GM Reports Net Income of $3.2 Billion
- Net income of $1.77 per share including a net gain from special items of $0.82 per share
- EBIT of $3.5 billion and EBIT-adjusted of $2.0 billion
- GM Europe achieves breakeven results on an EBIT-adjusted basis
DETROIT, May 5, 2011 /PRNewswire/ -- General Motors Company (NYSE: GM) today announced first quarter net income attributable to common stockholders of $3.2 billion, or $1.77 per fully-diluted share, marking the company's fifth consecutive profitable quarter. Revenue increased $4.7 billion to $36.2 billion, compared with the first quarter of 2010.
"We are on plan," said Dan Akerson, chairman and CEO. "GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth."
Net income attributable to common stockholders includes gains of $1.6 billion and $0.3 billion respectively related to the sales of the company's ownership interest in Delphi Automotive LLP and Ally Financial Inc. preferred stock. It also includes a $0.4 billion goodwill impairment charge at GM Europe (GME) resulting from a change in accounting standards and charges totaling $0.1 billion at GM International Operations (GMIO) related to revised tax regulations affecting the company's India joint venture. Combined, these special items increased net income attributable to common stockholders by $1.5 billion or $0.82 per fully-diluted share.
Earnings before interest and tax (EBIT) were $3.5 billion. EBIT adjusted to exclude special items was $2.0 billion compared with $1.7 billion in the first quarter of 2010.
GM Results Overview (in billions except for per share amounts)
Q1 2010 Q1 2011
Revenue $31.5 $36.2
Net income attributable to common
stockholders $0.9 $3.2
Earnings per share (EPS) diluted $0.55 $1.77
EBIT $1.8 $3.5
Less special items $0.1 $1.5
EBIT - adjusted $1.7 $2.0
Impact of special items on EPS diluted $0.08 $0.82
Automotive net cash flow from operating
activities $1.9 $(0.6)*
Automotive free cash flow $1.0 $(1.9)*
* Includes $2.5 billion negative impact related to wholesale advance
financing agreement termination
GM North America (GMNA) reported EBIT of $2.9 billion compared with $1.2 billion in the first quarter of 2010. On an EBIT-adjusted basis, GMNA increased its earnings by $0.1 billion to $1.3 billion compared with the first quarter of 2010. The company expects GMNA's quarterly EBIT-adjusted results to improve on average for the remainder of the year compared with the first quarter as better pricing and improved fixed cost should more than offset commodity cost increases and unfavorable mix.
GME reported EBIT of $(0.4) billion. GME's results improved by $0.6 billion on an EBIT-adjusted basis compared with the first quarter of 2010 and it achieved a significant milestone by delivering breakeven results on that basis. Based on current plans, GME is targeting to achieve breakeven results on an EBIT-adjusted basis before restructuring for the entire year.
GMIO reported EBIT of $0.5 billion compared with $0.9 billion in the first quarter of 2010. On an EBIT-adjusted basis, GMIO earned $0.6 billion in the first quarter, a decline of $0.3 billion compared with the first quarter of 2010.
GM South America (GMSA) reported EBIT of $0.1 billion, down $0.2 billion from the first quarter of 2010. There were no adjustments in either period.
GM expects that full-year 2011 EBIT-adjusted results will show solid improvement over 2010. GM continues to expect no material impact on full-year results from the Japan crisis.
For the quarter, automotive cash flow from operating activities was $(0.6) billion and automotive free cash flow was $(1.9) billion. Both figures include the $2.5 billion cash impact of GM's decision, announced in October 2010, to end a wholesale advance agreement with Ally Financial.
GM ended the quarter with very strong total liquidity of $36.5 billion. Cash and marketable securities were $30.6 billion compared with $27.6 billion at the end of the fourth quarter of 2010.
"GM has great potential to deliver profitable growth around the world as the recovery continues," said Dan Ammann, senior vice president and CFO. "While we're encouraged, we keenly recognize we have more opportunities to leverage our scale, improve spending and investment efficiencies, and optimize our strong balance sheet."
About General Motors - General Motors (NYSE:GM, TSX: GMM), one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 202,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on the new General Motors can be found at http://www.gm.com.
