EXHIBIT 99.1
News | General Motors | GM Communications | ||
| For Release: April 30, 2008 | Corporation | Detroit, Mich., USA | ||
| 7:00 a.m. Eastern Daylight Time | media.gm.com | |||
GM Reports Preliminary First Quarter 2008 Financial Results
| • | First quarter revenue of $42.7 billion | |
| • | Positive adjusted automotive earnings before tax, with improvement of over $160 million | |
| • | Positive reported automotive earnings before tax, down by $118 million | |
| • | Adjusted net loss of $350 million, reported net loss of $3.3 billion | |
| • | Continued strong results in emerging markets | |
| • | Liquidity position of $23.9 billion |
| First Quarter | ||||||||||||
| 2008 | 2007 | ‘08 O/(U) ‘07 | ||||||||||
| Revenue (Bils.) | $ | 42.7 | $ | 43.4 | $ | (.7 | ) | |||||
| Adjusted Automotive Earnings Before Tax (Mils.)* | $ | 392 | $ | 231 | $ | 161 | ||||||
| Reported Automotive Earnings Before Tax (Mils.)* | $ | 68 | $ | 186 | $ | (118 | ) | |||||
| Adjusted Net Income (Mils.)* | $ | (350 | ) | $ | (10 | ) | $ | (340 | ) | |||
| Reported Net Income (Mils.)* | $ | (3,251 | ) | $ | (42 | ) | $ | (3,209 | ) | |||
| Reported Earnings Per Share (Dollars)* | $ | (5.74 | ) | $ | (0.07 | ) | $ | (5.67 | ) | |||
| Adjusted Operating Cash Flow (Bils.) | $ | (3.6 | ) | $ | .2 | $ | (3.8 | ) | ||||
* 2007 figures reflect continuing operations | ||||||||||||
DETROIT — General Motors Corp. (NYSE: GM) today announced financial results for the first quarter of 2008, marked by improved adjusted automotive operating performance, rapid growth in emerging markets, continued cost performance in GM North America (GMNA) operations and liquidity of nearly $24 billion, despite the impact of the American Axle strike on North American operations and weakness in the U.S. auto industry.
“We continue to leverage our global product portfolio to take advantage of tremendous growth in key emerging markets, while at the same time taking the appropriate actions to deal with the challenging economic conditions in the U.S.,” said GM Chairman and Chief Executive Officer, Rick Wagoner.
Reflecting several special items noted below, GM reported a net loss of $3.3 billion, or $5.74 per share in the first quarter of 2008, compared with a net loss from continuing operations of $42 million, or $.07 per diluted share, in the year-ago quarter.
Adjusted automotive earnings before taxes were $392 million, up $161 million despite the significant impact of the American Axle strike and weak U.S. auto industry (reported earnings declined $118 million). These positive results were driven by strong combined earnings before taxes of $1 billion in GM Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific (GMAP) and GM Europe (GME), which more than offset a loss at GMNA.
Excluding special items, GM posted an adjusted net loss of $350 million, or $.62 per diluted share in the first quarter of 2008, reflecting losses at GMAC and tax expenses. These results compare to an adjusted net loss from continuing operations of $10 million, or $0.01 per diluted share in the first quarter of 2007.
The reported results for the first quarter of 2008 include unfavorable special items totaling $2.9 billion. The charges include $1.45 billion to record a non-cash partial impairment of our equity investment in GMAC. Based on current market pricing, GM concluded that the estimated fair value of the common and preferred equity interests it holds in GMAC were approximately $1.45 billion less than GM’s carrying value.
GM also took a non-cash charge of $731 million to increase GM’s liability for estimated net costs associated with GM’s support of Delphi’s bankruptcy and restructuring efforts. This charge primarily results from updated estimates reflecting uncertainty around the nature, value and timing of GM’s recoveries. In addition, GM recorded $394 million in non-cash tax-related valuation allowances related to deferred tax assets in Europe, and $324 million in charges related to previously-announced restructuring actions in North America and Europe. Details on all of the special items are included in the “Highlights” section of this news release.
GM’s total revenue for the first quarter of 2008 was $42.7 billion, down slightly from $43.4 billion in the year-ago quarter primarily due to lower North America automotive and financial services and insurance revenues. Automotive revenues outside of North America were up over 20 percent, with strong growth in China, Brazil, Russia and India.
As reported in the fourth quarter of 2007, and reflected in the remainder of this release, GM now reports its automotive operations and regional results on an earnings-before-tax basis, with taxes reported on a total corporate basis.
GM Automotive Operations
Adjusted profits from GM’s global automotive operations improved, with first quarter 2008 earnings before tax of $392 million on an adjusted basis (reported earnings before tax of $68 million), compared to $231 million in the year-ago period (reported earnings before tax of $186 million).
GM sold 2.25 million vehicles in the first quarter of 2008, down less than one percent from 2.27 million units in the first quarter 2007, with a record 64 percent of sales outside of the United States. Unit sales outside GMNA were up 8 percent compared with the same quarter last year. Robust sales in the first quarter in GM’s GMLAAM and GMAP regions, and improved sales in the GME region helped offset a 10 percent unit decline in GMNA.
