling of Wall Street this past year still holds true. On the one hand, Honeywell cut its 2019 sales outlook. Revenue at its safety and productivity unit slumped 8% in the third quarter, excluding the impact of currency swings and M&A, as inventory piled up and projects got pushed out. Offsetting that bleak result was Honeywell’s aerospace division, which delivered robust 10% organic revenue growth. And Honeywell raised its 2019 earnings forecast.So in the end, what could have been an ugly earnings day for Honeywell ended up eliciting a polite clap. As trading began in New York, the stock was up about 1%.For Honeywell and other industrial companies, aerospace has been a rare bright spot at a time when many other sectors, particularly automotive, electronics and increasingly construction-related businesses, are slowing down. The decline appears to be accelerating: railroad Union Pacific Corp. on Thursday reported an 8% slump in carload volumes in the third quarter while construction-rental equipment company United Rentals Inc. trimmed its revenue guidance late Wednesday. Meanwhile, a report from the Federal Reserve on Thursday showed that U.S. factory output declined in September by the most in five months as a strike at General Motors Co., the trade war and generally sluggish demand weighed on production.The sustainability of the years-long aerospace boom has come into question as a wobbling Chinese economy and the prolonged trade war risk damping demand for travel. Global passenger traffic grew 3.8% in August, well off the pace of the past few years, according to the International Air Transport Association. But that’s still growth, at least for now. Parts makers like Honeywell are also seeing more demand for services on older aircraft while the Boeing Co. 737 Max remains grounded.In its earnings presentation, Honeywell said it expects further growth in commercial flight hours and the rollout of new jet programs to continue to boost sales at the aerospace division in 2020. Margins may get squeezed, because the business will tilt more heavily toward the less profitable work of installing new equipment versus maintaining older versions.The generally upbeat aerospace narrative contrasts with downbeat performances elsewhere at the company. The sales decline at the safety and productivity unit was the worst for the business since 2016, when the manufacturing sector was emerging from a mini-recession sparked by the plunge in oil prices. Margins in the safety and productivity business fell 320 basis points to 13.4%. Honeywell still recorded healthy growth in its chemicals and materials unit and building-technologies division, but the pace slackened from the second quarter. Honeywell now expects total company organic sales to grow at best 5% this year, down from an earlier projection of as much as 6%.Amid what it deemed an “uncertain macro environment,” Honeywell reiterated its ability to protect its earnings through a downturn by continuing to cut costs and using its ample balance sheet for M&A and share buybacks. CEO Darius Adamczyk has largely sat comfortably on the M&A sidelines the past few years, holding out for lower valuations that may now be coming. There had been some concern when he took over from former leader Dave Cote and talked passionately about accelerating Honeywell’s revenue growth that such an effort would come at the expense of the company’s almost religious commitment to margin improvements. That concern was ill-founded. Honeywell boosted its margin guidance for the full year in part because of the benefits of previously funded restructuring, operating improvements and the spinoffs of the less profitable Garrett Motion Inc. turbocharger and Resideo Technologies Inc. consumer-facing home products businesses last year.Honeywell is making a good case for why it’s a decent place to hide in the event of a manufacturing slowdown, or perhaps broader recession. But the fact that it’s making this argument increasingly loudly should be a warning for the rest of the industrial sector.To contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Yahoo Finance
Women in the C-suite add a collective $1.8T to the bottom line, S&P study says
Companies who appointed women into CEO and CFO positions are outperforming, a new study by S&P Global Market Intelligence shows.
