PRESS RELEASE
GM Announces Earnings for Fourth Quarter and 1996
29 January 1997
GM Reports Income from Continuing Operations of $5.0 Billion for 1996, and $786 Million for the Fourth Quarter
GM Reports Income from Continuing Operations of $5.0 Billion for 1996, and $786 Million for the Fourth Quarter
DETROIT, Jan. 28 -- General Motors Corporation
reported today that income from continuing operations for the fourth quarter
of 1996 totaled $786 million, or $0.92 per share of GM $1-2/3 par value common
stock, compared with $1.6 billion, or $1.95 per share, in the fourth quarter
of 1995.
Income from continuing operations (which excludes EDS) for the calendar
year was $5.0 billion, or $6.07 per share, compared with $6.0 billion, or
$7.14 per share, in 1995.
The fourth-quarter results included an estimated unfavorable impact of
approximately $700 million after taxes, or $0.91 per share of GM $1-2/3 par
value common stock, due to strike-related work stoppages in the United States
and Canada, which resulted in the temporary shutdown of certain GM North
American assembly and component plants during the quarter. Work stoppages in
the United States and Canada reduced calendar-year earnings on an after-tax
basis by approximately $1.2 billion, after considering partial recovery of
production losses from the work stoppages. The fourth-quarter results in 1996
and 1995 also include a number of special and unusual items. (See "Special
Items" for additional information.)
"Clearly our 1996 fourth-quarter and calendar-year results were impacted
by the strike-related production losses in the United States and Canada and
are not indicative of GM's potential for continued profit improvement," GM
Chairman and Chief Executive Officer John F. Smith, Jr., said. "We continue
to rebuild our strength in North America and grow our business in key
international markets throughout the world."
Smith said GM has the flexibility to continue its drive to become the
industry's low-cost competitor. "We recognize that we face significant
challenges, but we're well-positioned to follow our strategy of utilizing
common parts and processes, while implementing lean operations, to compete on
a global basis, and grow the business in all of our sectors," he said.
Significant highlights of fourth-quarter and calendar-year-1996 results
from the automotive sectors included the following:
-- GM North American Operations (GM-NAO) and Delphi Automotive
Systems (Delphi) reported a combined (GM-NAO/Delphi) net loss of
$124 million in the fourth quarter of 1996, compared with net
income of $603 million in the fourth quarter of 1995. Work
stoppages in the United States and Canada resulted in an
estimated reduction to GM-NAO/Delphi's 1996-fourth-quarter net
income of approximately $655 million.
-- GM-NAO/Delphi earned $1.2 billion during calendar year 1996,
compared with earnings of $2.4 billion during the prior year,
with almost all of the year-over-year decrease accounted for by
the above-mentioned work stoppages in the first and fourth
quarters of 1996.
-- GM International Operations (GMIO) reported net income of
$353 million in the fourth quarter of 1996, compared with net
income of $498 million in the prior-year period.
-- GMIO's calendar-year-1996 net income totaled $1.5 billion,
versus net income of $1.6 billion in 1995.
Highlights of 1996 fourth-quarter and calendar-year results reported by
GM's major subsidiaries included the following:
-- General Motors Acceptance Corporation (GMAC) reported net
income of $274 million for the fourth quarter of 1996, compared
with net income of $263 million in the fourth quarter of 1995.
GMAC's calendar-year-1996 net income totaled $1.2 billion,
compared with $1.0 billion in 1995.
-- Hughes Electronics Corporation (Hughes) reported 1996-fourth-
quarter earnings of $281 million, compared with earnings of
$295 million in the prior-year period. Excluding the
approximately $45-million-estimated impact of the work stoppages,
Hughes' fourth-quarter earnings would have been $326 million.
Hughes earned a record $1.2 billion during calendar-year 1996,
compared with $1.1 billion in 1995, even after estimated losses
of approximately $75 million related to work stoppages in the
first and fourth quarters of 1996.
GM recently announced that shareholders will be asked to approve a
spin-off of Hughes' defense business and the transfer of Delco Electronics
from Hughes Electronics to GM's Delphi Automotive Systems. Subsequent to the
spin-off, Hughes' defense business would merge with Raytheon Company.
Additionally, GM's Class H common stock would be recapitalized and linked
solely to the performance of the Hughes telecommunications and space
business.
