GM Reports Positive Preliminary First Quarter Financial Results
 |
* Reported net income $62 million
* Record first quarter global sales of 2.26 million units
* Improved automotive operations, reported net income of $272 million
* Adjusted automotive operating cash flow of $300 million
DETROIT, May 3 -- General Motors Corp. today announced its financial results for the first quarter of 2007. The company posted record global sales, and improved automotive profitability and operating cash flow for the quarter.
"The first quarter of 2007 marked another quarter of continued progress in GM's global automotive operations. We were able to expand vehicle sales and improve automotive profitability based on the progress in our turnaround initiatives in North America and Europe and our expansion strategy for key growth markets like China, Russia and South America," said GM Chairman and Chief Executive Officer, Rick Wagoner. "We continue to see progress on the automotive bottom line as we implement the strategies laid out two years ago."
GM reported net income of $62 million, or $0.11 per diluted share, including special items, in the first quarter of 2007, compared with net income of $602 million, or $1.06 per diluted share, in the year-ago quarter.
The decline in reported GM earnings is more than accounted for by losses in the residential mortgage business of GMAC Financial Services (GMAC), driven by continued weakness in the U.S. nonprime mortgage sector (following the 51 percent equity sale of GMAC in late 2006, GM is reporting its 49 percent ownership interest using the equity accounting method). In addition, last year's results included a one-time after tax gain of $395 million due to the sale of a portion of GM's equity ownership position in Suzuki Motors.
The reported results for the first quarter of 2007 include unfavorable special items totaling $32 million after tax, or $0.06 per diluted share, related largely to restructuring actions in Europe and Asia Pacific, offset in part by a favorable item related to workforce attrition costs for previously divested components plants. Details on the special items are included in the "Highlights" section of this news release.
Excluding special items, GM posted adjusted net income of $94 million, or $0.17 per diluted share in the first quarter of 2007, compared to adjusted net income of $350 million, or $0.62 per diluted share in the first quarter of 2006. Total revenue for the first quarter of 2007 was $43.9 billion, down from $52.4 billion, almost entirely due to GMAC revenue no longer being included in GM's consolidated results. Automotive revenue for the first quarter of 2007 was $42.9 billion, down slightly from $43.6 billion in the first quarter of 2006.
GM Automotive Operations
Net income from GM's global automotive operations totaled $304 million on an adjusted basis, in the first quarter of 2007 (reported net income of $272 million), compared to $40 million in the year-ago quarter (reported net income of $295 million).
GM sold an all-time first quarter record 2.26 million cars and trucks in the first quarter of 2007, up 3 percent, or 67,000 units, over the first quarter of 2006. Sales in the GM Asia Pacific (GMAP) region grew more than 20 percent; GM Latin America, Africa and Middle East (GMLAAM) grew 17 percent, and GM Europe (GME) grew 6 percent. GM's all-time sales record was achieved despite challenging market conditions in the U.S. largely due to volatile fuel prices and contraction in the housing market.
GM North America (GMNA) posted an adjusted loss of $85 million in the first quarter of 2007 (reported net loss of $46 million), an improvement of $166 million compared to an adjusted net loss of $251 million in the year-ago quarter (reported net loss of $292 million).
The GMNA improvement in the first quarter was mostly attributable to large structural cost savings in health care and manufacturing related expenses. GMNA also enjoyed positive product mix related to the strong acceptance of new launch products as well as GM's continued strategy to reduce its daily-rental fleet business.
GMNA was able to improve its year-over-year net income, despite a significant production reduction of 192,000 units. The volume decline reflected the disciplined implementation of the company's sales and marketing strategy, including reducing dealer inventories in the U.S. and Canada by 111,000 units as compared to year-ago levels, and reducing deliveries to daily rental companies in the U.S. and Canada by 69,000 units. Retail sales were up slightly in the U.S. for the quarter, despite challenging market conditions.
