General Motors raises FY16 EPS guidance; FY15 on track; raises quarterly dividend 6% to $0.38; adds $4 bln to buyback
- Co raises FY16 EPS to $5.25-5.75 vs $5.32 Capital IQ Consensus; sees improved EBIT, margin, adj. auto FCF. The company's 2016 outlook is based on a strong product launch cadence, growth in adjacent businesses, continued emphasis on driving core efficiencies across the enterprise, and expected modest global industry growth.
- On-track to deliver double-digit growth in EBIT-adjusted and EPS-adjusted in calendar year 2015. Achieved its targeted 10-percent EBIT-adjusted margin in North America -- one year ahead of plan. Since announcing the initial share repurchase program in March 2015, the company repurchased 70 percent of the authorized program through the end of 2015, or $3.5 billion.
- Co raises quarterly dividend 6% to $0.38/share.
- Co increases buyback $4bln to $9 bln.
- Co said continued execution of its plan should keep GM on track to achieve 9- to 10-percent EBIT-adjusted margin by early next decade.
- GM also outlined several actions designed to improve the company's capital efficiency, resulting in a significant reduction in longer-term capital expenditures. GM continues to expect capital expenditures of 5- to 5.5-percent of revenues in the near-term.