As previously announced, GM completed the split-off of Electronic Data
Systems Corporation (EDS) on June 7, 1996, and accordingly, the financial
results related to EDS through the split-off date have been classified as
discontinued operations. In 1995's fourth quarter, total net income of
$1.9 billion reflected income from discontinued operations of $269 million.
GM's total consolidated net income for 1996, including the results of EDS
through the split-off date, totaled $5.0 billion, or $6.06 per share, compared
with $6.9 billion, or $7.21 per share, in 1995.
(See additional information in sections detailing individual automotive
sector results, "Special Items" and "Highlights.")
GM CONSOLIDATED FINANCIAL DATA (with financing & insurance operations on
an equity basis)
The corporation's pretax income from continuing operations was
$240 million in the fourth quarter of 1996, compared with $1.3 billion in the
fourth quarter of 1995. Pretax income from continuing operations for the
calendar year was $4.5 billion, compared with $6.3 billion in 1995.
The income-tax benefit in the fourth quarter of 1996, which totaled
$262 million, was primarily due to research and experimentation credits in the
United States, as well as certain international tax benefits, and tax benefits
relating to the resolution of certain tax contingencies at Hughes. The
fourth-quarter-1995 effective income-tax rate of 3 percent reflected the
resolution of numerous tax issues worldwide, efficient utilization of a net-
operating-loss carryback, and tax benefits associated with the mix of foreign
earnings and foreign income taxes.
The corporation's net-profit margin -- income from continuing operations
as a percent of net sales and revenues -- was 2.2 percent in the fourth
quarter of 1996, compared with 4.3 percent in the fourth quarter of 1995. The
net-profit margin for the 1996 calendar year was 3.4 percent, compared with
4.2 percent in 1995.
The corporation's cash position continued to improve during the fourth
quarter of 1996. Cash and marketable securities totaled $17.0 billion at
Dec. 31, 1996, compared with $10.2 billion at Dec. 31, 1995, and $14.5 billion
at Sept. 30, 1996.
"We're extremely pleased that the year-end cash balance is well in excess
of our $13.0-billion target, and that it increased nearly $2.5 billion since
September 30, after considering the effects of strike-related work stoppages,"
Smith said. "This shows that we can generate significant cash -- even at
lower production levels -- and this was a major consideration in allowing us
to proceed with the dividend increase and stock buy-back program that was
announced yesterday," Smith said.
Fully consolidated net sales and revenues in the fourth quarter of 1996
totaled $40.9 billion compared with $41.4 billion in the same period last
year. Net sales and revenues for the 1996 calendar year totaled
$164.1 billion -- a 2.4-percent increase from 1995, when net sales and
revenues totaled $160.3 billion.
During the fourth quarter of 1996, GM dealers delivered 1,923,000 cars and
trucks worldwide, which resulted in a 15.5-percent worldwide market share,
compared to 1995's market share of 17.3 percent. In calendar-year 1996,
deliveries totaled 8,381,000 units, maintaining GM's position as the number-
one vehicle producer worldwide.
Following is a summary of financial performance for GM's automotive
business sectors (see "Highlights" for additional details):
GM NORTH AMERICAN OPERATIONS/DELPHI AUTOMOTIVE SYSTEMS (GM-NAO/DELPHI)
GM North American Operations, including Delphi Automotive Systems,
reported a net loss of $124 million in the fourth quarter of 1996 compared
with net income of $603 million in the fourth quarter of 1995. Net income for
1996 was $1.2 billion compared with net income of $2.4 billion in 1995.
The fourth-quarter financial results included an estimated unfavorable
impact of approximately $655 million after taxes in connection with the
strike-related work stoppages in the United States and Canada, in addition to
several items which are detailed in the "Special Items" section of this
report.
GM-NAO/Delphi reported a pretax loss of $418 million in the fourth quarter
of 1996, compared with pretax income of $656 million in the prior-year period,
with the 1996 work stoppages accounting for almost all of the variance. (See
"Highlights" for additional details.)
GM-NAO/Delphi's net-loss margin was 0.5 percent in the fourth quarter of
1996, compared with a net-profit margin of 2.3 percent in the prior-year
period. For calendar year 1996, GM-NAO/Delphi's net-profit margin was
1.2 percent, compared with 2.4 percent in 1995.
"Obviously, we took a financial hit from the strike-related production
losses, in both the first and fourth quarters of 1996," Smith said. "Our
results were also affected by restrained availability of certain product
offerings due to the significant number of new-vehicle launches, along with
the predictable increase in advertising and other consumer-influence expenses
related to these launches. We're continuing our efforts to keep driving costs
down, increasing the flexibility of operations, and improving the quality of
our products and services."