"This quarter's results again demonstrate progress in the implementation of our North America turnaround plan. They reflect major cost reductions once again, which more than offset lower volume -- a function of the disciplined implementation of our product-based sales and marketing strategy," Wagoner said. "And, our newest products such as the GMC Acadia and Chevrolet Silverado have been well accepted by consumers, which gives us confidence that the most important element of our North America turnaround -- product excellence -- is well on track."
GME adjusted net earnings for the first quarter of 2007 amounted to $42 million (reported net income of $5 million), compared with $131 million in the first quarter of 2006 (reported net income of $59 million). The decline in net income is attributable to unfavorable product mix, material cost and lower gains on commodity hedging, which was partially offset by improved structural cost and favorable pricing.
GME set a first quarter sales record, with almost 554,000 deliveries. This marks the highest quarterly retail sales ever for the region, and the best market share performance in 10 years at 9.8 percent. And in the growing market of Russia, GM sales increased by 128 percent, outpacing the 26 percent growth in that market.
"GM Europe's record sales for the quarter reflect strong acceptance of our newest Opel/Vauxhall cars, continued progress with our multi-brand strategy -- including an all-time Chevrolet Europe sales record -- and strength in the key growth markets of Europe, especially Russia," Wagoner said.
GMAP posted adjusted net income of $150 million in the first quarter of 2007 (reported net income of $116 million), up from $97 million a year ago (reported net income of $492 million). Despite the loss of income from the equity sale of Suzuki, the improvement reflects an approximate 20 percent sales volume increase led by China, India and South Korea, record exports of GM-DAT products and improved performance at Holden.
GMAP revenue was up almost 35 percent, at $4.6 billion, compared with the year-ago quarter. GMAP also set all-time records in sales and market share growth, outpacing overall industry growth. Building on the strength of the well-established Buick brand, new products such as the Cadillac SLS and Chevrolet Epica are also being well received in key markets like China.
"Our strongest growth is in the Asia Pacific market, which is critically important as this will be the fastest growing region in the world over the next decade," Wagoner said. "We continue to build on our already strong footprint in China, take advantage of GM-DAT's great capabilities, and move aggressively in other important markets, like India."
Net income for GMLAAM tripled to set a new first quarter earnings record of $201 million in the first quarter of 2007, up from $67 million in the year ago period (reported net income of $40 million). The improvement in profitability was driven by very strong volume, as well as better pricing and product mix.
The sales growth in the LAAM region is consistent across all major markets, with significant gains in key Latin American countries as well as strong performance in the Middle East and South Africa. Revenue was up 13 percent over the same quarter last year, setting a new first quarter record for GMLAAM.
"GMLAAM had an extremely strong quarter, setting records in both sales and profitability, on the strength of our traditionally strong representation in this growing region. The outlook is bright for continued strong results at GMLAAM for the rest of the year, and beyond," Wagoner said.
GMAC
GMAC posted a net loss of $305 million in the first quarter of 2007, compared to net income of $495 million in the year-ago period. For the first quarter, GM recognized a net loss of $115 million associated with its 49 percent ownership of GMAC, including the accrual of dividends on GMAC preferred membership interests and certain tax benefits realized.
GMAC results were significantly impacted by a net loss of $910 million at Residential Capital, LLC (ResCap) due to continued pressures in the U.S. mortgage market. GMAC's first quarter net income generated by auto finance, insurance and other operations was $605 million, more than double the earnings generated by these same operations in the first quarter of 2006.
GMAC indicated its long-term prospects continue to look favorable based on strong business fundamentals across its automotive finance and insurance operations. In addition, GMAC indicated it anticipates a considerable improvement in ResCap's earnings performance in the second quarter this year, with losses in the U.S. residential mortgage sector expected to be at a much reduced level.
Cash and Liquidity
GM generated adjusted automotive operating cash flow of $300 million for the first quarter of 2007, an improvement of $1.5 billion year-on-year, with all four regions reporting improvement.