Forward-Looking Statements
In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planned significant investment in new technology; the ability of our suppliers to timely deliver parts, components and systems; our ability to realize successful vehicle applications of new technology; and our ability to continue to attract new customers, particularly for our new products. GM's most recent annual report on Form 10-K and quarterly report on Form 10-Q provides information about these and other factors, which we may revise or supplement in future reports to the SEC.
Exhibit 1
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The accompanying tables and charts for securities analysts include earnings before interest and taxes (EBIT), EBIT adjusted and Automotive free cash flow which are not prepared in accordance with Accounting Principles Generally Accepted in the United States of America (U.S. GAAP) and have not been audited or reviewed by GM's independent auditors. EBIT, EBIT adjusted and Automotive free cash flow are considered non-GAAP financial measures.
Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM's operating results because they exclude amounts that management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. Management believes these measures allow it to readily view operating trends, perform analytical comparisons and benchmark performance among geographic regions. Accordingly, GM believes these non-GAAP financial measures are useful in allowing for greater transparency of GM's core operations and they are therefore used by management in its financial and operational decision-making.
While management believes that these non-GAAP financial measures provide useful information, they are not operating measures under U.S. GAAP and there are limitations associated with their use. GM's calculation of these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences between companies in their method of calculation. As a result, the use of these non-GAAP financial measures has limitations and should not be considered in isolation from, or as a substitute for, other measures such as Net income or Net income attributable to common stockholders. Due to these limitations, these non-GAAP financial measures are used as a supplement to U.S. GAAP measures.
The following table summarizes the reconciliation of EBIT to its most comparable U.S. GAAP measure (dollars in millions):
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
-------------- --------------
Operating segments
GMNA(a) $2,898 $1,218
GME(a)(b) (390) (477)
GMIO(a)(b) 480 908
GMSA(a)(b) 90 265
GM Financial(c) 130 -
--- ---
Total operating segments 3,208 1,914
Corporate and eliminations 317 (90)
--- ---
EBIT(c) 3,525 1,824
Interest income 127 90
Automotive interest expense 149 337
Income tax expense 137 509
--- ---
Net income attributable to stockholders 3,366 1,068
Less: Cumulative dividends on preferred
stock 215 203
--- ---
Net income attributable to common
stockholders $3,151 $865
====== ====
(a) Interest and income taxes are recorded centrally in Corporate;
therefore, there are no reconciling items for GM's automotive
operating segments between EBIT and Net income attributable to
stockholders.
(b) In the year ended December 31, 2010 GM changed its managerial and
financial reporting structure so that certain entities
geographically located within Russia and Uzbekistan were
transferred from GM's GME segment to GM's GMIO segment and certain
entities geographically located in Brazil, Argentina, Colombia,
Ecuador, Venezuela, Bolivia, Chile, Paraguay, Peru and Uruguay
were transferred from GM's GMIO segment to GM's newly created GMSA
segment. GM has retrospectively revised the segment presentation
for all periods presented.
(c) GM Financial amounts represent income before income taxes.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following table summarizes the reconciliation of EBIT adjusted to
EBIT (dollars in millions):
Three Months Three Months
Ended Ended
March 31, 2011(a) March 31, 2010
----------------- --------------
EBIT adjusted $2,042 $1,701
Special items 1,483 123
----- ---
EBIT $3,525 $1,824
====== ======
(a) GM Financial amounts included in EBIT and EBIT adjusted represent
income before income taxes.
Special Items
In the three months ended March 31, 2011 special items included:
-- Gain of $1.6 billion in GMNA related to the sale of GM's Class A
Membership Interests in Delphi Automotive LLP;
-- Gain of $339 million in Corporate related to the sale of 100% of the
Ally Financial Preferred Stock;
-- Impairment charge of $395 million in GME related to goodwill; and
-- Charge of $106 million in GMIO related to GM's India joint venture.
In the three months ended March 31, 2010 special items included a gain of $123 million in GME related to the sale of Saab Automobile AB to Spyker Cars NV.