"Production start-ups in 1996 for our new models ran according to plan and
were much better than those in 1994 and 1995. We have more new cars and
trucks going into the market now than any time in the last 15 years," Smith
explained. "In fact, about 20 percent of the 1997 production will be for the
new models launched in 1996. Those new cars and trucks are key to our plans
to aggressively increase market share in the United States this year."
GM vehicle deliveries in the United States in the fourth quarter of 1996
totaled 1,085,000 units, which resulted in a 30.2-percent share of the U.S.
vehicle market, compared with a 33.5-percent market share in the fourth
quarter of 1995. For calendar-year 1996, U.S. deliveries of GM vehicles
totaled 4,793,000 units for a market share of 31.0 percent compared with
a 32.4-percent market share in 1995. (See additional information in
"Highlights.")
"Delphi Automotive Systems continues to aggressively grow its non-GM-NAO
vehicle-group business throughout the world and increased its percentage of
non-GM-NAO vehicle-group sales from 30 percent in 1995 to more than 35 percent
in 1996," Smith said.
"Delphi continues to move into new markets to serve its customers
worldwide with a strong focus on improving cost, quality and sales growth,"
Smith said. "In 1996, Delphi undertook 20 new business initiatives, including
10 joint ventures, four all-new operations, and six acquisitions."
GM INTERNATIONAL OPERATIONS (GMIO)
GM International Operations reported net income of $353 million for the
fourth quarter of 1996, compared with net income of $498 million in the same
period in 1995.
GMIO reported pretax income of $319 million in the fourth quarter of 1996,
which represented an increase of $209 million compared with pretax income of
$110 million in 1995.
Net income for calendar-year-1996 totaled $1.5 billion compared with 1995
net income of $1.6 billion. Pretax income of $1.8 billion for calendar-year
1996 exceeded 1995's results, which totaled $1.6 billion. (See "Highlights"
for additional details.)
"The higher pretax income in the fourth quarter of 1996 was primarily the
result of increased volume, and favorable year-over-year currency exchange,"
Smith said. "Net income reflects a substantially larger tax benefit in 1995
versus 1996, and unusually high equity income in 1995 from nonrecurring asset
sales at Isuzu."
The net-profit margin for GMIO was 4.0 percent in the fourth quarter of
1996, compared with 5.9 percent in the prior-year period. GMIO's net-profit
margin was 4.3 percent for calendar year 1996, compared with 5.1 percent in
1995.
GM's automotive operations in Europe reported net income of $99 million in
the fourth quarter of 1996, compared with net income of $248 million in the
same period of 1995. For calendar-year 1996, GM's European automotive
operations reported net income of $778 million, compared with $796 million in
1995.
For the remainder of GM's International Operations, which include the
Latin American and Asian and Pacific Operations, net income totaled
$254 million in the fourth quarter of 1996, compared with $250 million in the
prior-year period. Net income for calendar-year 1996 totaled $754 million,
compared with net income of $848 million in 1995.
Volume totaling 714,000 unit deliveries in the fourth quarter of 1996
resulted in a 8.5-percent market share, compared with fourth-quarter-1995
deliveries of 719,000 units and a market share of 9.3 percent. GMIO's vehicle
deliveries for calendar year 1996 totaled 3,118,000 units and resulted in a
9.0-percent market share compared with a 9.1-percent market share in 1995.
Deliveries during 1996 hit an all-time record, marking the first time GMIO
annual deliveries exceeded three million units.
"GM is targeting the fastest-growing world markets with cars and trucks
that meet the needs of specific consumer segments, while leveraging common
parts and processes," Smith said. "We have embarked on the largest
international production-capacity expansion in our history with major new
manufacturing and assembly facilities planned for key international regions.
Those facilities will provide us with significant opportunities to leverage
GM's global resources and enhance our competitive position throughout the
world."
During 1996, GM started production at its assembly facility in Russia and
continued work on new manufacturing and assembly plants in Argentina, China,
Poland and Thailand.
SPECIAL ITEMS
During the 1996 fourth quarter, GM-NAO/Delphi recorded a net favorable
plant-closings-reserve adjustment of $318 million pretax ($197 million after
taxes, or $0.26 per share). This was primarily caused by revised estimates of
costs to be incurred in connection with plant closings, in light of changes in
redeployment and other assumptions, including those resulting from the 1996
settlements with the United Auto Workers Union (UAW) and Canadian Auto Workers
Union.
