GM Reports First Quarter 2010 Results
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GM achieves net income of $0.9 billion and EPS of $1.66
DETROIT, May 17, 2010 -- General Motors Company today announced its first quarter 2010 results, marked by revenue of $31.5 billion and operating income of $1.2 billion. Net income attributable to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66.
GM's first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand.
GM North America had EBIT in the first quarter 2010 of $1.2 billion, up from a loss of $3.4 billion in the fourth quarter 2009. GM Europe had a loss before interest and taxes of $0.5 billion; an improvement of $0.3 billion from the fourth quarter. GM International Operations posted EBIT of $1.2 billion, up $0.5 billion from the fourth quarter.
Cash flow from operating activities was $1.7 billion and after adjusting for capital expenditures of $0.7 billion, free cash flow was $1.0 billion. GM ended the first quarter with $35.7 billion in cash and marketable securities, including funds in escrow.
"We're pleased with our first quarter performance, in particular achieving profitability," said Chris Liddell, vice chairman and chief financial officer. "In North America we are adding production to keep up with strong demand for new products in our four brands. We're also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet. These are all important steps as we lay the foundation for a successful GM."
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 (loss) before interest and taxes (EBIT), adjusted EBIT and 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, adjusted EBIT and 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, benchmark performance among geographic regions and assess whether GM's plan to return to profitability is on target. 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 the 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 (loss) or Net income (loss) 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):
Successor
---------
Three Three July 10,
Months Months 2009
Ended Ended Through
March December
31, 31, September
2010 2009 30, 2009
------ --------- ----------
Operating
segments
GMNA(a) $1,218 $(3,443) $(1,377)
GMIO(a) 1,194 738 460
GME(a) (506) (814) 9
---- ---- ---
Total operating
segments 1,906 (3,519) (908)
Corporate and
eliminations (82) (527) 167
--- ---- ---
EBIT 1,824 (4,046) (741)
Interest income 90 75 109
Interest expense 337 329 365
Income tax
expense
(benefit) 509 (861) (139)
--- ---- ----
Net income (loss)
attributable to
stockholders $1,068 $(3,439) $(858)
====== ======= =====
__________
Interest and income taxes are recorded centrally in Corporate;
therefore, there are no reconciling items for GM's operating segments
(a) between EBIT and Net income (loss) attributable to stockholders.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following tables summarize the reconciliation of adjusted EBIT to EBIT and free cash flow to Net cash provided by (used in) operating activities (dollars in millions):
Successor
Three Months Three Months July 10, 2009
Ended Ended Through
March 31, December 31, September 30,
2010 2009 2009
---------- ------------- --------------
Adjusted EBIT $1,701 $(954) $(631)
Adjustments 123 (3,092) (110)
--- ------ ----
EBIT $1,824 $(4,046) $(741)
====== ======= =====
Free Cash Flow $991 $(2,919) $1,976
Capital expenditures 755 1,033 881
--- ----- ---
Net cash provided by (used
in) operating activities $1,746 $(1,886) $2,857
====== ======= ======
In the three months ended March 31, 2010 Adjustments included the following:
Gain of $123 million as a result of the sale of Saab to Spyker Cars o NV.
In the three months ended December 31, 2009 Adjustments included the following:
Settlement loss of $2.6 billion related to the termination of GM's UAW
hourly retiree medical plan and Mitigation Plan, under which GM
agreed that an independent VEBA would be formed to pay certain
o healthcare costs of UAW hourly retirees and their beneficiaries;
Impairment charge of $270 million related to GM's investment in GMAC
o common stock;
Charges of $150 million related to the settlement of existing Delphi
obligations upon consummation of the Delphi Master Disposition
Agreement and GM's agreement to fund the wind-down costs of certain
o Delphi facilities; and
Loss on extinguishment of debt of $101 million related to the
repayment of secured long-term debt of $400 million (in connection
with the purchase of the remaining noncontrolling interest in CAMI
o Automotive, Inc.).
In the period July 10, 2009 through September 30, 2009 Adjustments included the following:
o Charges of $110 million to record reserves against advances to Delphi.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor Predecessor
--------- -----------
Three Three
Months Months
Ended Ended
March 31, March 31,
2010 2009
---------- ----------
Worldwide Production Volume (units in
thousands)(a)
GMNA - Cars 244 116
GMNA - Trucks 424 255
--- ---
Total GMNA 668 371
GME 357 267
GMIO (b)(c) 1,060 692
----- ---
Total Worldwide 2,085 1,330
===== =====
__________
Production volume represents the number of vehicles manufactured by
GM's and Old GM's assembly facilities and also includes vehicles
(a) produced by certain joint ventures.
