BEIJING, Jan. 12 (Xinhua) -- No.1 US automaker General Motors Co on Tuesday gave an upbeat profit outlook for 2017 that was significantly above Wall Street forecasts, countering analysts' concerns that the US car industry peaked in 2016 after several years of record or near-record sales, sending its shares up nearly 4 percent.
GM said it expects its earnings for 2016 at the high end of its previous forecast and that profits will rise 2017.
"We see from a [US] macroeconomic point of view pretty robust underpinnings for another good year, absent some external shock to the system," GM president Dan Ammann told reporters at a press conference.
Driving GM's results are solid US economic fundamentals and strong sales of profitable trucks and sport utility vehicles (SUVs).
The Detroit-based automaker said it expects 2017 earnings per share (EPS) in a range of $6 to $6.50. Analysts have, on average, predicted the company to post EPS this year of $5.76, according to Thomson Reuters.
GM said it expects full-year 2016 EPS at the high end of its previously announced range of $5.50 to $6. Analysts currently expect 2016 EPS of $6.01, according to Thomson Reuters.
In September, rival US automaker Ford Motor Co lowered its pretax profit forecast for 2016, blaming a charge related to a vehicle recall. Ford has been trading at 6.29 times earnings, above GM, which has been trading at 4.12 times earnings.
GM shares were up 0.13 percent at $37.4 in Wednesday morning trading, after earlier hitting their highest level in almost two years.
Ford shares rose 0.83 percent on Wednesday morning (the US time). (Global Times)
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