Cash, marketable securities, and readily-available assets of the Voluntary Employees' Beneficiary Association (VEBA) trust totaled $24.7 billion at March 31, 2007, up from $21.6 billion on March 31, 2006, but down from the year-end 2006 total of $26.4 billion.
Results for the first quarter of 2007 are preliminary and may be revised prior to the filing of GM's first quarter report on Form 10-Q in early May.
General Motors Corp. , the world's largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include the
following non-GAAP financial measures: (a) adjusted net income,
(b) managerial cash flow, and (c) GM North America vehicle
revenue per unit. Each of these financial measures excludes the
impact of certain items and therefore has not been calculated
in accordance with U.S. generally accepted accounting principles,
or GAAP.
Adjusted Net Income
Adjusted net income excludes charges for the special attrition
program, restructuring and impairments charges, and gains on
the sale of business interests. Each of the adjustments is
described in more detail below. This press release also contains
a reconciliation of each of these non-GAAP measures to its most
comparable GAAP financial measure.
Management believes that these non-GAAP financial measures
provide meaningful supplemental information regarding our
operating results because they exclude amounts that GM management
does not consider part of operating results when assessing the
performance of the organization and measuring the results of
GM's performance. In addition, GM has historically reported
similar non-GAAP financial measures. GM believes that inclusion
of these non-GAAP financial measures provides consistency and
comparability with past earnings releases. GM management uses
these non-GAAP financial measures to evaluate GM's performance
and believes these measures allow GM management to readily view
operating trends, perform analytical comparisons, benchmark
performance among geographic regions and assess whether the GM
North American structural cost turnaround plan is on target.
Also, GM management uses adjusted net income for forecasting
purposes, and in determining its future capital investment
allocations. Also, adjusted net income is a key variable in
determining management incentive compensation. Accordingly, GM
believes these non-GAAP financial measures are useful to
investors in allowing for greater transparency of supplemental
information used by management in its financial and operational
decision-making.
While GM believes that these non-GAAP financial measures
provide useful supplemental information, there are limitations
associated with the use of these non-GAAP financial measures.
These non-GAAP financial measures are not prepared in accordance
with GAAP, do not reflect a comprehensive system of accounting
and may not be completely comparable to similarly titled
measures of other companies due to potential differences in the
exact method of calculation between companies. Items such as
special attrition program agreement and restructuring charges
that are excluded from GM's non-GAAP financial measures can
have a material impact on net earnings. As a result, these
non-GAAP financial measures have limitations and should not
be considered in isolation from, or as a substitute for, net
earnings, cash flow from operations or other measures of
performance prepared in accordance with GAAP. GM compensates
for these limitations by using these non-GAAP financial measures
as supplements to GAAP financial measures and by reviewing the
reconciliations of the non-GAAP financial measures to their
most comparable GAAP financial measure. Investors are encouraged
to review the reconciliations of these non-GAAP financial
measures to their most comparable GAAP financial measures that
are included elsewhere in this press release.
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
The following is a discussion of the adjustments to the
comparable GAAP financial measure that produces our non-GAAP
financial measures:
- Special attrition program charges. Our non-GAAP financial
measures exclude the estimated charge associated with the
special attrition program agreement among the UAW, GM and
Delphi. Management believes it is useful in evaluating the
performance of GM and its management teams and business units
during a particular time period to exclude charges associated
with the special attrition program, because the charge
occurs irregularly and is generally associated with one-time
structural changes to GM's North America business. Accordingly,
management does not consider these costs as part of its core
earnings for purposes of evaluating the performance of the
business, and excludes such costs when evaluating the
performance of the Corporation, its business units and its
management teams and when making decisions to allocate
resources among GM's business units.