The following table summarizes the reconciliation of Automotive free cash flow to Automotive Net cash provided by (used in) operating activities (dollars in millions):
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
-------------- --------------
Automotive
Free cash flow $(1,918) $1,010
Capital expenditures 1,322 840
----- ---
Net cash provided by (used in)
operating activities $(596) $1,850
===== ======
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following tables summarize selected data by segment
(dollars in millions):
GMNA GME GMIO GMSA Corporate
---- --- ---- ---- ---------
Three Months Ended
March 31, 2011
Total net sales
and revenue $22,110 $6,870 $5,427 $3,896 $16
Depreciation,
amortization
and impairment
of long-lived
assets and
finite-lived
intangible
assets $977 $340 $116 $116 $13
Equity income,
net of tax and
gain on
disposal of
investments(a) $1,729 $- $415 $- $-
Eliminations Total GM Eliminations Total
------------ Automotive Financial ------------ -----
---------- ---------
Three Months
Ended
March 31, 2011
Total net
sales and
revenue $(2,420) $35,899 $295 $- $36,194
Depreciation,
amortization
and
impairment
of long-
lived
assets and
finite-
lived
intangible
assets $- $1,562 $14 $- $1,576
Equity
income, net
of tax and
gain on
disposal of
investments(a) $- $2,144 $- $- $2,144
(a) Includes a gain of $1.6 billion recorded on the sale of GM's Class A
Membership Interests in Delphi Automotive LLP.
GMNA GME GMIO GMSA
---- --- ---- ----
Three Months Ended
March 31, 2010
Total net sales and
revenue $19,286 $5,461 $4,985 $3,324
Depreciation,
amortization and
impairment of long-
lived assets and
finite-lived
intangible assets $1,174 $384 $65 $129
Equity income, net
of tax and gain on
disposal of
investments $34 $7 $362 $-
Corporate Eliminations Total Total
--------- ------------ Automotive -----
----------
Three Months Ended
March 31, 2010
Total net sales and
revenue $45 $(1,625) $31,476 $31,476
Depreciation,
amortization and
impairment of long-
lived assets and
finite-lived
intangible assets $51 $- $1,803 $1,803
Equity income, net
of tax and gain on
disposal of
investments $- $- $403 $403
The following tables summarize worldwide employment and payroll:
March 31, 2011 December 31, 2010
-------------- -----------------
Worldwide Employment (thousands)
GMNA 97 96
GME 40 40
GMIO 33 32
GMSA 32 31
GM Financial 3 3
--- ---
Total Worldwide 205 202
=== ===
U.S. - Salaried 28 28
U.S. - Hourly 49 49
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
-------------- --------------
Worldwide Payroll (billions) $3.3 $3.0
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
-------------- --------------
Production Volume (units in thousands)(a)
GMNA - Cars 284 244
GMNA - Trucks 502 424
--- ---
Total GMNA 786 668
GME 344 305
GMIO - Consolidated Entities 257 248
GMIO - Joint Ventures(b) 709 654
--- ---
Total GMIO 966 902
GMSA 231 210
--- ---
Total Worldwide 2,327 2,085
===== =====
(a) Production volume includes vehicles produced by certain joint
ventures.
(b) The joint venture agreements with SGMW (44%) in the three months
ended March 31, 2011 and (34%) in the three months ended March 31,
2010 and FAW-GM (50%) allows for significant rights as a member as
well as the contractual right to report SGMW and FAW-GM joint venture
production in China.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010(a)(b)
-------------- --------------------
Vehicle Sales (units in
thousands)(c)(d)(e)
United States
Chevrolet - Cars 181 156
Chevrolet - Trucks 235 182
Cadillac 41 29
Buick 45 32
GMC 91 69
Other 0 8
--- ---
Total United States 593 477
Canada, Mexico and Other 92 86
--- ---
Total GMNA 684 564
--- ---
GME
Opel/Vauxhall 320 295
Chevrolet 112 105
Other 1 4
--- ---
Total GME 433 404
--- ---
GMIO
Chevrolet 256 220
Wuling 337 334
Buick 166 122
GM Daewoo 16 28
Holden 32 36
FAW-GM 17 28
GMC 7 8
Cadillac 8 4
Other 17 11
--- ---
Total GMIO(f)(g) 855 790
--- ---
GMSA
Chevrolet 247 237
Other 3 4
--- ---
Total GMSA 250 241
--- ---
Total Worldwide 2,221 1,999
===== =====
(a) Includes HUMMER, Saturn and Pontiac vehicle sales data.