- Bloomberg
U.S. Factory Output Falls Most in Five Months on GM Strike
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Production at U.S. factories fell in September by the most in five months, depressed by an autoworkers’ strike at General Motors Co., sluggish global demand and the trade war. Production at manufacturers declined 0.5% last month, weaker than the median forecast in a Bloomberg survey of economists, Federal Reserve data showed Thursday. Factory output excluding motor vehicles and parts declined 0.2% after a 0.7% gain.Total industrial production, which also includes output at mines and utilities, fell 0.4% in September after an upwardly revised 0.8% increase.Key InsightsThe figures highlight how multiple hardships are combining to slow work on factory floors. The effects of a United Auto Workers strike at GM, the largest U.S. labor action in a decade, extended beyond assembly plants to the supply chain. The work stoppage only added to the bad news facing manufacturers that are challenged by the tariff war with China, tepid worldwide demand and limited domestic investment.Factory production may rebound this month or next after GM and the UAW reached a tentative agreement to end the more than one-month strike that cost the automaker an estimated $2 billion. Third-quarter manufacturing output increased at a 1.1% annualized pace after slumping at a 3.2% rate in the previous three months.The data corroborate other reports showing a fragile manufacturing sector. The Federal Reserve Bank of New York’s factory gauge remained subdued in October and the Institute for Supply Management’s index dropped to the lowest level since 2016. A 4.2% decline in output of vehicles and parts was the largest since January, the Fed said. Production of primary metals, machinery and plastics also fell in September.Get MoreOf the three industrial production groups, mining fell for the second month in the last three, while output at utilities increased for a third month. Within mining, oil and gas well drilling slumped 5.5%, and plunged at a 27.1% annualized rate in the third quarter.Capacity utilization, measuring the amount of a plant that is in use, declined to 77.5% from 77.9%. Capacity utilization at manufacturers fell to a two-year low of 75.3%, reflecting the work stoppage at GM.The median estimate in a Bloomberg survey of economists called for a 0.3% decline in manufacturing output in September.The Fed’s monthly data are volatile and often get revised. Manufacturing, which makes up about three-fourths of total industrial production, accounts for about 11% of the U.S. economy.(Updates with graphic.)\--With assistance from Kristy Scheuble.To contact the reporter on this story: Katia Dmitrieva in Washington at edmitrieva1@bloomberg.netTo contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince GolleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters - UK Focus
WRAPUP 1-U.S. housing starts fall; mid-Atlantic factory activity slows
U.S. homebuilding tumbled from a more than a 12-year high in September, but single-family home construction rose for a fourth straight month, suggesting the housing market remains supported by lower mortgage rates even as the economy is slowing. Other data on Thursday showed a deceleration in factory activity in the mid-Atlantic region in October. A 15-month trade war between the United States and China has dented business sentiment, leading to a drop in capital expenditure and a downturn in manufacturing.
- Investing.com
Pound Slightly Higher on Brexit Deal; U.S. Dollar Falls
Investing.com - The U.S. dollar remained tepid on Thursday, while sterling tried to hold onto earlier gains after reports that the U.K. and European Union had reached a Brexit deal.
- Bloomberg
A Railroad's Earnings Win Isn't an All-Clear
(Bloomberg Opinion) -- CSX Corp.’s results were better than many feared they would be, but they came at the expense of several hundred jobs.The railroad on Wednesday said third-quarter revenue declined 5% as the the uncertainty wrought by the trade war and a slump in coal shipments weighed on cargo volumes. Even so, CSX’s earnings per share for the period beat analysts’ estimates and its operating ratio – a measure of profitability in which a lower number is better – fell to 56.8%, compared with 58.7% a year earlier and 57.4% in the second quarter. That reflected in part a $145 million decline in expenses from a drop in fuel prices and operating costs, as well as the reduced headcount.CSX has been aggressively trying to improve its efficiency via the sometimes controversial methodology of “precision scheduled railroading,” which is designed to reduce the amount of cars, manpower and capital needed to run a railroad. This cost-cutting push has become more important as the macroeconomic backdrop has weakened. Overall volume fell 5% in the third quarter at CSX, led by slumps in