The 1996 GM-NAO/Delphi fourth-quarter results also reflect a pretax loss
of $253 million ($157 million after taxes, or $0.21 per share) in connection
with the sale of four Delphi component facilities, located in Flint and
Livonia, Mich., and Oshawa and Windsor, Canada, and GM-NAO's Oshawa die-
management business to Peregrine Inc.
The 1996-fourth-quarter results of GM-NAO/Delphi also include a
$105-million pretax gain ($65 million after taxes, or $0.09 per share) on the
sale of GM's preferred-stock interest in Avis Inc. to HFS Inc.
Retiree-benefit increases associated with the new UAW labor agreement
include lump-sum payments that resulted in a charge against GM-NAO/Delphi's
1996-fourth-quarter pretax earnings of approximately $270 million
($167 million after taxes, or $0.22 per share).
Prior-year unusual items included the reversal of interest-expense
accruals related to certain prior-year tax issues, which had a favorable
impact on 1995-fourth-quarter earnings of $401 million pretax ($249 million
after taxes, or $0.33 per share). Additionally, temporary layoffs at certain
GM-NAO/Delphi facilities resulted in 1995-fourth-quarter pretax costs totaling
$183 million ($114 million after taxes, or $0.15 per share). The corporation
also increased certain reserves at GM-NAO/Delphi by $163 million pretax
($101 million after taxes, or $0.13 per share) during the 1995 fourth quarter
to reflect the significant decline in interest rates during 1995.
PROFIT SHARING
As a result of the profits generated in 1996 by GM's operations in the
United States, profit-sharing payments will be made in 1997 to approximately
282,000 of GM's represented employees in the United States. Each full-time
represented employee who worked the entire year should receive approximately
$300. This is the third consecutive year that profit-sharing payments have
been made to U.S. employees. Profits generated in 1995 resulted in a profit-
sharing payout of approximately $800. In addition, approximately 76,000
eligible salaried employees will receive 1996 incentive payments under a
salaried program, with payments generally increasing with the level of pay and
responsibility.
HIGHLIGHTS - Q4 Financial Results
(Dollars in Millions Except
Per Share Amounts) Three Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Net sales and revenues
Manufactured products $35,925 $36,849
Financial services 3,191 3,069
Other income 1,832 1,433
-------- --------
Total $40,948 $41,351
======== ========
Gross profit margin percentage(1) 13.6% 14.2%
.....................................................
Income from continuing
operations before
income taxes(1) $240 $1,267
Effective income (benefit)
tax rate(1,2) (109.2%) 2.7%
.....................................................
Income from continuing
operations(3) $786 $1,597
Income from discontinued
operations - 269
-------- --------
Consolidated net income $786 $1,866
======== ========
Net profit margin on income
from continuing operations(1) 2.2% 4.3%
.....................................................
Earnings attributable to common stocks
$1-2/3 par value(4) $696 $1,500
Class E $ - $244
Class H $ 70 $71
.....................................................
Earnings per share attributable to common stocks
$1-2/3 par value(3,4) $0.92 $1.98
Class E $ - $0.56
Class H $0.70 $0.74
.....................................................
Cash dividends per share of common stocks
$1-2/3 par value $0.40 $0.30
Class E $ - $0.13
Class H $0.24 $0.23
.....................................................
Book value per share of common stocks
December 31,
----------------------
1996 1995
--------- ----------
$1-2/3 par value $27.95 $24.37
Class E $ - $ 3.11
Class H $13.97 $12.20
....................................................
See footnotes.
HIGHLIGHTS - Q4 Sector Financial Results
(Dollars in Millions)
Three Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Major business sector results
GM-NAO/Delphi:
Net sales and revenues $24,387 $26,220
====== ======
Pre-tax (loss) income $(418) $656
Income tax (benefit) expense (279) 81
Equity income 15 28
------ ------
GM-NAO/Delphi net (loss)
income $(124) $603
------ ------
GMIO:
Net sales and revenues $8,893 $8,408
====== ======
Pre-tax income $319 $110
Income tax benefit (37) (319)
Equity (loss) income (3) 69
------ ------
GMIO net income (5) $353 $498
------ ------
GMAC net income $274 $263
Hughes earnings 281 295
Other(6) 2 (62)
------ ------
Income from continuing
operations 786 1,597
Income from discontinued
operations - 269
------ ------
Consolidated net income $786 $1,866
====== ======
.....................................................