Includes Shanghai General Motors Co., Ltd. (SGM), SAIC-GM Wuling
Automobile Co., Ltd. (SGMW), FAW-GM Light Duty Commercial Vehicle
Co., Ltd. (FAW-GM) and SAIC GM Investment Ltd. (HKJV) joint venture
(b) production.
Ownership of 34% in SGMW and 50% in FAW-GM, under the joint venture
agreements, allows for significant rights as a member as well as the
contractual right to report SGMW and FAW-GM production volume in
China. These entities are not consolidated for financial reporting
purposes. Income and losses related to these entities are recorded in
(c) Equity income, net of tax.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor Predecessor
--------- -----------
Three Three
Months Months
Ended Ended
March 31, March 31,
2010 2009
---------- ----------
Vehicle Unit Deliveries (units in
thousands)(a)(b)(c)
United States
Chevrolet - Cars 156 93
Chevrolet - Trucks 182 154
Cadillac 29 24
Buick 32 21
GMC 69 54
Other 8 67
--- ---
Total United States 477 413
Canada, Mexico and Other 86 88
--- ---
Total GMNA(d) 563 501
--- ---
GME
Opel/Vauxhall 295 297
Chevrolet 107 100
Other 3 11
--- ---
Total GME(e) 405 407
--- ---
GMIO
Chevrolet 455 324
Buick 122 82
GM Daewoo 28 19
Holden 36 29
Wuling 334 231
FAW-GM 27 -
Cadillac 4 2
Other 23 22
--- ---
Total GMIO(e)(f)(g) 1,030 709
----- ---
Total Worldwide 1,998 1,617
===== =====
__________
(a) Includes HUMMER, Saturn and Pontiac vehicle sales data.
(b) Includes Saab vehicle sales data through February 2010.
(c) Vehicle sales data may include rounding differences.
(d) Vehicle sales represent sales to the ultimate customer.
Vehicle sales primarily represent estimated sales to the
(e) ultimate customer.
(f) Includes SGM, SGMW, FAW-GM and HKJV joint venture sales.
Ownership of 34% in SGMW and 50% in FAW-GM under the joint
venture agreements allows for significant rights as a member
as well as contractual rights to report SGMW and FAW-GM
joint venture vehicle sales in China as a part of global
market share. These entities are not consolidated for
financial reporting purposes. Income and losses related to
(g) these entities are recorded in Equity income, net of tax.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor Predecessor
--------- -----------
Three Three
Months Months
Ended Ended
March 31, March 31,
2010 2009
---------- ----------
Market Share(a)
United States - Cars 14.8% 15.3%
United States - Trucks 22.0% 21.3%
Total United States 18.4% 18.4%
Total GMNA(b) 17.8% 18.0%
Total GME(c) 8.5% 9.0%
Total GMIO(c)(d)(e) 10.3% 10.0%
Total Worldwide 11.2% 11.2%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 40.6% 19.9%
% Fleet Sales - Trucks 24.5% 15.2%
Total Vehicles 30.9% 17.1%
GMNA Capacity Utilization(f) 84.8% 37.7%
__________
Includes HUMMER, Saab, Saturn and Pontiac vehicle
(a) sales data.
Vehicle sales represent sales to the ultimate
(b) customer.
Vehicle sales primarily represent estimated sales to
(c) the ultimate customer.
Includes SGM, SGMW, FAW-GM and HKJV joint venture
(d) sales.
Ownership of 34% in SGMW and 50% in FAW-GM, under
the joint venture agreements, allows 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 global market share. These
entities are not consolidated for financial
reporting purposes. Income and losses related to
these entities are recorded in Equity income, net of
(e) tax.
(f) Two shift rated, annualized.
Successor Predecessor
--------- -----------
March 31, December 31,
2010 2009
---------- -------------
Worldwide Employment (thousands)
GMNA(a) 103 103
GME(b)(c) 45 50
GMIO(d) 57 62
--- ---
Total Worldwide 205 215
=== ===
United States - Salaried 26 26
United States - Hourly 52 51
__________
Beginning with the three months ended March 31, 2010
substantially all of the 1,200 Corporate employees are
(a) included in GMNA.
Decrease in GME primarily reflects reduction of 3,200
employees due to the sale of Saab and reduction of 800
(b) hourly employees in Germany.
GME hourly inactive employees are no longer included in
GME's totals. GME hourly inactive employees excluded in
the three months ended March 31, 2010 and 2009 were 2,300
(c) and 2,500 employees.