GMNA
| First Quarter | ||||||||||||
| 2008 | 2007 | ‘08 O/(U) ‘07 | ||||||||||
| Revenue (Bils.) | $ | 24.5 | $ | 28.1 | $ | (3.6 | ) | |||||
| Adjusted Earnings Before Tax (Mils.) | $ | (611 | ) | $ | (269 | ) | $ | (342 | ) | |||
| Reported Earnings Before Tax (Mils.) | $ | (812 | ) | $ | (208 | ) | $ | (604 | ) | |||
| GM Market Share | 21.7 | % | 22.5 | % | (0.8) p.p | |||||||
2
GMNA revenue for the first quarter 2008 was $24.5 billion, compared to $28.1 billion in the year-ago period. The decline in GMNA first quarter revenue was significantly impacted by the lost production due to the American Axle strike. Other factors include a softer U.S. market and planned actions to maintain lean inventories. With the industry shift toward more fuel-efficient vehicles, GM’s most recently launched passenger cars and crossovers, including the Cadillac CTS, GMC Acadia, Buick Enclave and the all-new Chevrolet Malibu continue to perform well in the marketplace.
The decline in GMNA first quarter earnings was more than accounted for by the loss of 100,000 production units resulting from the American Axle strike, which had an estimated impact to earnings of $0.8 billion. Other factors included lower volumes resulting from a softer U.S. market and lower market share, as well as shifts in product mix. Partially offsetting the declines were favorable material and structural cost performance and commodity hedging gains and foreign exchange.
GME
| First Quarter | ||||||||||||
| 2008 | 2007 | ‘08 O/(U) ‘07 | ||||||||||
| Revenue (Bils.) | $ | 9.9 | $ | 8.5 | $ | 1.4 | ||||||
| Adjusted Earnings Before Tax (Mils.) | $ | 198 | $ | 61 | $ | 137 | ||||||
| Reported Earnings Before Tax (Mils.) | $ | 75 | $ | 4 | $ | 71 | ||||||
| GM Market Share | 9.6 | % | 9.7 | % | (0.1) p.p | |||||||
GME Revenue was up 17 percent and adjusted earnings before tax improved by $137 million. GME’s improved earnings for the first quarter were driven by improved material cost performance, commodity hedging gains and reduced warranty costs, which were partially offset by negative foreign exchange and unfavorable country mix. GME had record first-quarter sales volumes of 572,000 units.
GMLAAM
| First Quarter | ||||||||||||
| 2008 | 2007 | ‘08 O/(U) ‘07 | ||||||||||
| Revenue (Bils.) | $ | 4.8 | $ | 3.6 | $ | 1.2 | ||||||
| Adjusted Earnings Before Tax (Mils.) | $ | 517 | $ | 254 | $ | 263 | ||||||
| Reported Earnings Before Tax (Mils.) | $ | 517 | $ | 254 | $ | 263 | ||||||
| GM Market Share | 17.9 | % | 16.7 | % | 1.2 p.p. | |||||||
Adjusted earnings before tax in the GMLAAM region more than doubled in the first quarter of 2008, driven by continued strong market growth and gains in GM market share in the region. GMLAAM revenue was up over 33 percent and volumes were up 20 percent, setting new first-quarter records for both unit sales and revenue. In addition, Argentina, Egypt and North Africa each set new quarterly sales records.
GMAP
| First Quarter | ||||||||||||
| 2008 | 2007 | ‘08 O/(U) ‘07 | ||||||||||
| Revenue (Bils.) | $ | 5.5 | $ | 4.6 | $ | .9 | ||||||
| Adjusted Earnings Before Tax (Mils.) | $ | 286 | $ | 192 | $ | 94 | ||||||
| Reported Earnings Before Tax (Mils.) | $ | 286 | $ | 143 | $ | 143 | ||||||
| GM Market Share | 7.0 | % | 7.2 | % | (0.2) p.p. | |||||||
3
GMAP adjusted earnings before tax increased by 49 percent, driven by strong volume and improvements in material cost performance, which were partially offset by mix and pricing deterioration and increased structural costs incurred to support growth. Revenue and earnings before tax improved significantly due to the overall volume gains, although market share was down slightly primarily due to declines in China, Australia and Korea.
GMAC
On a standalone basis, GMAC Financial Services reported a net loss of $589 million for the first quarter 2008, primarily due to significant declines in the international mortgage operation of Residential Capital, LLC (ResCap). The company’s global automotive and insurance businesses posted profits. GM reported an adjusted loss before taxes of $276 million for the quarter attributable to GMAC, as a result of its 49 percent equity interest and preferred dividends. While continued volatility in the capital and credit markets put pressure on first quarter results, GMAC continues to take actions to reduce risk, streamline its cost structure and preserve liquidity in an effort to protect franchise value.
Cash and Liquidity
Cash, marketable securities, and readily-available assets of the Voluntary Employees’ Beneficiary Association (VEBA) trust totaled $23.9 billion on March 31, 2008, down from $24.7 billion on March 31, 2007. The change in liquidity reflects adjusted negative operating cash flow of $3.6 billion in the first quarter 2008. The decrease was driven largely by lower production in GMNA, including the impact of the American Axle strike. Including undrawn, committed U.S. credit facilities of approximately $7 billion, GM has access to more than $30 billion in liquidity.
Looking Forward
In light of the current state of the U.S. economy and automotive industry, GM has revised its 2008 U.S. total industry seasonally adjusted annual rate (SAAR) outlook to the mid to high 15 million unit range, down from the low 16 million unit range. As a result of the anticipated softer automotive industry, GM announced earlier this week that it will eliminate a shift of production at four assembly plants: Janesville, WI; Pontiac and Flint, MI and Oshawa, Ont.
“We remain focused on taking the actions necessary to assure GM’s long-term success — product excellence, leadership in advanced propulsion technology, growth in emerging markets, and accelerating the restructuring of our U.S. business to achieve sustainable profitability,” said Wagoner.
Results for the first quarter of 2008 are preliminary and may be revised prior to the filing of GM’s first quarter report on Form 10-Q in May.
