GM Reports Second Quarter Financial Results
- Net income of $901 million, or $1.58 per share
- Adjusted net income of $879 million, or $1.57 per share,
excluding Hughes
- Total automotive cash exceeded $23 billion
DETROIT, July 17 -- General Motors Corp. (NYSE: GM, GMH) today reported net
income of
$901 million, or $1.58 per diluted share of GM's $1-2/3 par value common stock,
in the second quarter of 2003,
compared with $1.3 billion, or $2.43 per share, in the second quarter of 2002.
Total revenues of $48.3 billion were
essentially unchanged from the prior-year quarter.
GM's adjusted income, which excludes results from Hughes, totaled $879
million, or $1.57 per share, in the
second quarter of 2003. GM's adjusted net income in the second quarter of 2002
was $1.5 billion, or $2.63 per
share, excluding Hughes and special items.
GM's second-quarter performance reflected continued strong automotive cash
flow, record results at General
Motors Acceptance Corp. (GMAC) where earnings of $834 million were nearly double
the prior-year quarter, record
net income of $163 million at GM Asia Pacific, an overall profit decline in the
automotive sector primarily caused
by difficult economic conditions in most of GM's automotive regions, and the
effects of unfavorable currency-
exchange rates in certain regions.
"Overall we had reasonable financial results in a challenging global
economic environment," GM Chairman and
Chief Executive Officer Rick Wagoner said. "These results clearly demonstrate
the benefits of our global portfolio
of businesses, ranging from our core automotive operations in all four regions
of the world, to vehicle financing and
mortgage operations. We're especially
pleased with the strong cash generation by our automotive operations and
continued strong performance at GMAC,
which set another new quarterly earnings record. Our Asia-Pacific automotive
operations continue to grow and
generated record profits."
Continued cost reductions and a revitalized product portfolio drove improved
financial performance to
approximately breakeven at GM Europe. However, lower volumes and continuing
pricing pressures in North
America eroded profits despite aggressive cost reductions and improved revenue
per unit.
"We're working hard to improve financial results in North America. We're
going to stay focused on the straight-
forward business strategy that has worked very well for us in recent times --
delivering great new products, being
aggressive in the market, and significantly improving our quality and cost,"
Wagoner said.
GM financial results described throughout the remainder of this release
exclude special items unless otherwise
noted. See Highlights for reconciliation of adjusted results to results based
on Generally Accepted Accounting
Principles (GAAP).
Cash and Liquidity
GM generated $3.1 billion in cash in the second quarter of 2003.
Automotive cash, marketable securities, and assets of the VEBA trust invested in
short-term fixed-income securities
totaled $23.7 billion at June 30, 2003, excluding financing and insurance
operations and Hughes, compared with
$20.6 billion on March 31, 2003. In addition, as reported earlier, GM raised an
additional $13.2 billion in early July through new offerings of debt securities
and convertible debt.
GM Automotive Operations
GM's global automotive operations earned $140 million in the second quarter
of 2003, compared with $1.1 billion
in the prior-year period. Global production declined 6.6 percent in the second
quarter, compared with the same
period in 2002.
GM North America (GMNA) earned $83 million in the second quarter of 2003,
compared with $1.3 billion in the
second quarter last year. Improvements in sales mix, material cost, and
productivity were more than offset by a
production decline of nearly 12 percent, intense pricing pressure, increased
pension expense, and currency-exchange
losses versus the year-ago period. The
results also include the $168 million after taxes, or $0.30 per share,
unfavorable effect of the storm damage and
resulting loss of production at GM's Oklahoma City assembly plant. Strong
quality performance allowed the
corporation to reduce its policy and warranty reserves in the second quarter by
$199 million after taxes, or $0.36 per
share.
GM's quality and productivity gains were recognized recently in two major
independent surveys. "GM's quality
drive is on track, producing significant improvements that increasingly are
being recognized by consumers and the
marketplace," Wagoner said. The J.D. Power 2003 Vehicle Dependability Study
showed Buick among the top three
nameplates in long-term quality, and the best
nameplate outside the luxury brands. General Motors overall was the only
domestic manufacturer to score above the
industry average, and 12 GM vehicles were in the top three of their respective
segment rankings. "Our goal is to be
the industry leader in all areas of quality, and this is another example of
our progress toward achieving that goal," he said.
"Once again, GM showed significant improvement in our journey to become the
most productive auto
manufacturer with a 7.4 percent overall improvement in manufacturing
productivity according to the recently
released Harbour Report North America 2003," Wagoner said. "GM has led the
industry in productivity
improvements in recent years, and we're committed to continuing this kind of
performance going forward."
GM's U.S. market share was 27.9 percent in the second quarter of 2003, down
slightly from 28.1 percent in the
second quarter of 2002, but significantly improved from the 26.6 percent level
in the first quarter this year.
