GM Blames FX Losses for Revenue Drop

General Motors Co (GM.N) said on Tuesday that fourth-quarter net income fell partly because of $500 million in foreign exchange losses, while the automaker forecast 2017 profit per share would be flat to slightly up from 2016.

GM said fourth-quarter net income fell to $1.8 billion, or $1.19 per share, from $6.3 billion, or $3.92 a share, a year earlier.

Excluding one-time items, GM earned $2.4 billion, or $1.28 a share, in the latest quarter, down 14 percent from a year earlier. The adjusted result beat analysts’ expectations of $1.17 per share.

GM forecast adjusted earnings per share for all of 2017 at $6.00 to $6.50 a share, compared with $6.12 for all of 2016.

Shares were up 1.5 percent at $37.40 in premarket trading.

Most of the currency impact was caused by the decline in the value of the British pound after the United Kingdom’s vote to leave the European Union, GM said.

GM Chief Financial Officer Chuck Stevens said the company does not expect to break even in Europe this year, but will push to “get to that point in 2018.”

via Reuters

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