# # #
Contacts:
Reneé Rashid-Merem
Phone: 313-665-3128
Email: renee.rashid-merem@gm.com
Reneé Rashid-Merem
Phone: 313-665-3128
Email: renee.rashid-merem@gm.com
Randy Arickx
Phone: 313-667-0006
Email: randy.c.arickx@gm.com
Phone: 313-667-0006
Email: randy.c.arickx@gm.com
4
Forward-looking Statements
In this press release and in related comments by our management, our use of the words “expect,” “anticipate,” “estimate,” “goal,” “target,” “believe,” “improve,” “intend,” “potential,” “continue,” “designed,” “opportunity,” “risk,” “may,” “would,” “could,” “should” 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. Such factors include, among others: our ability to realize production efficiencies, to achieve reductions in costs and to implement capital expenditures at levels and times planned by management; market acceptance of our products; shortages of and price increases for fuel; significant changes in the competitive environment and the effect of competition in our markets, including on our pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; ; labor strikes or work stoppages at our facilities or at our key suppliers; financial difficulties of our key suppliers; adoption of new laws or changes in existing laws that may affect the production, licensing, distribution, cost or sale of our products; the final results of investigations and inquiries by the SEC; court approval of the settlement agreement with the UAW and UAW retirees related to the 2007 National Agreement; satisfaction of the conditions to the effectiveness of the post-retirement healthcare benefit plan contemplated by the 2007 National Agreement; and changes in economic conditions, fuel prices, the housing market, commodity prices, currency exchange rates or political stability in the markets in which we operate. In addition, GMAC’s actual results may differ materially due to numerous important factors including, among others, the following: possible downgrades for GMAC or ResCap by rating agencies; inability to maintain adequate financing sources for its substantial capital needs; credit exposure to us and recent developments in the residential mortgage market, especially in the nonprime sector. The most recent reports on SEC Forms 10-K, 10-Q or 8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplemented in future reports to the SEC on those forms.
5
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release, the accompanying tables and the charts for securities analysts include the following financial measures, which are not prepared in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP): (a) adjusted net income, (b) adjusted earnings before tax, (c) managerial cash flow and (d) GM North America vehicle revenue per unit. Each of these financial measures excludes the impact of certain items and therefore are considered non-GAAP financial measures. This press release and the charts for securities analysts also contain a reconciliation of each presented non-GAAP financial measure to its most comparable GAAP financial measure.
Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM’s operating results because they exclude amounts that GM management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. In addition, GM has historically reported similar non-GAAP financial measures and believes that inclusion of these non-GAAP financial measures provides consistency and comparability with past earnings releases. GM management believes these measures allow it 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 and adjusted earnings before tax for forecasting purposes and in determining our future capital investment allocations. 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 comparable to similarly titled measures of other companies due to potential differences in the method of calculation between companies. Costs such as the special attrition programs 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 or liquidity 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 measures. 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.
Adjusted Net Income and Adjusted Earnings Before Tax
Adjusted net income excludes charges for certain tax related items, gains and losses on the sale of business units and business interests, charges associated with accounting changes, restructuring, plant closure and impairment charges, charges associated with Delphi Corp. (Delphi) and special attrition program charges.
Adjusted earnings before tax begins with adjusted net income and is adjusted to remove any remaining tax expense or benefit.
The following is a discussion of each adjustment to net income or loss determined in accordance with GAAP to arrive at adjusted net income and adjusted earnings before tax, as applicable:
| • | Tax charges.Charges associated with establishing valuation allowances on GM’s deferred tax assets are excluded from adjusted net income. In addition, other tax related items may be periodically excluded from adjusted net income as these charges are incurred and specifically identified in that period. Management believes the exclusion of these tax charges from adjusted net income is useful because management does not consider these charges part of GM’s core earnings in evaluating the performance of the business and excludes these costs when evaluating the performance of the Corporation, its business units and its management team and when making decisions to allocate resources among GM’s business units. |
6
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
| • | Gains and losses on the sale of business units and business interests. The gains and losses on the sale of business units and business interests are excluded from adjusted net income and adjusted earnings before tax. While GM is involved in sales of its business units and business interests from time-to-time and may have significant gains or losses from such sales in the future, such events have historically occurred sporadically. Management excludes the gains and losses associated with these events when it evaluates the Corporation’s operations and for internal reporting and forecasting purposes and for allocation of additional resources. | |
| • | Changes in accounting.Our non-GAAP financial measures exclude charges associated with changes in accounting. Management believes the exclusion of changes in accounting from adjusted net income and adjusted earnings before tax is useful because management does not consider these non-recurring charges part of GM’s core earnings. Accordingly, management 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, impairments, idling and plant closure charges.Our non-GAAP financial measures exclude exit costs and related charges, primarily consisting of severance costs, lease abandonment costs, product specific asset impairments, any subsequent changes in estimates related to exit activities and goodwill and other asset impairment charges. Management believes the exclusion of restructuring and impairment charges from adjusted net income and adjusted earnings before tax 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 determining the allocation of resources, such as capital investments, among the Corporation’s business units and as part of its forecasting and budgeting. | |
| • | Delphi charges.Our non-GAAP financial measures exclude the estimated charges associated with the benefit guarantees and comprehensive settlement agreements entered into with Delphi in connection with the restructuring of Delphi’s operations. 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. | |
| • | Special attrition program charges.Our non-GAAP financial measures exclude the estimated charges associated with the 2008 special attrition program agreement between the UAW and GM and the 2006 special attrition program agreement among the UAW, GM and Delphi. Management believes it is useful in evaluating the performance of GM, its management teams and its business units during a particular time period to exclude charges associated with the special attrition programs. Accordingly, management does not consider these costs as part of its core earnings, 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. |
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.
