General Motors Company ( GM – Analyst Report ) plans to open a new information technology (“IT”) innovation center in the Phoenix suburb of Chandler in order to support all its information technology needs, including Web technologies, dealer and factory systems, and new vehicle technology.
The Phoenix center will be the fourth IT center for GM aimed at bringing its IT work in-house. It is expected to be operational by the first quarter of 2014.
GM intends to hire 1,000 high-tech employees for the Phoenix center beginning in April. It has already hired more than 1,000 new employees at the three other locations: Austin, TX, Roswell, GA and Warren, MI.
The automaker expects to fill its four IT centers with 10,000 staffs in the next three to five years. It has already hired 3,000 people from Hewlett-Packard Company ( HPQ – Analyst Report ) and shifted 1,500 of its current IT workforce to these centers.
GM plans to hire another 4,000 people in the near future for these centers. The company plans to recruit software developers, database administrators and system analysts.
GM, a Zacks Rank #3 (Hold) stock, posted a rise in profits to $0.8 billion or 48 cents per share in the fourth quarter of 2012, missing the Zacks Consensus Estimate by a penny, compared with $0.7 billion or 39 cents in the same quarter of 2011. The results excluded net gain from special items of $0.1 billion or 6 cents in the 2012-quarter and net loss from special items of $0.2 billion, or 11 cents in the 2011 quarter.
Revenues in the quarter scaled up 3.4% to $39.3 billion, which was higher than the Zacks Consensus Estimate of $38.6 billion. Unit sales escalated 4.2% to 2.3 million vehicles. The automaker occupied a market share of 11.5% during the quarter, down from 11.6% in the year-ago quarter.
GM expects to boost its top-line in 2013 with the help of new vehicle launches. At the same time, the company believes cost control measures will boost its bottom line growth. It expects 2013 capital expenditures to be at the 2012-level.
Few stocks that are performing well in the industry where GM operates include Oshkosh Corporation ( OSK – Snapshot Report ) and STRATTEC Security Corporation ( STRT – Snapshot Report ) . They carry a Zacks Rank #1 (Strong Buy).