GM factory workers to get $11K profit sharing checks

GM made $9.9 billion, or $6.62 per share, the highest since leaving bankruptcy in 2009

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DETROIT (AP) – About 50,000 General Motors factory workers will get $11,750 profit-sharing checks later this month.

GM is one of Youngstown’s biggest employers with 4,500 workers, so experts say this is big for the whole city.

PNC Economist Kurt Rankin said the over $11,000 would go far for many Youngstown families. The city’s median family income is just under $60,000.

Another interesting point is that savings rates are down. That means, chances are, these workers will spend their paychecks.

“This $11,000 or whatever fraction of that it might be, depending on how GM distributes it across the pay scales, should support consumer spending and, in turn, support jobs locally where that money’s being spent,” Rankin said.

Rankin said if any company has the ability to affect consumer spending in the Mahoning Valley, it’s GM.

A $7.3 billion accounting charge pushed GM into a $3.9 billion net loss for 2017, but without the expense, the company posted record per-share earnings.

Excluding one-time items, GM made $9.9 billion, or $6.62 per share — the highest since leaving bankruptcy in 2009. The earnings beat Wall Street estimates. Analysts polled by FactSet expected $6.33 per share. Full-year revenue was $145.6 billion, which also beat estimates.

GM says the change in the U.S. tax code forced it to write down accumulated losses that it uses to avoid corporate income taxes. The assets went from $33.6 billion to $24 billion. Since the rate fell from 35 percent to 21 percent, the losses are worth less.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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