See footnotes.
HIGHLIGHTS - Q4 Special and Unusual Items
(Dollars in Millions Except
Per Share Amounts)
Three Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Special and Unusual Items Analysis
Income from continuing
operations $786 $1,597
------ ------
Special and unusual items
Work stoppages(7) (700) -
Plant closings reserve
adjustment(8) 197 -
Sale of facilities(9) (157) -
Sale of preferred stock
interest(10) 65 -
Retiree lump sum payments(11) (167) -
Interest on taxes(12) - 249
Costs associated with
temporary layoffs (13) - (114)
Discount rate change (14) - (101)
------ ------
Total special and unusual
items (762) 34
------ ------
Income from continuing operations
-excluding special and
unusual items $1,548 $1,563
====== ======
.....................................................
$1-2/3 EPS Impact of Special and Unusual Items
Attributable to continuing
operations(4) $0.92 $1.95
------ ------
Special and unusual items
Work stoppages(7) (0.91) -
Plant closings reserve
adjustment(8) 0.26 -
Sale of facilities(9) (0.21) -
Sale of preferred stock
interest(10) 0.09 -
Retiree lump sum payments(11) (0.22) -
Interest on taxes (12) - 0.33
Costs associated with
temporary layoffs (13) - (0.15)
Discount rate change (14) - (0.13)
----- ------
Total special and unusual
items (0.99) 0.05
----- ------
Attributable to continuing
operations - excluding
special and unusual items $1.91 $1.90
===== ======
...................................................
See footnotes.
HIGHLIGHTS - Q4 Operating Information
Three Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Worldwide wholesale sales (units in 000s)
United States: Cars 581 763
Trucks 504 515
------ ------
Total United States 1,085 1,278
Canada and Mexico 122 84
------ ------
Total North America 1,207 1,362
International 779 775
------ ------
Total Worldwide 1,986 2,137
====== ======
....................................................
Unit deliveries (units in 000s)
United States
Chevrolet - Cars 188 261
- Trucks 370 359
Pontiac 129 142
GMC 118 114
Buick 93 115
Oldsmobile 75 89
Saturn 62 69
Cadillac 45 51
Other 5 5
------ ------
Total United States 1,085 1,205
Canada and Mexico 124 95
------ ------
Total North America 1,209 1,300
------ ------
International
Europe 393 384
Latin America, Africa and
the Middle East (LAAMO) 187 174
Asian and Pacific 134 161
------ ------
Total International 714 719
------ ------
Total Worldwide 1,923 2,019
====== ======
....................................................
Market share
United States
Cars 31.2% 36.1%
Trucks 29.1% 30.3%
Total 30.2% 33.5%
Western Europe 14.8% 15.6%
Latin America 17.3% 19.3%
Asian and Pacific 4.0% 4.0%
....................................................
U.S. retail/fleet mix
% Fleet sales - Cars 22.3% 25.3%
% Fleet sales - Trucks 11.3% 10.9%
Total vehicles 17.2% 19.5%
....................................................
Days supply of inventory -- U.S.
Gross landed stock
Cars 93 103
Trucks 97 81
....................................................
Capacity utilization %
U.S. and Canada (2-shift rated) 79.9% 85.2%
....................................................
Retail incentives (15) ($ per unit)
GM-NAO $739 $518
GM Europe $580 $326
....................................................
See footnotes.
HIGHLIGHTS - Q4 Operating Information
(Dollars in Millions Three Months Ended
Except Per Share Amounts) December 31,
----------------------
1996 1995
--------- ----------
Depreciation and Amortization(1)
Depreciation $1,084 $874
Amortization of special tools 579 804
Amortization of intangible
assets 47 58
----- -----
$1,710 $1,736
===== =====
....................................................
Worldwide employment at December 31 (in 000s)
GM-NAO/Delphi 424 434
GMIO 111 103
GMAC 17 17
Hughes 86 84
Other 9 11
--- ---
Employees associated with
continuing operations 647 649
=== ===
....................................................
Worldwide payrolls - continuing operations
($ millions) $7,234 $7,512
....................................................
Footnotes
(1) Calculated with financing and insurance operations on an
equity basis.
(2) The income-tax benefit in the fourth quarter of 1996, which
totaled $262 million, was primarily due to research and
experimentation credits in the U.S., as well as certain
international tax benefits and tax benefits relating to the
favorable resolution of certain tax contingencies at Hughes.
