GM achieves third consecutive quarter of profitability and positive cash
flow
Net income of $2.0 billion, earnings per share of $1.20
</pre>
<p><span class="xn-location">DETROIT</span>, <span class="xn-chron">Nov. 10, 2010</span> /CNW/ -- General Motors Company today announced that for the third quarter ending <span class="xn-chron">September 30, 2010</span>, the company generated:</p>
<pre>
-- Revenue of $34.1 billion
-- Net income attributable to common stockholders of $2.0 billion
-- Earnings per share on a fully diluted basis and adjusted for 3-1 stock
split of $1.20
-- Earnings before interest and tax (EBIT) of $2.3 billion
-- Net cash flow from operating activities of $2.6 billion
-- Free cash flow of $1.4 billion
</pre>
<p>"As demonstrated by our third consecutive quarter of profitability and positive cash flow, these results continue our significant progress," said <span class="xn-person">Chris Liddell</span>, vice chairman and chief financial officer.</p>
<p/>
<p>GM <span class="xn-location">North America</span> had EBIT in the third quarter 2010 of <span class="xn-money">$2.1 billion</span>, up from <span class="xn-money">$1.6 billion</span> in the second quarter. GM <span class="xn-location">Europe</span> had a loss before interest and taxes of <span class="xn-money">$0.6 billion</span>, down from a loss of <span class="xn-money">$0.2 billion</span> in the second quarter. GM International Operations posted EBIT of <span class="xn-money">$0.6 billion</span>, down from <span class="xn-money">$0.7 billion</span> in the second quarter.</p>
<p/>
<p>Net cash flow from operating activities was <span class="xn-money">$2.6 billion</span> and after adjusting for capital expenditures of <span class="xn-money">$1.2 billion</span>, free cash flow was <span class="xn-money">$1.4 billion</span>.</p>
<p/>
<p>GM expects to also report positive EBIT for the fourth quarter, albeit at a significantly lower run rate than each of the first three quarters, and profitable year-end results for calendar year 2010.</p>
<pre>
About General Motors
</pre>
<p>General Motors, one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in <span class="xn-location">Detroit</span>, GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is <span class="xn-location">China</span>, followed by the <span class="xn-location">United States</span>, <span class="xn-location">Brazil</span>, <span class="xn-location">Germany</span>, the <span class="xn-location">United Kingdom</span>, <span class="xn-location">Canada</span>, and <span class="xn-location">Italy</span>. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors acquired operations from General Motors Corporation on <span class="xn-chron">July 10, 2009</span>, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation. More information on the new General Motors can be found at <a href="http://www.gm.com">www.gm.com</a>.</p>
<pre>
Forward-Looking Statements
</pre>
<p>In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planning significant investment in new technology; our ability to realize successful vehicle applications of new technology; and our ability to continue to attract new customers, particularly for our new products.</p>
<p/>
<p>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.</p>
<p/>
<p> </p>
<p> Exhibit 1</p>
<p> </p>
<pre>
General Motors Company and Subsidiaries
Supplemental Material
</pre>
<p> </p>
<p> (Unaudited)</p>
<p> </p>
<pre>
The accompanying tables and charts for securities analysts include
earnings 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.
</pre>
<p> </p>
<pre>
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.
</pre>
<p> </p>
<pre>
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 or Net income attributable to common stockholders. Due to
these limitations, these non-GAAP financial measures are used as a
supplement to U.S. GAAP measures.
</pre>
<p> </p>
<pre>
The following table summarizes the reconciliation of EBIT to its most
comparable U.S. GAAP measure (dollars in millions):
</pre>
<p> </p>
<p> </p>
<pre>
Successor
Three Three
Three Months Nine Months Months Months
Ended Ended Ended Ended
September 30, September June 30, March 31,
2010 30, 2010 2010 2010
-------------- --------- --------- ----------
Operating
segments
GMNA(a) $2,125 $4,935 $1,592 $1,218
GME(a)(b) (559) (1,196) (160) (477)
GMIO(a)(b) 646 2,484 672 1,166
--- ----- --- -----
Total operating
segments 2,212 6,223 2,104 1,907
Corporate and
eliminations(b) 63 (91) (71) (83)
--- --- --- ---
EBIT 2,275 6,132 2,033 1,824
Interest income 125 329 114 90
Interest
expense 263 850 250 337
Income tax
expense
(benefit) (25) 845 361 509
--- --- --- ---
Net income
attributable
to
stockholders 2,162 4,766 1,536 1,068
Less:
Cumulative
dividends on
preferred
stock 203 608 202 203
--- --- --- ---
Net income
attributable
to common $1,959 $4,158 $1,334 $865
stockholders ====== ====== ====== ====
</pre>
<p> </p>
<pre>
(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 attributable to stockholders.
