General Motors Company recently announced $6.3 billion earnings in the fourth quarter. This is five times more than $1.1 billion the automaker earned for the same period in 2014. As a reward, its GE Motors UAW workers will get profit sharing of up to $11,000 computed on the company's $11 billion pretax profit in North America for 2016.
This is by far, the highest profit sharing ever paid by an automaker in Detroit to its UAW workers. However, the amount of $11,000, according to General Motors Company, is the maximum and not the average. Workers who logged in 1,850 hours in 2015 are entitled to receive this maximum amount.
This maximum amount is higher than what UAW workers received last year, which was only $9,000. It is also the highest amount since the UAW and GE Motors agreed to share a part of the automaker's domestic profit.
But before a worker receives his profit sharing the company will withhold federal and state taxes. A total of 49,600 GM workers will enjoy their share of the profit. According to the automaker, payments will be made this month.
However, the company's stocks in Wall Street continue to plunge last week. Its fourth quarter revenues were helped by a one-time $3.2 billion accounting credit. They were five times over the $1.1 billion net earnings the carmaker reported in Q4 2014.
Considering a per-share basis, General Motors Company earned $1.39 billion for the fourth quarter, beating analysts' consensus projections of $1.21 per share.
In January, the Detroit carmaker increased its projections for 2016 income from $5.25 to $5.75 per share. It also raised its quarterly dividends from 36 cents to 37 cents and informed its investors that the stock repurchase program of the company will be expanded from $5 billion to $9 billion up to the end of 2017.
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