UPDATE | GM posts $12.8B in 2017 earnings

Staff/Wire Reports

DETROIT — General Motors Co. today announced full-year 2017 adjusted income of $12.84 billion.

The results were on par with last year's strong performance.

The strength was driven by strong sales in North America, improvement in GM International led by strong equity income in China and a return to profitability in South America, sustained growth of GM Financial and an intense focus on costs, the company said.

About 50,000 GM factory workers will get $11,750 profit-sharing checks late this month, based on a full-year pretax North American profit of $11.9 billion.

Chief Financial Officer Chuck Stevens said GM still expects economic growth this year even with a possible 0.75-point increase in the prime interest rate. He says credit availability is still strong, interest rates are relatively low, and he expects wage growth and more disposable income from tax reform. “We are constructive that 2018 will be another strong year both globally and in the U.S.,” he said. “We are not overly concerned at this point around some of the discussion around inflation that we’ve seen. We think overall the macro environment is and will remain constructive.”

Shares of GM rose 1.2 percent to $40.01 in premarket trading Tuesday. They have fallen 5.7 percent so far this year.

GM employs 3,000 workers at the GM Lordstown Assembly Complex.