(b) In the three months ended June 30, 2010 GM changed its managerial
reporting structure so that certain entities geographically located
within Russia and Uzbekistan were transferred from GM's GME segment
to GM's GMIO segment. GM has revised the segment presentation for
all periods presented.
</pre>
<p> </p>
<pre>
Note: A three-for-one stock split was approved by GM's stockholders
and effected on November 1, 2010. All applicable Successor share,
per share and related information on or subsequent to July 10, 2009
has been adjusted retroactively to give the effect of the three-
for-one split. Additionally, GM's stockholders approved amendments
to its Certificate of Incorporation on November 1, 2010 to increase
the number of shares of common stock that GM is authorized to issue
from 2,500,000,000 shares to 5,000,000,000 shares and to increase
the number of preferred shares that GM is authorized to issue from
1,000,000,000 shares to 2,000,000,000 shares.
</pre>
<p> </p>
<pre>
General Motors Company and Subsidiaries
Supplemental Material
</pre>
<p> </p>
<p> (Unaudited)</p>
<p> </p>
<pre>
The following tables summarize the reconciliation of adjusted EBIT to
EBIT and free cash
flow to Net cash provided by operating activities (dollars in millions):
</pre>
<p> </p>
<pre>
Successor
---------
Nine Three Three
Three Months Months Months Months
Ended Ended Ended Ended
September
September 30, 30, June 30, March 31,
2010 2010(a) 2010 2010(a)
-------------- ---------- --------- ----------
Adjusted EBIT $2,275 $6,009 $2,033 $1,701
Adjustments - 123 - 123
--- --- --- ---
EBIT $2,275 $6,132 $2,033 $1,824
====== ====== ====== ======
</pre>
<p> </p>
<pre>
Free Cash Flow(b) $1,363 $5,207 $2,834 $1,010
Capital
expenditures(b) 1,261 3,112 1,011 840
----- ----- ----- ---
Net cash provided by
(used in) operating
activities(b) $2,624 $8,319 $3,845 $1,850
====== ====== ====== ======
</pre>
<p> </p>
<pre>
(a) In the three months ended March 31, 2010 Adjustments included a
gain of $123 million as a result of the sale of Saab Automobile AB
to Spyker Cars NV.
(b) In the three months ended June 30, 2010 GM identified several
items which had not been properly classified in GM's condensed
consolidated statement of cash flows for the three months ended
March 31, 2010. For the nine months ended September 30, 2010, GM has
correctly presented these items in GM's condensed consolidated
statement of cash flows and corrected the amounts presented for the
three months ended March 31, 2010.
</pre>
<p> </p>
<pre>
General Motors Company and Subsidiaries
Supplemental Material
</pre>
<p> </p>
<p> (Unaudited)</p>
<p> </p>
<pre>
Successor
---------
Combined GM and
Old GM
----------------
Three Nine Three Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 30, 30, 30,
2010 2010 2009 2009
---------- ---------- ---------- ----------
Production Volume
(units in
thousands)(a)
GMNA - Cars 215 737 206 493
GMNA - Trucks 492 1,369 325 805
--- ----- --- ---
Total GMNA 707 2,106 531 1,298
GME 286 921 272 851
GMIO(b)(c) 1,111 3,418 910 2,433
----- ----- --- -----
Total Worldwide 2,104 6,445 1,713 4,582
===== ===== ===== =====
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
(a) Production volume represents the number of vehicles manufactured
by GM and Old GM's assembly facilities and also includes vehicles
produced by certain joint ventures.