7
General Motors Corporation
Use of Non-GAAP Financial Measures (Concluded)
GM North America Vehicle Revenue per Unit
GM’s charts for securities analysts also include the use of a non-GAAP measure 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 provides valuable information to investors who are interested in identifying trends and comparing different companies. Revenue per vehicle includes certain vehicle 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 fees on the GM credit card. Also, while they are not treated as sales under GAAP reporting because of GM’s repurchase obligations, management includes sales to daily car rental companies in revenue per vehicle.
Change in Presentation
Prior period results have been reclassified for the retroactive effect of discontinued operations. Certain reclassifications have been made to the comparative 2007 financial information to conform to the current period presentation.
8
General Motors Corporation
List of Special Items
List of Special Items
(Dollars in millions except per share amounts)
(Unaudited)
(Unaudited)
| Three Months Ended | ||||||||
| March 31, 2008 | ||||||||
| Earnings | EPS | |||||||
REPORTED | ||||||||
Net Loss — Basic and Diluted * | $ | (3,251 | ) | $ | (5.74 | ) | ||
ADJUSTMENTS | ||||||||
Pre-Tax Adjustments: | ||||||||
| Impairment charges related to investment in GMAC LLC (A) | $ | 1,452 | ||||||
| Delphi (B) | 731 | |||||||
| Restructuring/Special attrition program (C) | 324 | |||||||
| 2,507 | ||||||||
Tax Related Adjustments: | ||||||||
| Valuation allowance on deferred tax assets (D) | 394 | |||||||
Total Adjustments | $ | 2,901 | $ | 5.12 | ||||
ADJUSTED | ||||||||
Adjusted Loss — Basic and Diluted * | $ | (350 | ) | $ | (0.62 | ) | ||
| * | See average shares outstanding on page 14. |
9
General Motors Corporation
List of Special Items
List of Special Items
(Unaudited)
| (A) | Relates to a charge to record impairments of GM’s investment in Common and Preferred Membership Interests of GMAC LLC. During the period, GM determined that these investments were impaired and that such impairment was not temporary in nature. Due to the uncertainty regarding the timing of a recovery, if any, in valuation, GM reduced the carrying value of these investments to estimated fair value. | |
| (B) | Charge primarily results from updated estimates reflecting the uncertainty around the nature, value and timing of GM’s recoveries upon Delphi’s emergence from bankruptcy. | |
| (C) | Relates to various restructuring initiatives and the 2008 Special Attrition Program. Charges recorded by region are as follows: | |
| GMNA: Charges of $201 million for retirement pension and benefit incentives, pre-retirement incentives and cash buyouts related to the 2008 Special Attrition Program. | ||
| GME: Charges of $123 million were recognized for separation programs primarily in Belgium, Germany and Sweden. | ||
| (D) | Relates to a net charge for a valuation allowance on GM’s net deferred tax assets in Spain and the United Kingdom. |
10
General Motors Corporation
List of Special Items
List of Special Items
(Dollars in millions except per share amounts)
(Unaudited)
(Unaudited)
| Three Months Ended | ||||||||
| March 31, 2007 | ||||||||
| Earnings | EPS | |||||||
REPORTED | ||||||||
| Loss from continuing operations | $ | (42 | ) | $ | (0.07 | ) | ||
| Income from discontinued operations | 104 | 0.18 | ||||||
Net Income — Basic and Diluted * | $ | 62 | $ | 0.11 | ||||
ADJUSTMENTS | ||||||||
Pre-Tax Adjustments: | ||||||||
| Restructuring/Special attrition program (A) | $ | 77 | ||||||
| Product specific asset impairments (B) | 9 | |||||||
| Plant closures (C) | (41 | ) | ||||||
| 45 | ||||||||
Tax Related Adjustments: | ||||||||
| Income tax impact of pre-tax adjustments | (13 | ) | ||||||
Total Adjustments — Continuing Operations | $ | 32 | $ | 0.06 | ||||
ADJUSTED | ||||||||
| Loss from continuing operations | $ | (10 | ) | $ | (0.01 | ) | ||
| Income from discontinued operations | 104 | 0.18 | ||||||
Adjusted Income — Basic and Diluted * | $ | 94 | $ | 0.17 | ||||
| * | See average shares outstanding on page 14. |
11
General Motors Corporation
List of Special Items, Pre-Tax
List of Special Items, Pre-Tax
(Unaudited)
| (A) | Relates to various restructuring initiatives and the 2006 Special Attrition Program. Charges recorded by region are as follows: | |
| GMNA: Curtailment gains of $14 million and favorable adjustments of $4 million were recorded under the 2006 Special Attrition Program. Also includes favorable adjustments of $2 million to our plant closing reserves. | ||
| GME: Charges of $57 million were recognized for separation programs primarily in Germany and Sweden. | ||
| GMAP: Charges of $40 million were recognized relating to separation programs at GM’s Australian facilities. | ||
| (B) | Relates to a charge of $9 million for product specific asset impairments at GMAP, which were triggered by a reduction in the production forecast for GM Holden. | |
| (C) | Relates to a curtailment gain of $38 million and favorable reserve adjustments of $3 million at GMNA related to the closure of two former component plants. |
12
General Motors Corporation
Summary Corporate Financial Results
Summary Corporate Financial Results
(Dollars in millions except per share amounts)
(Unaudited)
(Unaudited)
| First Quarter | ||||||||
| 2008 | 2007 | |||||||
REPORTED | ||||||||
| Total net sales and revenue | $ | 42,670 | $ | 43,387 | ||||
| Loss from continuing operations | $ | (3,251 | ) | $ | (42 | ) | ||
| Income from discontinued operations | $ | — | $ | 104 | ||||
| Net income (loss) | $ | (3,251 | ) | $ | 62 | |||
| Net margin from continuing operations * | (7.6 | )% | (0.1 | )% | ||||
Earnings (loss) per share — basic and diluted | ||||||||
| Continuing operations | $ | (5.74 | ) | $ | (0.07 | ) | ||
| Income from discontinued operations | — | 0.18 | ||||||
Net income (loss) | $ | (5.74 | ) | $ | 0.11 | |||
ADJUSTED | ||||||||
| Total net sales and revenue | $ | 42,670 | $ | 43,387 | ||||
| Loss from continuing operations | $ | (350 | ) | $ | (10 | ) | ||
| Income from discontinued operations | $ | — | $ | 104 | ||||
| Net income (loss) | $ | (350 | ) | $ | 94 | |||
| Net margin from continuing operations * | (0.8 | )% | — | % | ||||
Earnings (loss) per share — basic and diluted | ||||||||
| Continuing operations | $ | (0.62 | ) | $ | (0.01 | ) | ||
| Income from discontinued operations | — | 0.18 | ||||||
Net income (loss) | $ | (0.62 | ) | $ | 0.17 | |||
See reconciliation of adjusted financial results on pages 15 – 18.