- Restructuring and impairment charges. Our non-GAAP financial
measures exclude exit costs and related charges, primarily
consisting of severance costs and lease abandonment costs,
and any subsequent changes in estimates related to exit
activities as they relate to GM's significant restructurings,
which involved significant layoffs. Management believes the
exclusion of restructuring and impairment charges from
adjusted net income is useful because management does not
consider these costs part of GM's core earnings in evaluating
GM's operational managers and the exclusion permits investors
to evaluate the performance of our management the same way
management does. Additionally, management excludes restructuring
and impairment charges in its determinations regarding the
allocation of resources, such as capital investment, among
the Corporation's business units and as part of its forecasting
and budgeting.
- Gains on the sale of business interests. The gains on the
sale of business interests are excluded from adjusted net
income. While GM is involved in sales of its business interests
from time to time and the Corporation may have significant
gains or losses from such sales in the future, such events
have historically occurred sporadically. Management excludes
the charges associated with these events when it evaluates the
Corporation's operations and for internal reporting, forecasting
purposes and allocation of additional resources.
Managerial Cash Flow
GM also reports non-GAAP managerial automotive operating
cash flow in its earnings releases and charts for securities
analysts. Management believes that providing managerial
automotive operating cash flow furnishes it and investors with
useful information by representing the cash flow generated or
consumed by its automotive operations, including cash consumed
by automotive capital expenditures and equity investments in
companies related to our core business and cash generated by
sales of automotive operating assets and equity investments in
companies related to GM's core business, before funding
non-operating-related obligations including debt maturities,
dividends and other non-operating items. Management uses this
non-GAAP financial measure to assess its automotive cash flow
when evaluating the performance of GM, its business units and
its management teams and when making decisions to allocate
resources among GM's business units.
General Motors Corporation
Use of Non-GAAP Financial Measures (Concluded)
GM North America Vehicle Revenue per Unit
GM's earnings releases and charts for securities analysts
also include the use of non-GAAP measures of revenue per vehicle.
Management uses revenue per vehicle to track operating efficiency
and to facilitate comparisons between periods and between
manufacturers, and believes that it would provide valuable
information to investors who are interested in identifying trends
and comparing different companies. Revenue per vehicle includes
certain vehicles sales to other GM regions that are excluded from
GAAP reporting, and excludes non-vehicle sales such as service
parts and operations and OnStar service, and other income that
GM does not derive from the sale of vehicles, such as interest
on the GM credit card. Management also includes sales to daily
car rental companies in revenue per vehicle, although they are
not treated as sales under GAAP reporting because of GM's
repurchase obligations.
General Motors Corporation
List of Special Items - After Tax
(Dollars in millions except per share amounts)
(Unaudited)
Three Months Ended
March 31, 2007
------------------
Net
Income EPS
------ ------
REPORTED
--------
Net income $62 $0.11
ADJUSTMENTS
-----------
Restructuring (A) 65 0.12
Plant Closure and Benefit Guarantees (B) (27) (0.05)
Special Attrition Program (C) (12) (0.02)
Asset Impairment (D) 6 0.01
-- ----
Subtotal 32 0.06
ADJUSTED
--------
-- ----
Adjusted Income - Basic EPS $94 $0.17
== ====
Adjusted EPS - Fully Diluted $0.17
====
(A) Relates to various restructuring initiatives, as follows
(all amounts after-tax):
- Restructuring charges of $37 million recognized at GME
for separation programs primarily in Germany and Sweden.
- Restructuring charges of $28 million recognized at GMAP
for the voluntary separation program at Holden.
(B) Relates to recognition by GMNA of an after-tax curtailment
gain of $25 million with respect to postretirement benefits
and a favorable after-tax adjustment of $2 million in
connection with the closure of two former component plants.
(C) Relates to a favorable curtailment and true-up adjustment
relating to the Special Attrition Program for GMNA.
(D) Relates to impairment of tooling and residual assets at
GMAP triggered by a reduction in the production forecast
for Holden.