(b) Includes SGM joint venture production in China of 246,000
vehicles and 735,000 vehicles and SGMW, FAW-GM joint venture
production in China and SAIC GM Investment Ltd. (HKJV) joint venture
production in India of 321,000 vehicles and 1.1 million vehicles in
the three and nine months ended September 30, 2010 and combined GM
and Old GM SGM joint venture production in China of 191,000 vehicles
and 473,000 vehicles and combined GM and Old GM SGMW and FAW-GM
joint venture production in China of 290,000 vehicles and 817,000
vehicles in the three and nine months ended September 30, 2009.
(c) The joint venture agreements with SGMW (34%) and FAW-GM (50%)
allow for significant rights as a member as well as the contractual
right to report SGMW and FAW-GM joint venture production in China.
</pre>
<p> </p>
<pre>
General Motors Company and Subsidiaries
Supplemental Material
</pre>
<p> </p>
<p> (Unaudited)</p>
<p> </p>
<pre>
Combined GM and Old
Successor GM
--------- -------------------
Three Nine Three Nine
Months Months Months Months
Ended Ended Ended Ended
September
30, September September September
2010 30, 2010 30, 2009 30, 2009
---------- ---------- ---------- ----------
Vehicle Sales (units
in
thousands)(a)(b)(c)(d)
United States
Chevrolet - Cars 154 503 172 413
Chevrolet - Trucks 239 673 223 579
Cadillac 40 105 24 73
Buick 44 114 25 72
GMC 80 232 63 182
Other 1 12 84 227
--- --- --- ---
Total United States 558 1,639 593 1,547
Canada, Mexico and
Other 103 302 98 301
--- --- --- ---
Total GMNA(e) 661 1,941 690 1,847
--- ----- --- -----
GME
Opel/Vauxhall 272 881 299 944
Chevrolet 118 351 103 320
Other 1 6 6 26
--- --- --- ---
Total GME(f) 391 1,238 409 1,290
--- ----- --- -----
GMIO
Chevrolet 483 1,383 393 1,065
Buick 147 402 117 313
GM Daewoo 30 90 33 80
Holden 34 107 31 91
Wuling 272 909 262 754
FAW-GM 17 67 9 9
GMC 8 25 10 27
Cadillac 6 16 3 8
Other 15 43 14 43
--- --- --- ---
Total GMIO(f)(g)(h) 1,014 3,041 872 2,389
----- ----- --- -----
Total Worldwide(f) 2,065 6,220 1,972 5,526
===== ===== ===== =====
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
(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) Certain fleet sales that are accounted for as operating leases
are included in vehicle sales at the time of delivery to the daily
rental car companies.
(e) Vehicle sales primarily represent sales to the ultimate customer.
(f) Vehicle sales primarily represent estimated sales to the ultimate
customer.
(g) Includes SGM joint venture vehicle sales in China of 262,000
vehicles and 713,000 vehicles and SGMW, FAW-GM joint venture
vehicle sales in China and HKJV joint venture vehicle sales in India
of 313,000 vehicles and 1.0 million vehicles in the three and nine
months ended September 30, 2010 and combined GM and Old GM SGM joint
venture vehicle sales in China of 195,000 vehicles and 473,000
vehicles and combined GM and Old GM SGMW and FAW-GM joint venture
vehicle sales in China of 271,000 vehicles and 763,000 vehicles in
the three and nine months ended September 30, 2009. GM does not
record revenue from their joint ventures' vehicle sales.
(h) The joint venture agreements with SGMW (34%) and FAW-GM (50%)
allow for significant rights as a member as well as the contractual
right to report SGMW and FAW-GM joint venture vehicle sales in
China.