(b) Includes GM Saab Automobile AB (Saab) vehicle sales data through
February 2010.
(c) Vehicle sales data may include rounding differences.
(d) Certain fleet sales that are accounted for as operating leases are
included in vehicle sales at the time of delivery to the daily
rental car companies.
(e) GMNA vehicle sales primarily represent sales to the ultimate
customer. GME, GMIO and GMSA vehicle sales primarily represent
estimated sales to the ultimate customer. In countries where end
customer data is not readily available other data sources, such as
wholesale volumes, are used to estimate vehicle sales.
(f) Includes the following joint venture vehicle sales:
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
-------------- --------------
Joint venture sales in China
SGM 310 235
SGMW and FAW-GM 376 388
Joint venture sales in India
HKJV 29 22
(g) The joint venture agreements with SGMW (44%) in the three months
ended March 31, 2011 and (34%) in the three months ended March 31,
2010 and FAW-GM (50%) allow for significant rights as a member as
well as the contractual right to report SGMW and FAW-GM joint
venture vehicle sales in China as part of GM's global market share.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2011 March 31,2010(a)(b)
-------------- -------------------
Market Share(c)(d)(e)
United States - Cars 15.4% 14.8%
United States - Trucks 22.4% 22.0%
Total United States 19.0% 18.4%
Total GMNA 18.3% 17.8%
Total GME 8.6% 8.5%
Total GMIO(f)(g) 9.2% 8.8%
Total GMSA 18.8% 20.7%
Total Worldwide 11.5% 11.1%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 28.6% 40.6%
% Fleet Sales - Trucks 20.5% 24.5%
Total Vehicles 23.6% 30.9%
GMNA Capacity Utilization(h) 99.1% 85.1%
(a) Includes HUMMER, Saturn and Pontiac vehicle sales data.
(b) Includes GM Saab vehicle sales data through February 2010.
(c) Market share information is based on vehicle sales volume.
(d) Certain fleet sales that are accounted for as operating
leases are included in vehicle sales at the time of delivery
to the daily rental car companies.
(e) GMNA vehicle sales primarily represent sales to the ultimate
customer. GME, GMIO and GMSA vehicle sales primarily
represent estimated sales to the ultimate customer. In
countries where end customer data is not readily available
other data sources, such as wholesale volumes, are used to
estimate vehicle sales.
(f) Includes the following joint venture vehicle sales: (units in
thousands)
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
-------------- --------------
Joint venture sales in China
SGM 310 235
SGMW and FAW-GM 376 388
Joint venture sales in India
HKJV 29 22
(g) The joint venture agreements with SGMW (44%) in the three months
ended March 31, 2011 and (34%) in the three months ended March 31,
2010 and FAW-GM (50%) allow for significant rights as a member as
well as the contractual right to report SGMW and FAW-GM joint
venture vehicle sales in China as part of GM's global market share.
(h) Two shift rated, annualized.
General Motors Company and Subsidiaries
Condensed Consolidated Income Statements
(In millions, except per share amounts)
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
-------------- --------------
Net sales and revenue
Automotive sales $35,879 $31,422
GM Financial revenue 295 -
Other automotive revenue 20 54
--- ---
Total net sales and revenue 36,194 31,476
------ ------
Costs and expenses
Automotive cost of sales 31,685 27,553
GM Financial operating and other
expenses 165 -
Automotive selling, general and
administrative expense 2,994 2,684
Other automotive expenses, net 6 46
--- ---
Total costs and expenses 34,850 30,283
Goodwill impairment charges 395 -
--- ---
Operating income 949 1,193
Automotive interest expense 149 337
Interest income and other non-
operating income, net 604 447
Loss on extinguishment of debt - (1)
--- ---
Income before income taxes and
equity income 1,404 1,302
Income tax expense 137 509
Equity income, net of tax and gain
on disposal of investments 2,144 403
----- ---
Net income 3,411 1,196
Net income attributable to
noncontrolling interests (45) (128)
--- ----
Net income attributable to
stockholders 3,366 1,068
