DETROIT, July 21, 2016 /PRNewswire/ --
- Strong EPS diluted of $1.81;
record EPS diluted-adjusted of $1.86
- Record net revenue of $42.4
billion, up 11 percent
- Record EBIT-adjusted of $3.9
billion, up 37 percent
- GM North America sets
records for EBIT-adjusted of $3.6
billion, 12.1 percent margin
General Motors Co. (NYSE: GM) today announced strong
second-quarter net income to common stockholders of $2.9 billion, up 157 percent compared to
$1.1 billion in the second quarter of
2015. Earnings per share (EPS) diluted was a strong $1.81, compared to $0.67 in the second quarter a year ago.
EPS diluted-adjusted was a record at $1.86, up 44 percent compared to $1.29 in the second quarter of 2015.
The company reported records for earnings before interest and
tax (EBIT) adjusted of $3.9 billion
and EBIT-adjusted margin of 9.3 percent. These compare to
EBIT-adjusted of $2.9 billion and
EBIT-adjusted margin of 7.5 percent in the second quarter of 2015,
which included the impact of $0.3
billion restructuring costs.
"This was an outstanding quarter for GM," said Chairman and CEO
Mary Barra. "Our results were
generated by strong retail sales in the U.S., record sales in
China and a continued emphasis on
improving the performance of our operations worldwide. We'll
continue to focus on driving profitable growth and leveraging our
technical expertise to lead in the future of personal
mobility."
Net revenue of $42.4 billion
was a record, compared to $38.2
billion in the second quarter of 2015. Holding exchange
rates constant, net revenue was $5.0
billion higher than the second quarter of 2015.
GM Results Overview (dollars in billions except for per
share amounts and where noted)
|
Q2
2016
|
Q2
2015
|
Global deliveries
(millions of units)
|
2.4
|
2.4
|
Net
revenue
|
$42.4
|
$38.2
|
Net income
attributable to common stockholders
|
$2.9
|
$1.1
|
EPS
diluted
|
$1.81
|
$0.67
|
Impact of special
items on EPS diluted
|
$(0.05)
|
$(0.62)
|
EPS
diluted–adjusted
|
$1.86
|
$1.29
|
EBIT-adjusted
|
$3.9
|
$2.9
|
% EBIT-adjusted
margin
|
9.3
|
7.5
|
Automotive net
cash flow from operating activities
|
$5.0
|
$5.1
|
Adjusted
automotive free cash flow
|
$3.2
|
$3.3
|
% return on
invested capital (ROIC)
|
30.5
|
23.4
|
Segment EBIT-Adjusted Results
- GM North America reported
record EBIT-adjusted of $3.6 billion
compared with $2.8 billion in the
second quarter of 2015. For the quarter, EBIT-adjusted margin was a
record 12.1 percent, compared to 10.5 percent a year ago.
- GM Europe reported
EBIT-adjusted of $0.1 billion
compared with breakeven EBIT-adjusted results in the second quarter
of 2015. This result is the first profitable quarter since the
second quarter of 2011.
- GM International Operations reported EBIT-adjusted of
$0.2 billion compared with
$0.3 billion in the second quarter of
2015. Results included China
equity income of $0.5 billion in both
periods.
- GM South America reported
EBIT-adjusted of $(0.1) billion,
about equal with the second quarter of 2015.
- GM Financial reported earnings before tax of $0.3 billion, compared with $0.2 billion in the second quarter of 2015.
Cash Flow and Liquidity
For the quarter, automotive cash flow from operating activities
was $5.0 billion. Adjusted automotive
free cash flow was $3.2 billion. GM
ended the quarter with total automotive liquidity of $34.1 billion, and automotive cash and marketable
securities of $20.1 billion.
"When you deliver cars, trucks and crossovers customers really
value, and generate efficiencies across the enterprise, great
results follow," said Chuck Stevens,
GM executive vice president and chief financial officer. "With our
aggressive vehicle launch cadence and robust global industry sales,
we are confident that we can continue to achieve strong financial
performance."
GM expects a higher proportion of volume from new or refreshed
vehicles each year through 2020 compared to the prior five years,
increasing to 40 percent of its total global volume, up from 26
percent in 2015.
2016 Outlook
Based on the company's strong financial performance through the
first half of 2016 and its current outlook for the second half of
the year, GM now expects 2016 full year EPS diluted-adjusted to be
$5.50 – $6.00, up from the previously announced
$5.25 – $5.75 range.
Global Vehicle Sales
GM sold 2.4 million vehicles globally in the second quarter of
2016 to customers, about equal to the second quarter of 2015.
Through June 30, the company sold
4.76 million vehicles globally.
In the U.S., GM sold 1.44 million vehicles in the first six
months of the year, which included a retail sales increase of more
than 1 percent. U.S. retail market share rose 0.4 percentage points
through June, the largest retail share gain of any full-line
automaker. In China, GM and its
joint ventures delivered a record 1.81 million vehicles during the
first half of the year, an increase of 5.3 percent. In Europe, Opel / Vauxhall outperformed the
industry with a 7-percent sales increase to 621,000 vehicles in the
first half of the year.
