GM Second Quarter 2010 Results Show Sustained Progress
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SEE ALSO: GMC Buyer's Guide
GM achieves second consecutive quarter of profitability and positive cash flow Net income of $1.3 billion and EPS of $2.55, free cash flow of $2.8 billion
DETROIT, August 12, 2010: General Motors Company today announced its second quarter 2010 results, marked by revenue of $33.2 billion and net income attributable to common stockholders of $1.3 billion, resulting in earnings per share on a diluted basis of $2.55. GM's second quarter earnings before interest and tax (EBIT) was $2.0 billion.
GM North America had EBIT in the second quarter 2010 of $1.6 billion, up from $1.2 billion in the first quarter. GM Europe had a loss before interest and taxes of $0.2 billion, an improvement of $0.3 billion from the first quarter. GM International Operations posted EBIT of $0.7 billion, down from $1.2 billion in the first quarter.
Cash flow from operating activities was $3.9 billion and after adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion. GM ended the second quarter with $32.5 billion in cash and marketable securities, including funds in the Canadian Health Care Trust escrow.
"I am pleased with our progress on achieving our business objectives," said Chris Liddell, vice chairman and chief financial officer. "We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit, and delivered two consecutive quarters of profitability and positive cash flow."
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 sustained 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 Six Three Three
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, March 31, December
2010 2010 2010 31, 2009
--------- --------- ---------- --------
Operating segments
GMNA(a) $1,592 $2,810 $1,218 $(3,443)
GME(a)(b) (160) (637) (477) (799)
GMIO(a)(b) 672 1,838 1,166 722
- -
Total operating
segments 2,104 4,011 1,907 (3,520)
Corporate and
eliminations(b) (71) (154) (83) (526)
--- ---- --- ----
EBIT 2,033 3,857 1,824 (4,046)
Interest income 114 204 90 75
Interest expense 250 587 337 329
Income tax expense
(benefit) 361 870 509 (861)
--- --- --- ----
Net income (loss)
attributable to
stockholders $1,536 $2,604 $1,068 $(3,439)
====== ====== ====== =======
__________
(a) Interest and income taxes are recorded centrally in Corporate;
therefore, there are no reconciling items for GM's operating segments
between EBIT and Net income (loss) attributable to stockholders.
(b) In the three months ended June 30, 2010 we changed our managerial
reporting structure so that certain entities geographically located
within Russia and Uzbekistan were transferred from our GME segment to
our GMIO segment. We have revised the segment presentation for all
periods presented.
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 Six Months Three Months Three Months
Ended Ended Ended Ended
June 30, June 30, March 31, December 31,
2010 2010 2010 2009
--------- --------- ---------- -------------
Adjusted EBIT $2,033 $3,734 $1,701 $(954)
Adjustments - 123 123 (3,092)
------
EBIT $2,033 $3,857 $1,824 $(4,046)
====== ====== ====== =======
Free Cash Flow(a) $2,834 $3,804 $970 $(2,919)
Capital
expenditures(a) 1,011 1,851 840 1,033
----- ----- --- -----
Net cash provided
by (used in)
operating $3,845 $5,655 $1,810 $(1,886)
activities(a) ====== ====== ====== =======
__________
(a) In the three months ended June 30, 2010 we identified several items
which had not been properly classified in our condensed consolidated
statement of cash flows for the three months ended March 31, 2010.
For the six months ended June 30, 2010, we have correctly presented
these items in our condensed consolidated statement of cash flows and
corrected the amounts presented for the three months ended
March 31, 2010.
In the three months ended March 31, 2010 Adjustments included the
following:
Gain of $123 million as a result of the sale of Saab
o Automobile AB to Spyker Cars NV.
In the three months ended December 31, 2009 Adjustments included
the following:
o 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 healthcare costs of UAW
hourly retirees and their beneficiaries;
o Impairment charge of $270 million related to GM's
investment in Ally Financial common stock;
o 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 Delphi facilities; and
o 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 Automotive, Inc.).
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor Predecessor
--------- -----------
Three Six Three Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2010 2010 2009 2009
--------- --------- --------- ---------
Production Volume (units in
thousands)(a)
GMNA - Cars 279 523 170 287
GMNA - Trucks 452 876 225 480
Total GMNA 731 1,399 395 767
GME 331 636 315 579
GMIO(b)(c) 1,195 2,307 828 1,523
----- ----- --- -----
Total Worldwide 2,257 4,342 1,538 2,869
===== ===== ===== =====
__________
(a) Production volume represents the number of vehicles manufactured
by GM's and Old GM's assembly facilities and also includes
vehicles produced by certain joint ventures.