cargo-container and coal traffic. Shipments of metals, chemicals and cars also declined. The company reiterated its expectation for sales to decrease as much as 2% in 2019, a sign that the guidance cut it announced in July wasn’t the cautious approach management billed it as but an accurate assessment of a gloomier reality. Along those lines, United Rentals Inc. on Wednesday the high end of its revenue guidance for the year, with CEO Matthew Flannery noting that “lingering economic uncertainty could impact construction and industrial activity.”The ways in which industrial companies respond to the deepening slowdown in manufacturing sectors can be politically fraught, particularly when it comes to job cuts. CSX had 21,158 employees at the end of the third quarter, according to the company’s estimates. That’s down about 380 from June and down more than 5,000 from the count at the end of 2016, before activist investor Mantle Ridge LP recruited efficiency champion Hunter Harrison to push a more rigorous cost-management strategy at the company. Harrison died later that year and his protege, Jim Foote, took over as CEO.West Coast railroad Union Pacific Corp. is implementing its own version of this efficiency push and will report earnings on Thursday morning. It’s likely to reveal a similar dynamic of slumping sales being offset by cost and job cuts. Fox 4 Kansas City, citing labor union officials, reported on Wednesday that Union Pacific is laying off 200 people – with just two days notice – as it closes down the local Neff Yard. Union Pacific said some of the workers will be able to be reassigned to operations in other areas.At a time when striking General Motors Co. workers have shut down the company’s 34 U.S. plants for more than a month over demands for better job security and garnered support from leading Democratic candidates for president, it’s fair to wonder whether railroads and other industrial companies may face blowback of their own.To contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Bloomberg
GM’s Tentative Deal With UAW Paves Way for Key Strike Vote
(Bloomberg) -- General Motors Co. and the United Auto Workers reached a tentative agreement on a new contract, clearing the way for a union vote Thursday on whether to continue a more than month-long strike.The accord reached Wednesday may bring an end to the union’s longest national walkout against the carmaker in almost a half century. It includes $9 billion in investment in U.S. plants, 9,000 new or retained jobs and signing bonuses exceeding the $8,000 workers got four years ago, people familiar with the matter said. Workers will get 3% pay raises in some years of the contract and 4% lump-sum payments in the others.“The number one priority of the national negotiation team has been to secure a strong and fair contract that our members deserve,” UAW Vice President Terry Dittes said in a statement. He said the union’s bargaining committee recommends that the GM National Council -- comprised of presidents and chairmen from locals around the country -- vote in favor of putting the deal up for a ratification vote.GM confirmed a tentative agreement had been reached, but neither the company nor the union provided details on what’s included in the deal. GM shares rose as much as 2.6% to $37.22, the highest intraday in two weeks.The stakes were rising for both sides as the strike entered a fifth week, costing GM billions, forcing workers to live on $275 a week and denting the economy in Michigan and the Midwest. Analysts at Bank of America Merrill Lynch estimate the strike has cost GM about $2 billion of earnings, and its striking workers may have lost $2,000 of profit sharing and as much as $4,000 in take-home pay.The walkout also become a national political issue, coming up during Tuesday night’s Democratic presidential debate in Ohio, which has lost thousands of auto industry jobs.Speed UpIf the UAW decides to continue the strike until the deal is ratified, the union may be pressured to expedite the process, said Art Schwartz, a former GM labor negotiator.“If they keep them out, I’m sure they will speed ratification up,” said Schwartz, who’s now a consultant in Ann Arbor, Michigan. “Usually, it takes about two weeks, but it doesn’t have to, they can do it quicker and I think they would.”After exchanging blame last week, GM and the union made rapid progress over the weekend. Chief Executive Officer Mary Barra and President Mark Reuss showed up in person at the main bargaining table on Tuesday. And in an early sign a possible deal was in the works, UAW bosses summoned local presidents and chairmen to Detroit for a meeting Thursday.What Bloomberg Intelligence says:“GM will likely shrug off the near-term supply constraints and earnings reduction of a strike-ravaged 3Q. Depending on the conditions, the cost of the next contract over four years carries the greater risk of making the automaker uncompetitive if U.S. demand ebbs.”