The fourth quarter 1995 effective income tax rate reflected
the resolution of numerous tax issues worldwide, efficient
utilization of a net-operating loss carryback, and tax
benefits associated with the mix of foreign earnings and
foreign income taxes.
(3) See Special and Unusual Items Analysis.
(4) $1-2/3 par value includes: Three Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Earnings attributable to:
Continuing operations $696 $1,475
Discontinued operations - 25
------- -------
Net earnings $696 $1,500
======= =======
Earnings per share attributable to:
Continuing operations $0.92 $1.95
Discontinued operations - 0.03
------- -------
Net earnings per share $0.92 $1.98
======= =======
(5) GMIO includes: Three Months Ended
December 31,
----------------------
1996 1995
--------- ----------
GM Europe $99 $248
Other GMIO $254 $250
(6) Includes Allison Transmission Division, GM Locomotive Group,
and purchase accounting adjustments, as well as certain tax
and foreign exchange items not allocated to any one business
sector.
(7) Fourth-quarter 1996 results include an unfavorable impact of
approximately $700 million after taxes, or $0.91 per share,
due to strike-related work stoppages in the U.S. and Canada.
(8) During the 1996 fourth quarter, GM-NAO/Delphi recorded a net
favorable plant-closings reserve adjustment of $197 million
after taxes, or $0.26 per share, which primarily resulted
from revised estimates of costs to be incurred in connection
with plant closings, in light of changes in redeployment and
other assumptions, including those relating to 1996
settlements with the UAW and CAW.
(9) Fourth quarter 1996 results for GM-NAO/Delphi reflect a loss
of $157 million after taxes, or $0.21 per share, in
connection with the sale of four Delphi component
facilities, located in Flint and Livonia, Mich., and Oshawa
and Windsor, Canada, and GM-NAO's Oshawa die-management
business.
(10) GM-NAO/Delphi's 1996 fourth quarter results also
include a gain of $65 million after taxes, or $0.09 per
share, on the sale of GM's preferred-stock interest in Avis,
Inc.
(11) Retiree benefit increases associated with the new UAW labor
agreement include lump-sum payments that resulted in a
charge against GM-NAO/Delphi's 1996-fourth-quarter earnings
of approximately $167 million after taxes, or $0.22 per
share.
(12) The reversal of interest expense accruals related to certain
prior year tax issues had a favorable impact on 1995 fourth
quarter earnings of $249 million after tax, or $0.33 per
share.
(13) During the fourth quarter of 1995, temporary layoffs
at certain GM-NAO/Delphi facilities resulted in costs
totaling $114 million after-tax, or $0.15 per share.
(14) Certain reserves at GM-NAO/Delphi were increased by
$101 million after taxes, or $0.13 per share, during the
1995 fourth quarter to reflect the significant decline in
interest rates during 1995.
(15) Amounts reported for 1995 have been restated to
reflect the methodology used to calculate Retail Incentives
for the 1996 period.
HIGHLIGHTS - 12 Months Financial Results
(Dollars in Millions Except
Per Share Amounts) Twelve Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Net sales and revenues
Manufactured products $145,341 $143,666
Financial services 12,674 11,664
Other income 6,054 4,942
--------- ---------
Total $164,069 $160,272
========= =========
Gross profit margin percentage(1) 14.8% 15.6%
.....................................................
Income from continuing
operations before
income taxes(1) $4,469 $6,284
Effective income tax rate(1) 19.8% 24.9%
.....................................................
Income from continuing
operations before cumulative
effect of accounting change(2)$4,953 $6,033
Income from discontinued
operations 10 900
Cumulative effect of
accounting change(3) - (52)
------- -------
Consolidated net income $4,963 $6,881
======= =======
Net profit margin on
continuing operations(1) 3.4% 4.2%
.....................................................
Earnings attributable to common stocks
$1-2/3 par value(4) $4,584 $5,457
Class E $15 $795
Class H $283 $265
.....................................................
Earnings per share attributable to common stocks
$1-2/3 par value(2,4) $6.06 $7.21
Class E $0.04 $1.96
Class H $2.88 $2.77
.....................................................
Cash dividends per share of common stocks
$1-2/3 par value $1.60 $1.10
Class E $0.30 $0.52
Class H $0.96 $0.92
.....................................................
See footnotes.