(b) Includes Shanghai General Motors Co., Ltd. (SGM), SAIC-GM Wuling
Automobile Co., Ltd. (SGMW), FAW-GM Light Duty Commercial
Vehicle Co., Ltd. (FAW-GM) joint venture production in China
and SAIC GM Investment Ltd. (HKJV) joint venture production in
India.
(c) The joint venture agreements with SGMW (34%) 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 volume in China. These entities are not consolidated
for financial reporting purposes. Income and losses related to
these entities are recorded in Equity income (loss), net of tax.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor Predecessor
--------- -----------
Three Three
Months Six Months Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2010 2010 2009 2009
--------- --------- --------- ---------
Vehicle Sales (units
in
thousands)(a)(b)(c)
United States
Chevrolet - Cars 192 348 148 241
Chevrolet - Trucks 252 434 202 356
Cadillac 35 65 25 49
Buick 38 70 27 47
GMC 83 152 64 118
Other 3 11 76 143
Total United States 603 1,081 541 954
Canada, Mexico and
Other 113 199 115 203
--- --- --- ---
Total GMNA(d) 716 1,280 657 1,157
----- -----
GME
Opel/Vauxhall 314 608 348 645
Chevrolet 127 232 117 216
Other 1 5 9 20
Total GME(e) 442 846 474 881
GMIO
Chevrolet 441 898 347 671
Buick 132 254 114 196
GM Daewoo 32 60 28 47
Holden 37 73 30 59
Wuling 303 637 262 493
FAW-GM 22 50 - -
Cadillac 5 10 3 5
Other 23 45 23 45
Total GMIO(e)(f)(g) 995 2,026 807 1,517
----- -----
Total Worldwide 2,153 4,152 1,938 3,555
===== ===== ===== =====
__________
(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.
(e) Vehicle sales primarily represent estimated sales to the ultimate
customer.
(f) Includes SGM, SGMW and FAW-GM joint venture sales in China and HKJV
joint venture sales in India.
(g) The joint venture agreements with SGMW (34%) 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 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 these
entities are recorded in Equity income (loss), net of tax.
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor Predecessor
--------- -----------
Three Three
Months Six Months Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2010 2010 2009 2009
--------- --------- --------- ---------
Market Share(a)(b)
United States -
Cars 15.4% 15.1% 17.5% 16.5%
United States -
Trucks 23.2% 22.6% 23.5% 22.5%
Total United
States 19.4% 18.9% 20.5% 19.5%
Total GMNA(c) 18.7% 18.3% 19.9% 19.0%
Total GME(d) 8.8% 8.6% 9.2% 9.1%
Total
GMIO(d)(e)(f) 10.3% 10.3% 10.4% 10.2%
Total Worldwide 11.6% 11.4% 11.9% 11.6%
U.S. Retail/Fleet
Mix
% Fleet Sales -
Cars 42.4% 41.6% 29.7% 25.6%
% Fleet Sales -
Trucks 27.8% 26.4% 28.4% 22.5%
Total Vehicles 33.5% 32.3% 28.9% 23.8%
GMNA Capacity
Utilization(g) 92.9% 88.8% 39.4% 38.5%
__________
(a) Includes HUMMER, Saturn and Pontiac vehicle sales data.
(b) Includes Saab vehicle sales data through February 2010.
(c) Vehicle sales represent sales to the ultimate customer.
(d) Vehicle sales primarily represent estimated sales to the
ultimate customer.
(e) Includes SGM, SGMW, FAW-GM joint venture sales in China
and HKJV joint venture sales in India.
(f) The joint venture agreements with SGMW (34%) 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 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 (loss),
net of tax.
(g) Two shift rated, annualized.
Successor
---------
December 31,
June 30, 2010 2009
------------- -------------
Worldwide Employment
(thousands)
GMNA 105 103
GME(a) 42 50
GMIO(b) 61 62
Total Worldwide 208 215
United States - Salaried 26 26
United States - Hourly 53 51
__________
(a) Decrease in GME primarily relates to the sale of Saab,
employees located within Russia and Uzbekistan transferred
from the GME segment to the GMIO segment and restructuring
initiatives in Germany, Spain, and the United Kingdom.
(b) Decrease in GMIO reflects a reduction of 2,400 employees due to
the sale of the India Operations.