Less: Cumulative dividends on
preferred stock 215 203
--- ---
Net income attributable to common
stockholders $3,151 $865
====== ====
Earnings per share
Basic and Diluted
Net income attributable to common
stockholders - basic $3,151 $865
Addition of preferred dividends to
holders of Series B Preferred Stock 59 -
--- ---
Net income attributable to common
stockholders - diluted $3,210 $865
====== ====
Basic and Diluted
Weighted-average common shares
outstanding - basic 1,504 1,500
Dilutive effect of warrants 162 67
Dilutive effect of conversion of
Series B Preferred Stock 148 -
Dilutive effect of restricted stock
units 3 -
--- ---
Weighted-average common shares
outstanding - diluted 1,817 1,567
===== =====
Basic earnings per share $2.09 $0.58
Diluted earnings per share $1.77 $0.55
General Motors Company and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions, except share amounts)
(Unaudited)
December 31,
ASSETS March 31, 2011 2010
-------------- -------------
Automotive Current Assets
Cash and cash equivalents $20,975 $21,061
Marketable securities 8,618 5,555
----- -----
Total cash, cash equivalents and
marketable securities 29,593 26,616
Accounts and notes receivable (net of
allowance of $336 and $252) 12,990 8,699
Inventories 13,991 12,125
Equipment on operating leases, net 3,099 2,568
Other current assets and deferred
income taxes 3,276 3,045
----- -----
Total current assets 62,949 53,053
Automotive Non-current Assets
Equity in net assets of
nonconsolidated affiliates 6,937 8,529
Property, net 19,944 19,235
Goodwill 28,752 30,513
Intangible assets, net 11,488 11,882
Other assets and deferred income
taxes 4,249 4,754
----- -----
Total non-current assets 71,370 74,913
------ ------
Total Automotive Assets 134,319 127,966
GM Financial Assets
Finance receivables, net (including
finance receivables transferred to
special purpose entities of $8,603
and $7,156) 8,276 8,197
Restricted cash 1,201 1,090
Goodwill 1,265 1,265
Other assets (including leased assets
transferred to special purpose
entities of $188 at March 31, 2011) 785 380
--- ---
Total GM Financial Assets 11,527 10,932
------ ------
Total Assets $145,846 $138,898
======== ========
LIABILITIES AND EQUITY
Automotive Current Liabilities
Accounts payable (principally trade) $24,739 $21,497
Short-term debt and current portion
of long-term debt (including debt
at GM Korea of $117 and $70) 1,743 1,616
Accrued liabilities (including
derivative liabilities at GM Korea
of $49 and $111) 25,200 24,044
------ ------
Total current liabilities 51,682 47,157
Automotive Non-current Liabilities
Long-term debt (including debt at GM
Korea of $8 and $835) 3,268 3,014
Postretirement benefits other than
pensions 9,396 9,294
Pensions 21,660 21,894
Other liabilities and deferred income
taxes 12,851 13,021
------ ------
Total non-current liabilities 47,175 47,223
------ ------
Total Automotive Liabilities 98,857 94,380
GM Financial Liabilities
Securitization notes payable 6,061 6,128
Credit facilities 1,412 832
Other liabilities 430 399
--- ---
Total GM Financial Liabilities 7,903 7,359
----- -----
Total Liabilities 106,760 101,739
Commitments and contingencies
Equity
Preferred stock, $0.01 par value,
2,000,000,000 shares authorized:
Series A (276,101,695 shares issued
and outstanding (each with a $25.00
liquidation preference) at March 31,
2011 and December 31, 2010) 5,536 5,536
Series B (100,000,000 shares issued
and outstanding (each with a $50.00
liquidation preference) at March 31,
2011 and December 31, 2010) 4,855 4,855
Common stock, $0.01 par value
(5,000,000,000 shares authorized,
1,560,755,989 and 1,500,149,928
shares issued and outstanding at
March 31, 2011 and 1,500,136,998
shares issued and outstanding at
December 31, 2010) 15 15
Capital surplus (principally
additional paid-in capital) 24,347 24,257
Retained earnings 1,951 266
Accumulated other comprehensive
income 1,494 1,251
----- -----
Total stockholders' equity 38,198 36,180
Noncontrolling interests 888 979
--- ---
Total Equity 39,086 37,159
------ ------
Total Liabilities and Equity $145,846 $138,898
======== ========
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