</pre>
<p> </p>
<pre>
General Motors Company and Subsidiaries
Supplemental Material
</pre>
<p> </p>
<p> (Unaudited)</p>
<p> </p>
<pre>
Combined GM and Old
Successor GM
--------- -------------------
Three Nine Three Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2010 30, 2010 30, 2009 30, 2009
---------- ---------- ---------- ----------
Market Share(a)(b)
United States -
Cars 13.9% 14.6% 16.5% 16.5%
United States -
Trucks 22.4% 22.6% 22.8% 22.6%
Total United
States 18.3% 18.7% 19.4% 19.5%
Total GMNA(c) 17.7% 18.1% 18.7% 18.9%
Total GME(d) 8.9% 8.7% 9.0% 9.1%
Total
GMIO(d)(e)(f) 10.3% 10.2% 10.3% 10.2%
Total Worldwide 11.5% 11.4% 11.8% 11.6%
</pre>
<p> </p>
<pre>
U.S. Retail/Fleet
Mix
% Fleet Sales -
Cars 33.4% 38.9% 29.8% 27.3%
% Fleet Sales -
Trucks 21.9% 24.8% 21.2% 22.0%
Total Vehicles 26.1% 30.2% 25.1% 24.3%
</pre>
<p> </p>
<pre>
GMNA Capacity
Utilization(g) 90.1% 89.5% 53.3% 43.4%
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
(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 joint venture vehicle sales in China of 262,000
vehicles and 713,000 vehicles and SGMW, FAW-GM joint venture
vehicle sales in China and HKJV joint venture vehicle sales in India
of 313,000 vehicles and 1.0 million vehicles in the three and nine
months ended September 30, 2010 and combined GM and Old GM SGM joint
venture vehicle sales in China of 195,000 vehicles and 473,000
vehicles and combined GM and Old GM SGMW and FAW-GM joint venture
vehicle sales in China of 271,000 vehicles and 763,000 vehicles in
the three and nine months ended September 30, 2009. GM does not
record revenue from their joint ventures' vehicle sales.
(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.
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
Successor
September 30, December 31,
2010 2009
-------------- -------------
Worldwide Employment
(thousands)
GMNA(a) 106 103
GME(b) 41 50
GMIO(c) 62 62
--- ---
Total Worldwide 209 215
=== ===
</pre>
<p> </p>
<pre>
United States - Salaried 26 26
United States - Hourly 53 51
</pre>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<pre>
(a) GM acquired AmeriCredit Corp. effective October
1, 2010, which was subsequently renamed General
Motors Financial Company, Inc. (GM Financial). At
September 30, 2010 GM Financial employed 3,000
employees in the United States and Canada. These
employees were excluded from GM amounts because the
date of acquisition was subsequent to September 30,
2010.
(b) Decrease in GME primarily relates to the sale of
Saab, employees located within Russia and
Uzbekistan transferred from GM's GME segment to
GM's GMIO segment and restructuring initiatives in
Germany, Spain, and the United Kingdom.
(c) GMIO includes a reduction of 2,400 employees due
to the sale of GM's India Operations.
</pre>
<p> </p>
<pre>
Successor Predecessor
--------- -----------
July 10, January 1,
Three Months Nine Months 2009 July 1, 2009 2009
Ended Ended Through Through Through
September September September
30, 2010 30, 2010 30, 2009 July 9, 2009 July 9, 2009
--------- --------- --------- ------------ ------------
Worldwide
Payroll
(billions) $3.2 $9.3 $2.9 $0.3 $6.2
</pre>
<p> </p>
<pre>
General Motors Company and Subsidiaries
Condensed Consolidated Statements of Operations
</pre>
<p> </p>
<pre>
(In millions, except per share amounts)
(Unaudited)
</pre>
<p> </p>
<pre>
Successor Predecessor
--------- -----------
July
Three Nine 10, July 1, January
Months Months 2009 2009 1, 2009
Ended Ended Through Through Through
September September September
30, 30, 30, July 9, July 9,
2010 2010 2009 2009 2009
---------- ---------- ---------- -------- --------
Net sales and
revenue $34,060 $98,710 $25,147 $1,637 $47,115
------- ------- ------- ------ -------
Costs and
expenses
Cost of sales 29,468 85,818 23,554 1,819 55,814
Selling,
general and
administrative
expense 2,710 8,017 2,636 728 6,161
Other expenses
(income), net 30 115 (40) 81 1,235
--- --- --- --- -----
Total costs and
expenses 32,208 93,950 26,150 2,628 63,210
------ ------ ------ ----- ------
Operating
income (loss) 1,852 4,760 (1,003) (991) (16,095)
Equity in
income of and
disposition of
interest in - - - - 1,380
Ally Financial
Interest