HIGHLIGHTS - 12 Months Sector Financial Results
(Dollars in Millions) Twelve Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Major business sector results
GM-NAO/Delphi:
Net sales and revenues $101,002 $103,253
======= =======
Pre-tax income $1,206 $3,346
Income tax expense 44 962
Equity income 84 64
Cum. effect of acct. change - (52)
------- -------
GM-NAO/Delphi net income $1,246 $2,396
------- -------
GMIO:
Net sales and revenues $35,251 $32,112
======= =======
Pre-tax income $1,787 $1,601
Income tax expense 307 162
Equity income 52 205
------- -------
GMIO net income (5) $1,532 $1,644
------- -------
GMAC net income $1,240 $1,031
Hughes earnings 1,151 1,108
Other (6) (216) (198)
------- -------
Income before discontinued
operations $4,953 $5,981
Income from discontinued
operations 10 900
------- -------
Consolidated net income $4,963 $6,881
======= =======
See footnotes.
HIGHLIGHTS - 12 Months Special and Unusual Items
(Dollars in Millions Except
Per Share Amounts)
Twelve Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Special and Unusual Items Analysis
Income from continuing
operations $4,953 $6,033
------ ------
Special and unusual items
Work stoppages(7) (1,201) -
Plant closings reserve
adjustments(8) 450 -
Sale of facilities(9) (157) -
Sale of 2.5% of DIRECTV (10) 72 -
Sale of preferred stock
interest(11) 65 -
Retiree lump sum payments(12) (167) -
Interest on taxes(13) - 249
Sale of NCRS (14) - 163
Costs associated with
temporary layoffs (15) - (114)
Discount rate change (16) - (101)
Preference stock buyback (17) - (14)
------ ------
Total special and unusual
items (938) 183
------ ------
Income from continuing operations
-excluding special and
unusual items $5,891 $5,850
====== ======
.....................................................
$1-2/3 EPS Impact of Special and Unusual Items
Attributable to continuing
operations(4) $6.07 $7.14
----- -----
Special and unusual items
Work stoppages(7) (1.56) -
Plant closings reserve
adjustments(8) 0.60 -
Sale of facilities(9) (0.21) -
Sale of 2.5% of DIRECTV (10) 0.07 -
Sale of preferred stock
interest(11) 0.09 -
Retiree lump sum payments(12) (0.22) -
Interest on taxes (13) - 0.33
Sale of NCRS (14) - 0.22
Costs associated with
temporary layoffs (15) - (0.15)
Discount rate change (16) - (0.13)
Preference stock buyback (17) - (0.22)
----- ------
Total special and unusual
items (1.23) 0.05
----- ------
Attributable to continuing
operations - excluding
special and unusual items $7.30 $7.09
===== ======
.....................................................
See footnotes.
HIGHLIGHTS - 12 Months Operating Information
Twelve Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Worldwide wholesale sales (units in 000s)
United States: Cars 2,647 3,112
Trucks 2,026 2,030
------ ------
Total United States 4,673 5,142
Canada and Mexico 479 418
------ ------
Total North America 5,152 5,560
International 3,111 3,007
------ ------
Total Worldwide 8,263 8,567
====== ======
....................................................
Unit deliveries (units in 000s)
United States
Chevrolet - Cars 1,046 1,054
- Trucks 1,497 1,429
Pontiac 551 599
GMC 464 462
Buick 427 472
Oldsmobile 331 387
Saturn 279 286
Cadillac 170 180
Other 28 26
------ ------
Total United States 4,793 4,895
Canada and Mexico 470 433
------ ------
Total North America 5,263 5,328
------ ------
International
Europe 1,798 1,725
Latin America, Africa and
the Middle East (LAAMO) 691 648
Asian and Pacific 629 619
------ ------
Total International 3,118 2,992
------ ------
Total Worldwide 8,381 8,320
====== ======
....................................................
Market Share
United States
Cars 32.7% 34.2%
Trucks 29.0% 29.9%
Total 31.0% 32.4%
Western Europe 11.7% 12.2%
Latin America 19.2% 17.9%
Asian and Pacific 4.6% 4.7%
....................................................
U.S. retail/fleet mix
% Fleet sales - Cars 25.0% 23.3%
% Fleet sales - Trucks 10.9% 12.4%
Total vehicles 19.1% 19.0%
....................................................
Capacity utilization %
U.S. and Canada (2-shift rated) 82.4% 86.9%
....................................................
GM-NAO retail incentives (18) ($ per unit)
GM-NAO $700 $522
GM Europe $529 $505
....................................................
See footnotes.