For more information on quarterly and year-to-date global sales
please click here.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners
produce vehicles in 30 countries, and the company has leadership
positions in the world's largest and fastest-growing automotive
markets. GM, its subsidiaries and joint venture entities sell
vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden,
Jiefang, Opel, Vauxhall and Wuling brands. More information on the
company and its subsidiaries, including OnStar, a global leader in
vehicle safety, security and information services, can be found at
http://www.gm.com.
Forward-Looking Statements
In this press release and related comments by management, and in
reports we subsequently file and have previously filed with the SEC
on Forms 10-K and 10-Q and file or furnish on Form 8-K, and in
related comments by our management, we use words like "anticipate,"
"appears," "approximately," "believe," "continue," "could,"
"designed," "effect," "estimate," "evaluate," "expect," "forecast,"
"goal," "initiative," "intend," "may," "objective," "outlook,"
"plan," "potential," "priorities," "project," "pursue," "seek,"
"will," "should," "target," "when," "would," or the negative of any
of those words or similar expressions to identify forward-looking
statements that represent our current judgment about possible
future events. In making these statements we rely on assumptions
and analyses based on our experience and perception of historical
trends, current conditions and expected future developments as well
as other factors we consider appropriate under the circumstances.
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, both positive and negative. These factors, which may be
revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K, include, among others: (1) our ability to maintain
profitability over the long-term, including our ability to fund and
introduce new and improved vehicle models that are able to attract
a sufficient number of consumers; (2) the success of our full-size
pick-up trucks and SUVs; (3) global automobile market sales volume,
which can be volatile; (4) the results of our joint ventures, which
we cannot operate solely for our benefit and over which we may have
limited control; (5) our ability to realize production efficiencies
and to achieve reductions in costs as we implement operating
effectiveness initiatives throughout our automotive operations; (6)
our ability to maintain quality control over our vehicles and avoid
material vehicle recalls and the cost and effect on our reputation
and products; (7) our ability to maintain adequate liquidity and
financing sources including as required to fund our new technology;
(8) our ability to realize successful vehicle applications of new
technology and our ability to deliver new products, services and
customer experiences in response to new participants in the
automotive industry; (9) volatility in the price of oil; (10) the
ability of our suppliers to deliver parts, systems and components
without disruption and at such times to allow us to meet production
schedules; (11) risks associated with our manufacturing facilities
around the world; (12) our ability to manage the distribution
channels for our products; (13) our ability to successfully
restructure our operations in various countries; (14) the continued
availability of wholesale and retail financing in markets in which
we operate to support the sale of our vehicles, which is dependent
on those entities' ability to obtain funding and their continued
willingness to provide financing; (15) changes in economic
conditions, commodity prices, housing prices, foreign currency
exchange rates or political stability in the markets in which we
operate; (16) significant changes in the competitive environment,
including the effect of competition and excess manufacturing
capacity in our markets, on our pricing policies or use of
incentives and the introduction of new and improved vehicle models
by our competitors; (17) significant changes in economic,
political, regulatory and market conditions in the countries in
which we operate, particularly China, with the effect of competition from new
market entrants and in the United
Kingdom with passage of a referendum to discontinue
membership in the European Union; (18) changes in existing, or the
adoption of new, laws, regulations, policies or other activities of
governments, agencies and similar organizations, particularly laws,
regulations and policies relating to vehicle safety including
recalls, and including such actions that may affect the production,
licensing, distribution or sale of our products, the cost thereof
or applicable tax rates; (19) stricter or novel interpretations and
consequent enforcement of existing laws, regulations and policies;
(20) costs and risks associated with litigation and government
investigations including the potential imposition of damages,
substantial fines, civil lawsuits and criminal penalties,
interruptions of business, modification of business practices,
equitable remedies and other sanctions against us in connection
with various legal proceedings and investigations relating to our
various recalls; (21) our ability to comply with the terms of the
DPA; (22) our ability to manage risks related to security breaches
and other disruptions to our vehicles, information technology
networks and systems; (23) significant increases in our pension
expense or projected pension contributions resulting from changes
in the value of plan assets, the discount rate applied to value the
pension liabilities or mortality or other assumption changes; (24)
our continued ability to develop captive financing capability
through GM Financial; and (25) changes in accounting principles, or
their application or interpretation, and our ability to make
estimates and the assumptions underlying the estimates, which could
have an effect on earnings.
We caution readers not to place undue reliance on
forward-looking statements. We undertake no obligation to update
publicly or otherwise revise any forward-looking statements,
whether as a result of new information, future events or other
factors that affect the subject of these statements, except where
we are expressly required to do so by law.
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SOURCE General Motors