Successor Predecessor
--------- -----------
Three Months Six Months Three Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2010 2010 2009 2010
--------- --------- --------- ---------
Worldwide Payroll
(billions) $3.1 $6.1 $2.9 $5.9
General Motors Company and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
Successor Predecessor
--------- -----------
Three Six Three Six
Months Months Months Months
Ended Ended Ended Ended
June
30, June 30, June 30, June 30,
2010 2010 2009 2009
----- --------- --------- ---------
Net sales and
revenue $33,174 $64,650 $23,047 $45,478
------- ------- ------- -------
Costs and expenses
Cost of sales 28,759 56,350 29,384 53,995
Selling, general and
administrative
expense 2,623 5,307 2,936 5,433
Other expenses, net 39 85 169 1,154
Total costs and
expenses 31,421 61,742 32,489 60,582
------ ------ ------ ------
Operating income
(loss) 1,753 2,908 (9,442) (15,104)
Equity in income of
and disposition of
interest in Ally
Financial - - 1,880 1,380
Interest expense (250) (587) (3,375) (4,605)
Interest income and
other non-
operating income,
net 59 544 408 833
Loss on
extinguishment of
debt - (1) (1,994) (1,088)
Reorganization
expenses, net - - (1,157) (1,157)
--- --- ------ ------
Income (loss) before
income taxes and
equity income 1,562 2,864 (13,680) (19,741)
Income tax expense
(benefit) 361 870 (445) (559)
Equity income
(loss), net of tax 411 814 (2) 46
--- --- --- ---
Net income (loss) 1,612 2,808 (13,237) (19,136)
Less: Net income
(loss) attributable
to noncontrolling
interests 76 204 (332) (256)
--- --- ---- ----
Net income (loss)
attributable to
stockholders 1,536 2,604 (12,905) (18,880)
Less: Cumulative
dividends on
preferred stock 202 405 - -
--- --- --- ---
Net income (loss)
attributable to
common stockholders $1,334 $2,199 $(12,905) $(18,880)
====== ====== ======== ========
Earnings (loss) per
share
Basic
Net income (loss)
attributable to
common stockholders $2.67 $4.40 $(21.12) $(30.91)
Weighted-average
common shares
outstanding 500 500 611 611
Diluted
Net income (loss)
attributable to
common stockholders $2.55 $4.21 $(21.12) $(30.91)
Weighted-average
common shares
outstanding 522 522 611 611
General Motors Company and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions, except share amounts)
(Unaudited)
Successor
---------
June December
30, 31,
2010 2009
----- ---------
ASSETS
Current Assets
Cash and cash equivalents $26,773 $22,679
Marketable securities 4,761 134
Total cash, cash equivalents
and marketable securities 31,534 22,813
Restricted cash and
marketable securities 1,393 13,917
Accounts and notes receivable
(net of allowance of $272
and $250) 8,662 7,518
Inventories 11,533 10,107
Assets held for sale - 388
Equipment on operating
leases, net 3,008 2,727
Other current assets and
deferred income taxes 1,677 1,777
----- -----
Total current assets 57,807 59,247
Non-Current Assets
Equity in net assets of
nonconsolidated affiliates 8,296 7,936
Assets held for sale - 530
Property, net 18,106 18,687
Goodwill 30,186 30,672
Intangible assets, net 12,820 14,547
Other assets 4,684 4,676
Total non-current assets 74,092 77,048
Total Assets $131,899 $136,295
======== ========
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally
trade) $20,755 $18,725
Short-term debt and current
portion of long-term debt
(including debt at GM Daewoo
of $1,021 at 5,524 10,221
June 30, 2010)
Liabilities held for sale - 355
Accrued expenses (including
derivative liabilities at GM
Daewoo of $352 at June 30,
2010) 24,068 23,134
------ ------
Total current liabilities 50,347 52,435
Non-Current Liabilities
Long-term debt (including
debt at GM Daewoo of $722 at
June 30, 2010; Note 10) 2,637 5,562
Liabilities held for sale - 270
Postretirement benefits other
than pensions 8,649 8,708
Pensions 25,990 27,086
Other liabilities and
deferred income taxes 13,377 13,279
------ ------
Total non-current
liabilities 50,653 54,905
------ ------
Total Liabilities 101,000 107,340
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 June
30, 2010 and December 31, 2009)
Equity
Common stock, $0.01 par value
(2,500,000,000 shares
authorized, 500,000,000
shares issued and 5 5
outstanding at June 30, 2010 and
December 31, 2009)
Capital surplus (principally
additional paid-in capital) 24,052 24,050
Accumulated deficit (2,195) (4,394)
Accumulated other
comprehensive income 1,153 1,588
----- -----
Total stockholders' equity 23,015 21,249
Noncontrolling interests 886 708
Total equity 23,901 21,957
Total Liabilities and Equity $131,899 $136,295
======== ========