expense (263) (850) (365) (823) (5,428)
Interest income
and other non-
operating
income, net 258 802 454 19 852
Loss on
extinguishment
of debt - (1) - - (1,088)
Reorganization
gains, net - - - 129,312 128,155
--- --- --- ------- -------
Income (loss)
before income
taxes and
equity 1,847 4,711 (914) 127,517 107,776
income
Income tax
expense
(benefit) (25) 845 (139) (607) (1,166)
Equity income,
net of tax 351 1,165 204 15 61
--- ----- --- --- ---
Net income
(loss) 2,223 5,031 (571) 128,139 109,003
Less: Net
income (loss)
attributable
to 61 265 287 141 (115)
noncontrolling
interests --- --- --- --- ----
Net income
(loss)
attributable
to
stockholders 2,162 4,766 (858) 127,998 109,118
Less:
Cumulative
dividends on
preferred
stock 203 608 50 - -
--- --- --- --- ---
Net income
(loss)
attributable
to common $1,959 $4,158 $(908) $127,998 $109,118
stockholders ====== ====== ===== ======== ========
Earnings (loss)
per share
Basic
Net income
(loss)
attributable
to common $1.31 $2.77 $(0.73) $209.49 $178.63
stockholders
Weighted-
average common
shares
outstanding 1,500 1,500 1,238 611 611
Diluted
Net income
(loss)
attributable
to common $1.20 $2.62 $(0.73) $209.38 $178.55
stockholders
Weighted-
average common
shares
outstanding 1,630 1,588 1,238 611 611
</pre>
<p> </p>
<pre>
General Motors Company and Subsidiaries
Condensed Consolidated Balance Sheets
</pre>
<p> </p>
<pre>
(In millions, except share amounts)
(Unaudited)
</pre>
<p> </p>
<pre>
Successor
---------
September December
30, 31,
2010 2009
---------- ---------
ASSETS
Current Assets
Cash and cash equivalents $27,466 $22,679
Marketable securities 6,010 134
----- ---
Total cash, cash equivalents
and marketable securities 33,476 22,813
Restricted cash and
marketable securities 1,323 13,917
Accounts and notes receivable
(net of allowance of $279
and $250) 8,725 7,518
Inventories 13,044 10,107
Assets held for sale - 388
Equipment on operating
leases, net 2,942 2,727
Other current assets and
deferred income taxes 2,074 1,777
----- -----
Total current assets 61,584 59,247
Non-Current Assets
Equity in net assets of
nonconsolidated affiliates 8,691 7,936
Assets held for sale - 530
Property, net 19,116 18,687
Goodwill 30,556 30,672
Intangible assets, net 12,454 14,547
Other assets 4,837 4,676
----- -----
Total non-current assets 75,654 77,048
------ ------
Total Assets $137,238 $136,295
======== ========
</pre>
<p> </p>
<pre>
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally
trade) $22,137 $18,725
Short-term debt and current
portion of long-term debt
(including debt at GM Daewoo
of $1,072 at 5,621 10,221
September 30, 2010)
Liabilities held for sale - 355
Accrued expenses (including
derivative liabilities at GM
Daewoo of $217 at September
30, 2010) 24,811 23,134
------ ------
Total current liabilities 52,569 52,435
Non-Current Liabilities
Long-term debt (including
debt at GM Daewoo of $798 at
September 30, 2010) 2,945 5,562
Liabilities held for sale - 270
Postretirement benefits other
than pensions 8,721 8,708
Pensions 28,965 27,086
Other liabilities and
deferred income taxes 13,322 13,279
------ ------
Total non-current
liabilities 53,953 54,905
------ ------
Total Liabilities 106,522 107,340
Commitments and contingencies 6,998 6,998
Preferred stock, $0.01 par value
(2,000,000,000 shares authorized,
360,000,000 shares issued
and outstanding (each with a $25.00
liquidation preference) at
September 30, 2010 and
December 31, 2009)
Equity
Common stock, $0.01 par value
(5,000,000,000 shares
authorized, 1,500,000,000
shares issued and 15 15
outstanding at September 30, 2010
and December 31, 2009)
Capital surplus (principally
additional paid-in capital) 24,041 24,040
Accumulated deficit (236) (4,394)
Accumulated other
comprehensive income (loss) (1,073) 1,588
------ -----
Total stockholders' equity 22,747 21,249
Noncontrolling interests 971 708
--- ---
Total equity 23,718 21,957
------ ------
Total Liabilities and Equity $137,238 $136,295
======== ========
For further information: Renee Rashid-Merem, +1-313-665-3128, Cell +1-313-701-8560, [email protected]; Randy Arickx, +1-313-667-0006, Cell +1-313-268-7070, [email protected]
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