General Motors Corporation
List of Special Items - After Tax
(Dollars in millions except per share amounts)
(Unaudited)
Three Months Ended
March 31, 2006
(Restated)
------------------
Net
Income EPS
------ ------
REPORTED
--------
Net income $602 $1.06
ADJUSTMENTS
-----------
Restructuring (A) 91 0.16
Special Attrition Program (B) 52 0.09
Sale of Suzuki investment (C) (395) (0.69) *
--- ----
Subtotal (252) (0.44)
ADJUSTED
--------
--- ----
Adjusted Income - Basic EPS $350 $0.62 *
=== ====
Adjusted EPS - Fully Diluted $0.62 *
====
* Adjusted EPS has been changed from $0.66 per share to $0.62
per share to reflect a revision to the special item related
to the gain on sale of our Suzuki investment from $372 million,
after-tax to $395 million, after-tax.
(A) Relates to various restructuring initiatives, as follows
(all amounts after tax):
- Estimated charges of $65 million related to separations
of salaried employees at GMNA.
- Curtailment charges associated with modifications to the
U.S. Retirement Program for Salaried Employees announced
in the first quarter of 2006. GMNA and Other Operations
recognized charges of $12 million and $3 million
respectively associated with these modifications.
- A favorable adjustment of $88 million for higher than
anticipated headcount reductions associated with previously
announced GMNA plant idling activities.
- Other restructuring charges of $72 million and $27 million,
recognized at GME and GMLAAM, respectively.
(B) Relates to an after-tax charge of $52 million associated
with the $35,000 lump sum payments for normal or early
voluntary retirements, recognized at GMNA.
(C) Relates to the sale of 92.36 million shares of GM's
investment in Suzuki for approximately $2 billion in cash,
reducing GM's equity stake in Suzuki from 20.4% to
approximately 3.7% (16.3 million shares). The after-tax gain
of $395 million was recognized at GMAP.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
First Quarter
-------------
2006
2007 Restated
----- --------
(Dollars in millions except per share amounts)
Total net sales and revenues $43,909 $52,376
Adjusted $43,909 $52,376
Net income $62 $602
Adjusted $94 $350
Net margin
(Net income / Total net sales
and revenues) 0.1% 1.1%
Adjusted 0.2% 0.7%
Earnings per share - basic $0.11 $1.06
Earnings per share - diluted $0.11 $1.06
Earnings per share - adjusted
Diluted $0.17 $0.62
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 566 566
Diluted shares 567 569
Cash dividends per share
of common stocks $0.25 $0.25
See reconciliation of adjusted financial results.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
First Quarter
-------------
2007 2006
Restated
----- --------
Auto & Other total cash & marketable
securities at March 31 ($Bil's) $21.1 $18.8
Readily-available assets in VEBA 3.6 2.8
---- ----
Total Auto & Other cash &
marketable securities plus
readily-available assets in VEBA $24.7 $21.6
==== ====
Auto & Other Operations ($Mil's)
Depreciation $1,257 $1,114
Amortization of special
tools 725 738
Amortization of intangible
assets 17 17
----- -----
Total $1,999 $1,869
===== =====
GM's share of nonconsolidated