Decrease in GMIO reflects a reduction of 2,400 employees
due to the sale of GM's India Operations and the
reclassification of 2,700 hourly employees to contract
(d) status.
Successor Predecessor
--------- -----------
Three Months Three Months
Ended Ended
March 31, March 31,
2010 2009
---------- ----------
Worldwide Payroll (billions) $3.0 $2.9
General Motors Company and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
Successor Predecessor
--------- -----------
Three Months Three Months
Ended Ended
March 31, March 31,
2010 2009
---------- ----------
Net sales and revenue $31,476 $22,431
------- -------
Costs and expenses
Cost of sales 27,591 24,611
Selling, general and administrative expense 2,684 2,497
Other expenses, net 46 985
--- ---
Total costs and expenses 30,321 28,093
------ ------
Operating income (loss) 1,155 (5,662)
Equity in loss of GMAC - (500)
Interest expense (337) (1,230)
Interest income and other non-operating
income, net 485 425
Gain (loss) on extinguishment of debt (1) 906
--- ---
Income (loss) before income taxes and equity
income 1,302 (6,061)
Income tax expense (benefit) 509 (114)
Equity income, net of tax 403 48
--- ---
Net income (loss) 1,196 (5,899)
Less: Net income attributable to
noncontrolling interests 128 76
--- ---
Net income (loss) attributable to
stockholders 1,068 (5,975)
Less: Cumulative dividends on preferred
stock 203 -
--- ---
Net income (loss) attributable to common
stockholders $865 $(5,975)
==== =======
Earnings (loss) per share
Basic
Net income (loss) attributable to common
stockholders $1.73 $(9.78)
Weighted-average common shares outstanding 500 611
Diluted
Net income (loss) attributable to common
stockholders $1.66 $(9.78)
Weighted-average common shares outstanding 522 611
General Motors Company and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions, except share amounts)
(Unaudited)
Successor
March
31, December
2010 31, 2009
------ --------
ASSETS
Current Assets
Cash and cash
equivalents $23,310 $22,679
Marketable securities 153 134
--- ---
Total cash, cash
equivalents and
marketable securities 23,463 22,813
Restricted cash 12,741 13,917
Accounts and notes
receivable (net of
allowance of $188 and
$250) 8,694 7,518
Inventories 11,192 10,107
Assets held for sale 60 388
Equipment on operating
leases, net 2,319 2,727
Other current assets and
deferred income taxes 1,888 1,777
----- -----
Total current assets 60,357 59,247
Non-Current Assets
Equity in net assets of
nonconsolidated
affiliates 8,430 7,936
Assets held for sale - 530
Property, net 18,432 18,687
Goodwill 30,487 30,672
Intangible assets, net 13,690 14,547
Other assets 4,625 4,676
----- -----
Total non-current
assets 75,664 77,048
------ ------
Total Assets $136,021 $136,295
======== ========
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
(principally trade) $20,450 $18,725
Short-term debt and
current portion of
long-term debt
(including debt at GM
Daewoo of $1,308 at
March 31, 2010) 8,773 10,221
Liabilities held for
sale 60 355
Accrued expenses
(including derivative
liabilities at GM
Daewoo of $339 at March
31, 2010) 22,755 23,134
------ ------
Total current
liabilities 52,038 52,435
Non-Current Liabilities
Long-term debt
(including debt at GM
Daewoo of $740 at March
31, 2010) 5,401 5,562
Liabilities held for
sale - 270
Postretirement benefits
other than pensions 8,794 8,708
Pensions 26,492 27,086
Other liabilities and
deferred income taxes 13,245 13,279
------ ------
Total non-current
liabilities 53,932 54,905
------ ------
Total Liabilities 105,970 107,340
Commitments and
contingencies 6,998 6,998
Preferred stock, $0.01 par value
(1,000,000,000 shares
authorized, 360,000,000 shares
issued and outstanding (each
with a $25.00 liquidation
preference) at March 31, 2010
and December 31, 2009)
Equity
Common stock, $0.01 par
value (2,500,000,000
shares authorized,
500,000,000 shares
issued and outstanding
at March 31, 2010 and
December 31, 2009) 5 5
Capital surplus
(principally additional
paid-in capital) 24,050 24,050
Accumulated deficit (3,529) (4,394)
Accumulated other
comprehensive income 1,713 1,588
----- -----
Total stockholders'
equity 22,239 21,249
Noncontrolling interests 814 708
--- ---
Total equity 23,053 21,957
------ ------
Total Liabilities and
Equity $136,021 $136,295
======== ========