| * | Calculated as Loss from continuing operations / Total net sales and revenue. |
13
General Motors Corporation
Summary Corporate Financial Results
Summary Corporate Financial Results
(Unaudited)
| First Quarter | ||||||||
| 2008 | 2007 | |||||||
| GM common stock average shares outstanding: | (Millions) | |||||||
| Reported (GAAP) and Adjusted (Non-GAAP): | ||||||||
| Basic and diluted shares | 566 | 566 | ||||||
Cash dividends per share of common stock | $ | 0.25 | $ | 0.25 | ||||
Automotive cash & marketable securities and readily-available assets in VEBA at March 31: | (Billions) | |||||||
| Automotive cash & marketable securities | $ | 23.2 | $ | 21.1 | ||||
| Readily—available assets in VEBA | 0.7 | 3.6 | ||||||
Total automotive cash & marketable securities and readily-available assets in VEBA | $ | 23.9 | $ | 24.7 | ||||
| Automotive Operations: | (Millions) | |||||||
| Depreciation | $ | 1,226 | $ | 1,245 | ||||
| Amortization of special tools | 772 | 720 | ||||||
| Amortization of intangible assets | 20 | 17 | ||||||
Total | $ | 2,018 | $ | 1,982 | ||||
14
General Motors Corporation
Summary Corporate Financial Results
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
(Unaudited)
First Quarter
2008 and 2007
2008 and 2007
| Reported | Special Items | Adjusted | ||||||||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||
Net sales and revenue: | ||||||||||||||||||||||||
| GMNA | $ | 24,543 | $ | 28,057 | $ | — | $ | — | $ | 24,543 | $ | 28,057 | ||||||||||||
| GME | 9,909 | 8,471 | — | — | 9,909 | 8,471 | ||||||||||||||||||
| GMLAAM | 4,763 | 3,577 | — | — | 4,763 | 3,577 | ||||||||||||||||||
| GMAP | 5,477 | 4,568 | — | — | 5,477 | 4,568 | ||||||||||||||||||
| Auto Elimination (a) | (2,567 | ) | (2,222 | ) | — | — | (2,567 | ) | (2,222 | ) | ||||||||||||||
| Total GMA | 42,125 | 42,451 | — | — | 42,125 | 42,451 | ||||||||||||||||||
| Corporate & Other | — | — | — | — | — | — | ||||||||||||||||||
Total Auto & Other | 42,125 | 42,451 | — | — | 42,125 | 42,451 | ||||||||||||||||||
| GMAC | — | — | — | — | — | — | ||||||||||||||||||
| Other Financing | 545 | 936 | — | — | 545 | 936 | ||||||||||||||||||
Total Financing | 545 | 936 | — | — | 545 | 936 | ||||||||||||||||||
Total | $ | 42,670 | $ | 43,387 | $ | — | $ | — | $ | 42,670 | $ | 43,387 | ||||||||||||
| Income (loss) from continuing operations before income taxes, other equity income and minority interests: | ||||||||||||||||||||||||
| GMNA | $ | (795 | ) | $ | (211 | ) | $ | 201 | $ | (61 | ) | $ | (594 | ) | $ | (272 | ) | |||||||
| GME | 69 | 2 | 123 | 57 | 192 | 59 | ||||||||||||||||||
| GMLAAM | 518 | 255 | — | — | 518 | 255 | ||||||||||||||||||
| GMAP | 202 | 94 | — | 49 | 202 | 143 | ||||||||||||||||||
| Auto Elimination (a) | 2 | (7 | ) | — | — | 2 | (7 | ) | ||||||||||||||||
| Total GMA | (4 | ) | 133 | 324 | 45 | 320 | 178 | |||||||||||||||||
| Corporate & Other (a) | (1,029 | ) | (210 | ) | 731 | — | (298 | ) | (210 | ) | ||||||||||||||
Total Auto & Other | (1,033 | ) | (77 | ) | 1,055 | 45 | 22 | (32 | ) | |||||||||||||||
| GMAC | (1,728 | ) | (134 | ) | 1,452 | — | (276 | ) | (134 | ) | ||||||||||||||
| Other Financing (a) | 104 | 54 | — | — | 104 | 54 | ||||||||||||||||||
Total Financing | (1,624 | ) | (80 | ) | 1,452 | — | (172 | ) | (80 | ) | ||||||||||||||
Total | $ | (2,657 | ) | $ | (157 | ) | $ | 2,507 | $ | 45 | $ | (150 | ) | $ | (112 | ) | ||||||||
See footnotes on page 20.