affiliates' net income (loss)
($Mil's)
GMAC $(183) -
Shanghai GM and SAIC-GM-Wuling $117 $71
Other+ $39 $55
+ GM sold most of its investment in Suzuki in the first
quarter of 2006, and consequently now accounts for its
remaining investment as an equity security, and no longer
records income on the equity basis.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
First Quarter
2007 and 2006
--------------
(Dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
Restated Restated
---- -------- ---- ---- ---- --------
Total net sales
and revenues
GMNA $28,506 $30,857 $ - $ - $28,506 $30,857
GME 8,485 8,055 - - 8,485 8,055
GMLAAM 3,573 3,161 - - 3,573 3,161
GMAP 4,559 3,386 - - 4,559 3,386
Other Auto (1) (2,222) (1,881) - - (2,222) (1,881)
------ ------ --- --- ------ ------
Total GMA 42,901 43,578 - - 42,901 43,578
Other (1) 22 (49) - - 22 (49)
------ ------ --- --- ------ ------
Total Auto &
Other (1) 42,923 43,529 - - 42,923 43,529
------ ------ --- --- ------ ------
GMAC 50 8,813 - - 50 8,813
Other Financing(1) 936 34 - - 936 34
----- ----- --- --- ----- -----
Total FIO 986 8,847 - - 986 8,847
------ ------ --- --- ------ ------
Total net sales
and revenues $43,909 $52,376 $ - $ - $43,909 $52,376
====== ====== === === ====== ======
Income (loss)
before income
taxes, equity
income and
minority interests
GMNA $(46) $(309) $(61) $64 $(107) $(245)
GME 2 92 57 115 59 207
GMLAAM 255 98 - 27 255 125
GMAP 94 681 49 (666) 143 15
Other Auto (7) (6) - - (7) (6)
--- --- --- --- --- ---
Total GMA 298 556 45 (460) 343 96
Other (210) (512) - 4 (210) (508)
--- --- --- --- --- ---
Total Auto &
Other 88 44 45 (456) 133 (412)
--- --- --- --- --- ---
GMAC (134) 706 - - (134) 706
Other Financing 54 1 - - 54 1
--- --- --- --- --- ---
Total Financing (80) 707 - - (80) 707
--- --- --- --- --- ---
Total income (loss)
before income taxes,
equity income and
minority
interests $8 $751 $45 $(456) $53 $295
=== === === === === ===
See footnotes
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
First Quarter
2007 and 2006
--------------
(Dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
Restated Restated
----- -------- ---- ----- ---- --------
Net income (loss)
GMNA $(46) $(292) $(39) $41 $(85) $(251)
GME 5 59 37 72 42 131
GMLAAM 201 40 - 27 201 67
GMAP 116 492 34 (395) 150 97
Other Auto (4) (4) - - (4) (4)
--- --- --- --- --- ---
Total GMA 272 295 32 (255) 304 40
Other (124) (189) - 3 (124) (186)
--- --- --- --- --- ---
Total Auto &
Other 148 106 32 (252) 180 (146)
--- --- --- --- --- ---
GMAC (115) 495 - - (115) 495
Other Financing 29 1 - - 29 1
--- --- --- --- --- ---
Total FIO (86) 496 - - (86) 496
--- --- --- --- --- ---
Net income (loss) $62 $602 $32 $(252) $94 $350
=== === === === === ===
Income tax expense
(benefit)
GMNA $3 $(11) $(22) $23 $(19) $12
GME (1) 35 20 43 19 78
GMLAAM 53 57 - - 53 57
GMAP 27 252 15 (271) 42 (19)
Other Auto (3) (2) - - (3) (2)
--- --- --- --- --- ---
Total GMA 79 331 13 (205) 92 126
Other (85) (321) - 1 (85) (320)
--- --- --- --- --- ---
Total Auto &
Other (6) 10 13 (204) 7 (194)
--- --- --- --- --- ---
GMAC (19) 222 - - (19) 222