\-- Kevin Tynan, senior autos analystClick here to read the researchGM and union officials reached a key compromise on a path to full-time employment for temporary staffers after three consecutive years of work, people familiar with the situation said. The treatment of temps, some of whom have worked at GM for as long as four years, had been one of the most contentious issues standing the way of a deal.The automaker said last week that it was willing to increase wages and lump sum payments, preserve health-care benefits, remove a cap on how much profit sharing is paid out based on earnings and boost ratification bonuses.Read more: In GM Strike, Old Grievances Retooled for a New EraThe UAW’s national council will decide Thursday whether to recommend the agreement for a ratification vote and if the strike will continue while members cast ballots.“If they don’t feel confident in their ability to get it ratified, they may just say ‘we’re going keep them out on strike until it’s ratified, because we’re not sure,” said Arthur Wheaton, director of the Worker Institute at Cornell University. “It will be a great temperature test to see whether or not they feel confident in the vote.”Ratification ChallengeGetting the new four-year agreement approved by the rank-and-file could be a challenge. GM outraged union workers last year by threatening four U.S. plants with possible closure, though it’s offered to keep at least one of those factories open.UAW leaders also have credibility problems. President Gary Jones was implicated last month by federal prosecutors in an indictment of a former confidant who conspired to embezzle member dues and spend the money on stays at luxury villas, golf gear and cigars.Once the UAW’s GM membership ratifies the contract, the union will turn its attention to either Ford Motor Co. or Fiat Chrysler Automobiles NV. The UAW typically tries to use the first agreement as a pattern for the others. The union extended its contracts with Ford and Fiat Chrysler on Sept. 13 to focus on GM.(Updates with details in second paragraph.)To contact the reporters on this story: David Welch in Southfield at dwelch12@bloomberg.net;Keith Naughton in Southfield, Michigan at knaughton3@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Melinda GrenierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Market Realist
General Motors: Good News and Bad News
General Motors stock is trading higher today. Reportedly, the company has reached a tentative deal with United Auto Workers.
- Reuters
Timeline - GM reaches tentative labour deal with UAW union to end strike
UAW officials and striking workers on the picket lines had said their focus in the dispute with GM was on jobs, pay equity and fairness for workers who made concessions in 2009 to help GM through its government-led bankruptcy. GM announced the No. 1 U.S. automaker's biggest restructuring since its 2009 bankruptcy, putting five North American plants on notice for potential closure and saying it would cut nearly 15,000 jobs.
- Reuters
GM, UAW reach tentative deal to end month-long strike
General Motors Co and the United Auto Workers union have reached a tentative deal for a new four-year labor deal, moving the sides closer to ending the month-long strike that had drawn the attention of U.S. President Donald Trump and potential Democratic rivals in the 2020 presidential election. The deal is subject to approval by the union's national GM council during its meeting on Thursday and then must still be ratified by the wider membership, the UAW said in a statement. “The number one priority of the national negotiation team has been to secure a strong and fair contract that our members deserve,” UAW Vice President Terry Dittes, director of the union's GM department, said in a statement.
- Reuters
UAW, GM leaders have a deal to end strike, now workers will decide
General Motors Co and the United Auto Workers union reached a tentative agreement on Wednesday for a new four-year labor deal, moving closer to ending a costly month-long strike that shut down GM's most profitable factories in a test of wills over the future of U.S. auto industry jobs. Neither the UAW nor GM released details of the deal, which is subject to ratification by UAW members, a process that could last up to two weeks. A new contract is expected to include commitments by the automaker to invest billions in U.S. vehicle factories to build new generations of electric vehicles, as well as U.S. electric vehicle battery plants.
- Yahoo Finance
Abbott Labs, GM, MGM, Berkshire Hathaway, Intel: Stocks to Watch
Abbott Labs, GM, MGM, Berkshire Hathaway and Intel are the companies to watch.
- Zacks
China's Auto Sales Still in Free Fall: Any Recovery in Sight?
Waning consumer demand in the wake of tariff woes and economic slowdown is dragging down China's vehicle sales.