15
General Motors Corporation
Summary Corporate Financial Results
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
(Unaudited)
First Quarter
2008 and 2007
2008 and 2007
| Reported | Special Items | Adjusted | ||||||||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||
| Equity income (loss), net of tax: | ||||||||||||||||||||||||
| GMNA | $ | (20 | ) | $ | 13 | $ | — | $ | — | $ | (20 | ) | $ | 13 | ||||||||||
| GME | 13 | 8 | — | — | 13 | 8 | ||||||||||||||||||
| GMLAAM | 5 | 6 | — | — | 5 | 6 | ||||||||||||||||||
| GMAP | 134 | 127 | — | — | 134 | 127 | ||||||||||||||||||
| Auto Elimination | — | — | — | — | — | — | ||||||||||||||||||
| Total GMA | 132 | 154 | — | — | 132 | 154 | ||||||||||||||||||
| Corporate & Other | — | 2 | — | — | — | 2 | ||||||||||||||||||
Total Auto & Other | 132 | 156 | — | — | 132 | 156 | ||||||||||||||||||
| GMAC | — | — | — | — | — | — | ||||||||||||||||||
| Other Financing | — | — | — | — | — | — | ||||||||||||||||||
Total Financing | — | — | — | — | — | -- | ||||||||||||||||||
Total | $ | 132 | $ | 156 | $ | — | $ | — | $ | 132 | $ | 156 | ||||||||||||
| Minority interests, net of tax: | ||||||||||||||||||||||||
| GMNA | $ | 3 | $ | (10 | ) | $ | — | $ | — | $ | 3 | $ | (10 | ) | ||||||||||
| GME | (7 | ) | (6 | ) | — | — | (7 | ) | (6 | ) | ||||||||||||||
| GMLAAM | (6 | ) | (7 | ) | — | — | (6 | ) | (7 | ) | ||||||||||||||
| GMAP | (50 | ) | (78 | ) | — | — | (50 | ) | (78 | ) | ||||||||||||||
| Auto Elimination | — | — | — | — | — | — | ||||||||||||||||||
| Total GMA | (60 | ) | (101 | ) | — | — | (60 | ) | (101 | ) | ||||||||||||||
| Corporate & Other | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||
Total Auto & Other | (60 | ) | (102 | ) | — | — | (60 | ) | (102 | ) | ||||||||||||||
| GMAC | — | — | — | — | — | — | ||||||||||||||||||
| Other Financing | (13 | ) | — | — | — | (13 | ) | — | ||||||||||||||||
Total Financing | (13 | ) | — | — | — | (13 | ) | -- | ||||||||||||||||
Total | $ | (73 | ) | $ | (102 | ) | $ | — | $ | — | $ | (73 | ) | $ | (102 | ) | ||||||||
See footnotes on page 20.
16
General Motors Corporation
Summary Corporate Financial Results
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
(Unaudited)
First Quarter
2008 and 2007
2008 and 2007
| Reported | Special Items | Adjusted | ||||||||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||
Pre-tax earnings (loss):* | ||||||||||||||||||||||||
| GMNA | $ | (812 | ) | $ | (208 | ) | $ | 201 | $ | (61 | ) | $ | (611 | ) | $ | (269 | ) | |||||||
| GME | 75 | 4 | 123 | 57 | 198 | 61 | ||||||||||||||||||
| GMLAAM | 517 | 254 | — | — | 517 | 254 | ||||||||||||||||||
| GMAP | 286 | 143 | — | 49 | 286 | 192 | ||||||||||||||||||
| Auto Elimination (a) | 2 | (7 | ) | — | — | 2 | (7 | ) | ||||||||||||||||
| Total GMA | 68 | 186 | 324 | 45 | 392 | 231 | ||||||||||||||||||
| Corporate & Other (a) | (1,029 | ) | (209 | ) | 731 | — | (298 | ) | (209 | ) | ||||||||||||||
Total Auto & Other | (961 | ) | (23 | ) | 1,055 | 45 | 94 | 22 | ||||||||||||||||
| GMAC | (1,728 | ) | (134 | ) | 1,452 | — | (276 | ) | (134 | ) | ||||||||||||||
| Other Financing (a) | 91 | 54 | — | — | 91 | 54 | ||||||||||||||||||
Total Financing | (1,637 | ) | (80 | ) | 1,452 | — | (185 | ) | (80 | ) | ||||||||||||||
Total | $ | (2,598 | ) | $ | (103 | ) | $ | 2,507 | $ | 45 | $ | (91 | ) | $ | (58 | ) | ||||||||
Income tax expense (benefit): | ||||||||||||||||||||||||
| Corporate & Other | $ | 645 | $ | (67 | ) | $ | (394 | ) | $ | 13 | $ | 251 | $ | (54 | ) | |||||||||
| Other Financing (a) | 8 | 6 | — | — | 8 | 6 | ||||||||||||||||||
Total | $ | 653 | $ | (61 | ) | $ | (394 | ) | $ | 13 | $ | 259 | $ | (48 | ) | |||||||||
See footnotes on page 20.
| * | Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests. |
17
General Motors Corporation
Summary Corporate Financial Results
Summary Corporate Financial Results
(Dollars in billions)
(Unaudited)
(Unaudited)
| First Quarter | ||||||||
| 2008 | 2007 | |||||||
Automotive & Other Adjusted Operating Cash Flow: | ||||||||
| Total Auto & Other pre-tax loss * | $ | (1.0 | ) | $ | — | |||
| Depreciation and amortization | 2.0 | 2.0 | ||||||
| Capital expenditures | (1.9 | ) | (1.2 | ) | ||||
| Change in receivables, payables and inventory | (2.0 | ) | — | |||||
| Pension/OPEB expense (net of payments) | (0.7 | ) | (0.5 | ) | ||||
| Accrued expenses and other | — | (0.1 | ) | |||||
Total Auto & Other Adjusted Operating Cash Flow | $ | (3.6 | ) | $ | 0.2 | |||
| * | Defined here as Loss from continuing operations before income taxes and after equity income and minority interests. |
18
General Motors Corporation
Operating Statistics
Operating Statistics
(Unaudited)
| First Quarter | ||||||||
| 2008 | 2007 | |||||||
| Worldwide Production Volume: | (Units in thousands) | |||||||
| GMNA — Cars | 360 | 399 | ||||||
| GMNA — Trucks | 525 | 664 | ||||||
| Total GMNA | 885 | 1,063 | ||||||
| GME | 493 | 511 | ||||||
| GMLAAM | 243 | 222 | ||||||
| GMAP* | 612 | 544 | ||||||
Total Worldwide ** | 2,233 | 2,340 | ||||||
Vehicle Unit Deliveries: | ||||||||
| Chevrolet — Cars | 181 | 187 | ||||||
| Chevrolet — Trucks | 299 | 362 | ||||||
| Pontiac | 72 | 79 | ||||||
| GMC | 104 | 111 | ||||||
| Buick | 38 | 43 | ||||||
| Saturn | 48 | 57 | ||||||
| Cadillac | 47 | 47 | ||||||
| Other | 17 | 23 | ||||||
| Total United States | 806 | 909 | ||||||
| Canada, Mexico and Other | 141 | 146 | ||||||
| Total GMNA | 947 | 1,055 | ||||||
| GME | 572 | 554 | ||||||
| GMLAAM | 323 | 270 | ||||||
| GMAP * | 411 | 388 | ||||||
Total Worldwide ** | 2,254 | 2,268 | ||||||
Market Share: | ||||||||
| United States — Cars | 19.1 | % | 19.5 | % | ||||
| United States — Trucks | 24.9 | % | 25.5 | % | ||||
| Total United States | 22.1 | % | 22.8 | % | ||||
| Total GMNA | 21.7 | % | 22.5 | % | ||||
| Total GME | 9.6 | % | 9.7 | % | ||||
| Total GMLAAM | 17.9 | % | 16.7 | % | ||||
| Total GMAP * | 7.0 | % | 7.2 | % | ||||
Total Worldwide | 12.5 | % | 13.0 | % | ||||
U.S. Retail/Fleet Mix: | ||||||||
| % Fleet Sales — Cars | 33.5 | % | 36.8 | % | ||||
| % Fleet Sales — Trucks | 21.9 | % | 18.4 | % | ||||
Total Vehicles | 26.7 | % | 25.5 | % | ||||
GMNA Capacity Utilization *** | 76.1 | % | 88.1 | % | ||||
| * | GMAP production and sales volume includes SAIC-GM Wuling Automobile Co. Ltd. joint venture vehicles. We own 34% of SGMW and under the joint venture agreement have significant rights as a member as well as the contractual right to report SGMW sales in China as part of our global market share. | |
| ** | Total Worldwide may include rounding differences. | |
| *** | Two shift rated, annualized. |
19
General Motors Corporation
Operating Statistics
Operating Statistics
(Unaudited)
| First Quarter | ||||||||
| 2008 | 2007 | |||||||
GMAC’s share of GM retail sales (U.S. only) | ||||||||
| Total consumer volume (retail and lease) as % of retail | 49 | % | 46 | % | ||||
| SmartLease as % of retail | 19 | % | 16 | % | ||||
| Worldwide Employment at March 31: | (Thousands) | |||||||
| United States — Hourly (b) | 76 | 83 | ||||||
| United States — Salaried (b) | 32 | 33 | ||||||
| Total United States | 108 | 116 | ||||||
| Canada, Mexico and Other | 28 | 29 | ||||||
| GMNA | 136 | 145 | ||||||
| GME | 58 | 59 | ||||||
| GMLAAM | 35 | 33 | ||||||
| GMAP | 35 | 34 | ||||||
| Other | 2 | 2 | ||||||
Total GM | 266 | 273 | ||||||
| (Billions) | ||||||||
Worldwide Payroll | $ | 4.3 | $ | 4.6 | ||||
Footnotes:
| (a) | Auto Eliminations, Corporate & Other and Other Financing include inter-company eliminations. | |
| (b) | Includes approximately 2,350 hourly and 1,125 salary employees of Allison Transmission at March 31, 2007. |
20
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
(Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
| Net sales and revenue | ||||||||
| Automotive sales | $ | 42,125 | $ | 42,451 | ||||
| Financial services and insurance revenue | 545 | 936 | ||||||
| Total net sales and revenue | 42,670 | 43,387 | ||||||
| Costs and expenses | ||||||||
| Automotive cost of sales | 38,333 | 38,889 | ||||||
| Selling, general and administrative expense | 3,699 | 3,311 | ||||||
| Financial services and insurance expense | 496 | 883 | ||||||
| Other expenses | 731 | — | ||||||
| Total costs and expenses | 43,259 | 43,083 | ||||||
| Operating income (loss) | (589 | ) | 304 | |||||
| Equity in loss of GMAC LLC | (1,612 | ) | (183 | ) | ||||
| Automotive and other interest expense | (774 | ) | (799 | ) | ||||
| Automotive interest income and other non-operating income, net | 318 | 521 | ||||||