Other Financing 25 - - - 25 -
--- --- --- -- --- ---
Total Financing 6 222 - - 6 222
--- --- --- --- --- ---
Income tax expense
(benefit) $- $232 $13 $(204) $13 $28
=== === === === === ===
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
First Quarter
2007 and 2006
-------------
(Dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
Restated Restated
----- -------- ---- ---- ---- --------
Effective tax rate
Total GM Corp. - 31% 29% 45% 25% 9%
GMNA (7)% 4% 36% 36% 18% (5)%
GME (50)% 38% 35% 37% 32% 38%
GMAC 14% 31% - - 14% 31%
Equity income (loss)
and minority interests
GMNA $3 $6 $ - $ - $3 $6
GME 2 2 - - 2 2
GMLAAM (1) (1) - - (1) (1)
GMAP 49 63 - - 49 63
Other Auto - - - - - -
-- -- -- -- -- --
Total GMA $53 $70 $ - $ - $53 $70
== == == == == ==
General Motors Corporation
Operating Statistics
First Quarter
----------------
2007 2006
---- ----
(Units in thousands)
Worldwide Production Volume
GMNA - Cars 399 496
GMNA - Trucks 664 759
----- -----
Total GMNA 1,063 1,255
GME 511 494
GMLAAM 222 194
GMAP 544 472
----- -----
Total Worldwide 2,340 2,415
===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 187 195
Chevrolet - Trucks 362 376
Pontiac 79 99
GMC 111 105
Buick 43 62
Saturn 57 47
Cadillac 47 51
Other 23 28
----- -----
Total United States 909 963
Canada, Mexico, and Other 146 160
----- -----
Total GMNA 1,055 1,123
GME 554 523
GMLAAM 269 230
GMAP* 388 324
----- -----
Total Worldwide 2,266 2,200
===== =====
Market Share
United States - Cars 19.3% 20.7%
United States - Trucks 25.7% 26.3%
Total United States 22.8% 23.8%
Total North America 22.5% 23.6%
Total Europe 9.8% 9.4%
Total LAAM 16.3% 16.1%
Asia Pacific 7.2% 6.4%
Total Worldwide 13.0% 13.1%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 36.8% 41.6%
% Fleet Sales - Trucks 18.4% 22.4%
Total Vehicles 25.5% 30.0%
GMNA Capacity Utilization
(2 shift rated) 88.9% 100.4%
* GMAP sales volume includes Wuling sales in China.
General Motors Corporation
Operating Statistics
First Quarter
----------------
2007 2006
Restated
---- --------
GMAC's Worldwide Cost of
Borrowing (2) 6.16% 5.50%
GMAC Period End Debt Spreads Over
U.S. Treasuries
2 Year 207 bp 445 bp
5 Year 251 bp 449 bp
10 Year 288 bp 474 bp
GMAC Automotive Finance Operations
Consumer Credit (North America)
Net charge-offs as a % of
managed receivables 1.29% 1.21%
Retail contracts 30 days
delinquent - % of average number
of contracts outstanding (3) 2.51% 2.34%
GMAC's Share of GM retail sales (U.S. only)
Total consumer volume (retail
and lease) as % of retail sales 42% 45%
SmartLease as % of retail sales 17% 22%
Worldwide Employment
at March 31 (in 000's)
United States Hourly 87 102
United States Salary 33 36
--- ---
Total United States 120 138
Canada, Mexico, and Other 29 31
--- ---
GMNA 149 169
GME 59 64
GMLAAM 33 31
GMAP 34 32
GMAC - 31
Other 2 2
--- ---
Total 277 329
=== ===
Worldwide Payrolls ($Bil's) $4.5 $5.3
See footnotes
General Motors Corporation
Footnotes:
----------
(1) Other Auto, Other Operations and Other Financing include
intercompany eliminations.
(2) Calculated by dividing total interest expense (excluding
mark to market adjustments) by total debt.
