This is up from its 2016 calendar-year outlook of $5.50-$6.00. In 2017, the company also expects to maintain or improve EBIT-adjusted and EBIT-adjusted margin on higher revenues, compared to 2016, and generate about $6.0 billion of automotive-adjusted free cash flow.
Based on this strong outlook, the GM board approved an additional $5 billion in common stock repurchases under its existing share repurchase program, which was announced March 9, 2015.
The new authorization, which has no expiration date, brings the total under the program to $14 billion.
Share buybacks for the program’s initial authorization of $5 billion were completed in the third quarter of 2016, one quarter earlier than planned. In the fourth quarter of 2016, the company also completed $1 billion of the next $4 billion authorization declared in January 2016.
The company expects to meet its prior commitment to repurchase $9 billion of common stock by the end of 2017.
GM also announced a $1 billion increase to its cost efficiency target, raising it to $6.5 billion through 2018, of which about $4.0 billion has already been achieved through 2016.
The increased estimate is based on expected additional savings in material, logistics, manufacturing and general administrative costs. ■
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