| Loss from continuing operations before income taxes, equity income and minority interests | (2,657 | ) | (157 | ) | ||||
| Income tax expense (benefit) | 653 | (61 | ) | |||||
| Equity income, net of tax | 132 | 156 | ||||||
| Minority interests, net of tax | (73 | ) | (102 | ) | ||||
| Loss from continuing operations | (3,251 | ) | (42 | ) | ||||
| Income from discontinued operations, net of tax | — | 104 | ||||||
Net income (loss) | $ | (3,251 | ) | $ | 62 | |||
Earnings (loss) per share, basic and diluted: | ||||||||
| Continuing operations | $ | (5.74 | ) | $ | (0.07 | ) | ||
| Discontinued operations | — | 0.18 | ||||||
| Total | $ | (5.74 | ) | $ | 0.11 | |||
Weighted average common shares outstanding, basic and diluted (millions) | 566 | 566 | ||||||
| Cash dividends per share | $ | 0.25 | $ | 0.25 | ||||
21
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
(Unaudited)
| March 31, | December 31, | March 31, | ||||||||||
| 2008 | 2007 | 2007 | ||||||||||
| ASSETS | ||||||||||||
Current Assets | ||||||||||||
| Cash and cash equivalents | $ | 21,362 | $ | 24,549 | $ | 20,923 | ||||||
| Marketable securities | 1,831 | 2,139 | 159 | |||||||||
| Total cash and marketable securities | 23,193 | 26,688 | 21,082 | |||||||||
| Accounts and notes receivable, net | 10,071 | 9,659 | 9,697 | |||||||||
| Inventories | 16,915 | 14,939 | 15,431 | |||||||||
| Equipment on operating leases, net | 4,826 | 5,283 | 5,650 | |||||||||
| Other current assets and deferred income taxes | 4,033 | 3,566 | 13,101 | |||||||||
| Total current assets | 59,038 | 60,135 | 64,961 | |||||||||
Financing and Insurance Operations Assets | ||||||||||||
| Cash and cash equivalents | 239 | 268 | 301 | |||||||||
| Investments in securities | 212 | 215 | 187 | |||||||||
| Equipment on operating leases, net | 5,304 | 6,712 | 10,457 | |||||||||
| Equity in net assets of GMAC LLC | 5,391 | 7,079 | 7,355 | |||||||||
| Other assets | 2,864 | 2,715 | 3,684 | |||||||||
| Total Financing and Insurance Operations assets | 14,010 | 16,989 | 21,984 | |||||||||
Non-Current Assets | ||||||||||||
| Equity in net assets of nonconsolidated affiliates | 1,931 | 1,919 | 2,001 | |||||||||
| Property, net | 43,282 | 43,017 | 41,612 | |||||||||
| Goodwill and intangible assets, net | 1,093 | 1,066 | 1,058 | |||||||||
| Deferred income taxes | 857 | 2,116 | 32,588 | |||||||||
| Prepaid pension | 20,593 | 20,175 | 17,639 | |||||||||
| Other assets | 4,044 | 3,466 | 3,467 | |||||||||
| Total non-current assets | 71,800 | 71,759 | 98,365 | |||||||||
Total Assets | $ | 144,848 | $ | 148,883 | $ | 185,310 | ||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||
Current Liabilities | ||||||||||||
| Accounts payable (principally trade) | $ | 29,793 | $ | 29,439 | $ | 30,065 | ||||||
| Short-term borrowings and current portion of long-term debt | 5,968 | 6,047 | 4,834 | |||||||||
| Accrued expenses | 34,657 | 34,822 | 33,517 | |||||||||
| Total current liabilities | 70,418 | 70,308 | 68,416 | |||||||||
Financing and Insurance Operations Liabilities | ||||||||||||
| Debt | 3,879 | 4,908 | 8,297 | |||||||||
| Other liabilities and deferred income taxes | 928 | 905 | 1,705 | |||||||||
| Total Financing and Insurance Operations Liabilities | 4,807 | 5,813 | 10,002 | |||||||||
Non-Current Liabilities | ||||||||||||
| Long-term debt | 34,168 | 33,384 | 33,120 | |||||||||
| Postretirement benefits other than pensions | 46,994 | 47,375 | 49,321 | |||||||||
| Pensions | 11,624 | 11,381 | 11,293 | |||||||||
| Other liabilities and deferred income taxes | 16,511 | 16,102 | 16,571 | |||||||||
| Total non-current liabilities | 109,297 | 108,242 | 110,305 | |||||||||
| Total liabilities | 184,522 | 184,363 | 188,723 | |||||||||
| Commitments and contingencies | ||||||||||||
| Minority interests | 1,369 | 1,614 | 1,145 | |||||||||
Stockholders’ Deficit | ||||||||||||
| Preferred stock, no par value, 6,000,000 shares authorized, no shares issued and outstanding | — | — | — | |||||||||
| Common stock, $1 2/3 par value (2,000,000,000 shares authorized, 756,637,541 and 566,100,839 shares issued and outstanding at March 31, 2008, respectively, 756,637,541 and 566,059,249 shares issued and outstanding at December 31, 2007, respectively, and 756,637,541 and 565,738,371 shares issued and outstanding at March 31, 2007, respectively) | 944 | 943 | 943 | |||||||||
| Capital surplus (principally additional paid-in capital) | 15,327 | 15,319 | 15,346 | |||||||||
| Retained deficit | (42,847 | ) | (39,392 | ) | (172 | ) | ||||||
| Accumulated other comprehensive loss | (14,467 | ) | (13,964 | ) | (20,675 | ) | ||||||
| Total stockholders’ deficit | (41,043 | ) | (37,094 | ) | (4,558 | ) | ||||||
Total Liabilities, Minority Interests and Stockholders’ Deficit | $ | 144,848 | $ | 148,883 | $ | 185,310 | ||||||
22