(3) Excludes accounts in bankruptcy.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
Three Months Ended
March 31,
-------------------
2007 2006
-------- --------
(Unaudited)
(As restated)
-------- ----------
Net sales and revenue
Automotive sales $ 42,923 $ 43,529
Financial services and insurance revenue 986 8,847
---------- ---------
Total net sales and revenue 43,909 52,376
---------- ---------
Costs and expenses
Automotive cost of sales 39,047 40,073
Selling, general, and administrative expense 3,375 3,427
Financial services and insurance expense 883 8,285
---------- ---------
Total costs and expenses 43,305 51,785
---------- ---------
Operating income 604 591
Equity in loss of GMAC LLC (183) --
Automotive and other interest expense (799) (638)
Automotive interest income and other
non-operating income 386 798
---------- ---------
Income before income taxes, other equity income
and minority interests 8 751
Income tax expense -- 232
Equity income and minority interests, net of tax 54 83
---------- ---------
Net income $ 62 $ 602
========== =========
Basic earnings per share:
Earnings per share, basic $ .11 $ 1.06
========== =========
Weighted average common shares outstanding, basic
(millions) 566 566
========== =========
Diluted earnings per share:
Earnings per share, diluted $ .11 $ 1.06
========== =========
Weighted average common shares outstanding,
diluted (millions) 567 569
========== =========
Cash dividends per share $ .25 $ .25
========== =========
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
March 31, December 31, March 31,
2007 2006 2006
--------- ----------- ----------
ASSETS (Unaudited) (Unaudited)
Current Assets (As restated)
Cash and cash equivalents $ 20,923 $23,774 $ 17,427
Marketable securities 159 138 1,396
-------- ------- --------
Total cash and marketable securities 21,082 23,912 18,823
Accounts and notes receivable, net 9,697 8,216 6,966
Inventories 15,431 13,921 14,867
Equipment on operating leases, net 5,650 6,125 7,217
Deferred income taxes and other current
assets 12,143 11,957 10,139
-------- ------- --------
Total current assets 64,003 64,131 58,012
Financing and Insurance Operations Assets
Cash and cash equivalents 301 349 17,441
Investments in securities 187 188 18,443
Finance receivables, net -- -- 180,173
Loans held for sale -- -- 18,171
Equipment on operating leases, net 10,457 11,794 32,570
Investment in GMAC LLC 7,355 7,523 --
Other assets 3,684 2,269 28,996
-------- ------- --------
Total Financing and Insurance Operations
assets 21,984 22,123 295,794
Non-Current Assets
Property, net 41,612 41,934 38,551
Deferred income taxes 32,476 32,967 22,387
Prepaid pension 17,639 17,366 37,478
Other assets 7,484 7,671 9,917
-------- ------- --------
Total non-current assets 99,211 99,938 108,333
-------- ------- --------
Total assets $185,198 $186,192 $462,139
======== ======= ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable (principally trade) $ 30,065 $26,931 $ 26,872
Short-term borrowings and current portion
of long-term debt 4,834 5,666 1,294
Accrued expenses 34,518 35,225 43,424
-------- ------- --------
Total current liabilities 69,417 67,822 71,590
Financing and Insurance Operations
Liabilities
Accounts payable 133 1,214 3,596
Debt 8,297 9,438 245,260
Other liabilities and deferred income
taxes 1,572 925 29,136
-------- ------- --------
Total Financing and Insurance Operations
liabilities 10,002 11,577 277,992
Non-Current Liabilities
Long-term debt 33,120 33,067 32,612
Postretirement benefits other than
pensions 48,998 50,086 31,431
Pensions 11,293 11,934 11,576
Other liabilities and deferred income
taxes 15,570 15,957 20,084
-------- ------- --------
Total non-current liabilities 108,981 111,044 95,703
-------- ------- --------
Total liabilities 188,400 190,443 445,285
Minority interests 1,145 1,190 1,075
Stockholders' Equity (Deficit)
Preferred stock, no par value,
authorized 6,000,000, no shares
issued and outstanding -- -- --
$1 2/3 par value common stock
(2,000,000,000 shares authorized,
756,637,541 and 565,738,371 shares
issued and outstanding at March 31, 2007,
respectively 756,637,541 and 565,670,254
shares issued and outstanding at
December 31, 2006, respectively and
756,637,541 and 565,559,329 shares
issued and outstanding at March 31, 2006,
respectively) 943 943 943
Capital surplus (principally additional
paid-in capital) 15,346 15,336 15,296
Retained earnings 39 406 3,408
Accumulated other comprehensive (loss) (20,675) (22,126) (3,868)
-------- ------- --------
Total stockholders' equity (deficit) (4,347) (5,441) 15,779
-------- ------- --------
Total liabilities, minority interests,
and stockholders' equity (deficit) $185,198 $186,192 $462,139
======== ======= ========