HIGHLIGHTS - 12 Months Operating Information - Concluded
(Dollars in Millions
Except Per Share Amounts) Twelve Months Ended
December 31,
----------------------
1996 1995
---------- ----------
....................................................
Depreciation and Amortization(1)
Depreciation $4,139 $3,404
Amortization of special tools 2,856 3,212
Amortization of intangible
assets 150 171
------- -------
$7,145 $6,787
======= =======
....................................................
Worldwide payrolls -
continuing operations
($ millions) $29,697 $29,840
....................................................
Footnotes
(1) Calculated with financing and insurance operations on an
equity basis.
(2) See Special and Unusual Items Analysis.
(3) In November 1995, the Corporation adopted, retroactive to
January 1, 1995, the consensus of EITF Issue No. 95-1. The
unfavorable effect of adopting EITF Issue No. 95-1 on GM-
NAO/Delphi was $52 million after-tax or $0.07 per share of
$1-2/3 par value common stock.
(4) $1-2/3 par value includes: Twelve Months Ended
December 31,
----------------------
1996 1995
--------- ----------
Earnings attributable to:
Continuing operations $4,589 $5,404
Discontinued operations (5) 105
Cumulative effect of
accounting change - (52)
------- -------
Net earnings $4,584 $5,457
======= =======
Earnings per share attributable to:
Continuing operations $6.07 $7.14
Discontinued operations (0.01) 0.14
Cumulative effect of
accounting change - (0.07)
------- -------
Net earnings per share $6.06 $7.21
======= =======
(5) GMIO Includes: Twelve Months Ended
December 31,
-------------------
1996 1995
---- ----
GM Europe $778 $796
Other GMIO $754 $848
(6) Includes Allison Transmission Division, GM Locomotive Group,
and purchase accounting adjustments, as well as certain tax
and foreign exchange items not allocated to any one business
sector.
(7) Work stoppages in the United States and Canada reduced
calendar-year earnings on an after-tax basis by
approximately $1.2 billion, or $1.56 per share, after
considering partial recovery of production losses from the
work stoppages.
(8) Plant closings reserve adjustments in 1996 increased
calendar year earnings by $450 million after taxes, or $0.60
per share. The adjustments included $253 million after
taxes, or $0.34 per share, associated with GM's decision to
utilize its Wilmington, DE facility for the assembly of a
new generation Saturn vehicle, and $197 million, or $0.26
per share, which primarily resulted from revised estimates
of costs to be incurred in connection with plant closings,
in light of changes in redeployment and other assumptions,
including those resulting from the 1996 settlements with the
UAW and CAW.
(9) Calendar year 1996 results for GM-NAO/Delphi reflect a loss
of $157 million after taxes, or $0.21 per share, in
connection with the sale of four Delphi component
facilities, located in Flint and Livonia, Mich., and Oshawa
and Windsor, Canada, and GM-NAO's Oshawa die-management
business.
(10) The 1996 earnings include a $72 million after tax gain, or
$0.07 per share, on the sale of 2.5% of DIRECTV to AT&T.
(11) GM-NAO/Delphi's 1996 results also include a gain of
$65 million after taxes, or $0.09 per share, on the sale of
GM's preferred-stock interest in Avis, Inc.
(12) Retiree benefit increases associated with the new UAW labor
agreement include lump-sum payments that resulted in a
charge against GM-NAO/Delphi's 1996-earnings of
approximately $167 million after taxes, or $0.22 per share.
(13) The reversal of interest expense accruals related to certain
prior year tax issues had a favorable impact on 1995
earnings of $249 million after taxes, or $0.33 per share.
(14) The sale of the net assets of NCRS during 1995 had a
favorable impact of $163 million after taxes, or $0.22 per
share.
(15) During 1995, temporary layoffs at certain GM-
NAO/Delphi facilities resulted in costs totaling
$114 million after taxes, or $0.15 per share.
(16) Certain reserves at GM-NAO/Delphi were increased in
1995 by $101 million after taxes, or $0.13 per share, to
reflect the significant decline in interest rates.
(17) The buyback of Series B, D and G preference shares
resulted in an unfavorable impact of $14 million after
taxes, or $0.22 per share.
(18) Amounts reported for 1995 have been restated to
reflect the methodology used to calculate Retail Incentives
for 1996.
SOURCE General Motors Corporation
CONTACT: Mark A. Tanner, 313-556-2019, or Toni Simonetti, 212-418-6380, both
of General Motors