GM Europe (GME) reported a loss of $3 million in the second quarter of 2003,
a significant turnaround from a
year ago when GME recorded a $115 million loss. Aggressive cost reductions and
increased vehicle sales at
Opel/Vauxhall and Saab drove these improved financial results, despite
significant currency-exchange losses. GM
Europe's market share in the second quarter increased 0.3 percentage points to
9.4 percent compared with the same
period last year.
"Despite the challenging economic conditions and currency-exchange pressures
that are affecting our
performance, we're on the right track in Europe with exciting new products,
significant quality improvement, and a
steady and broad-based approach to cost reduction," Wagoner said.
GM Asia Pacific earned a record $163 million in the second quarter of 2003,
more than four times the $39 million
earned in the year-ago quarter. Strong financial results at Shanghai GM and
GM's Australia-based Holden continued
to drive improved financial results along with improved equity earnings from
GM's Japanese automotive alliances
and lower-than-expected start-up losses at GM Daewoo Auto & Technology Co. "Our
aggressive growth
strategy in the rapidly expanding Asia-Pacific region is really paying off; we
remain committed to further expand our
presence in this key region," Wagoner said.
Continuing economic weakness in Brazil was the primary factor in GM Latin
America/Africa/Mid-East
(GMLAAM) region's $103 million loss in the second quarter of 2003, which
compared with a loss of $73 million in
the year-ago period. "Latin America is still suffering from economic
uncertainty and weak auto markets," Wagoner
said. "Our focus continues to be on wringing out costs
while increasing our market share and strengthening our number-one position in
the region."
GMAC
GMAC earned $834 million in the second quarter of 2003, its best-ever
quarterly performance. The results were
nearly double the $431 million earned in the same period last year.
"We're extremely pleased with the continued outstanding overall financial
performance at GMAC," Wagoner said.
Strong volumes in the residential and commercial mortgage sectors, and
continuing strength in GMAC's financing
operations were key drivers in GMAC's record performance.
Mortgage operations generated income of $415 million in the second quarter
of 2003, up $357 million from the
year-ago period, while earnings from financing operations were $396 million, up
$49 million from the same period
last year.
Hughes
Hughes Electronics earned $22 million in the second quarter of 2003,
compared with a loss of $156 million in the
prior-year period, led by a strong performance at DirecTV. Revenues increased
6.6 percent to $2.4 billion.
In the United States, DirecTV added 136,000 net subscribers in the second
quarter of 2003, bringing the number
of total U.S. subscribers to 11.6 million.
Looking Ahead
GM expects improving economic growth during the balance of 2003 in the
United States, with total U.S. industry
vehicle sales expected to be at least 16.5 million units for the calendar year.
In Europe, especially Germany,
economic and market conditions are expected to remain challenging in the second
half of the year. Total European
industry vehicle sales are estimated to be about 18.5 million units for 2003.
GM expects to beat the current analysts' consensus for the third quarter of
approximately $0.50 per share,
excluding Hughes and any special items, and expects automotive operations to be
profitable. Despite the continuing
economic uncertainty, GM is more optimistic about the outlook for the
year, and now expects full-year 2003 earnings could range from the current
analysts' consensus of approximately
$4.50 up to $5.00 per share, excluding Hughes and any special items.
General Motors, the world's largest vehicle manufacturer, designs, builds
and markets cars and trucks worldwide,
and has been the global automotive sales leader since 1931. More information on
GM can be found at www.gm.com
.
In this press release and related comments by General Motors management, our
use of the words "expect,"
"anticipate," "estimate," "forecast," "objective," "plan," "goal," "target," and
similar expressions is intended to
identify forward looking statements. While these statements represent our
current judgment on what the future may
hold, and we believe these judgments are reasonable, actual results may differ
materially due to numerous
important factors that are described in GM's most recent report on SEC Form 10-K
(at page II-18) which may be
revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such
factors include, among others,
the following: changes in economic conditions, currency exchange rates or
political stability; shortages of fuel, labor
strikes or work stoppages;
market acceptance of the corporation's new products; significant changes in the
competitive environment; changes in
laws, regulations and tax rates; and, the ability of the corporation to achieve
reductions in cost and employment
levels to realize production efficiencies and implement capital expenditures at
levels and times planned by
management.
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
Management believes that the adjusted information set forth
herein is useful to investors as it represents how Management
views the results of operations and cash of the Corporation and,
therefore, is the basis on which internal evaluation metrics are
determined. The internal evaluation metrics are those used by the
Corporation's Board of Directors to evaluate Management.
Three Months Ended Year to Date
June 30, 2003 June 30, 2003
-------------- --------------
Net Net
Income EPS Income EPS
------ ----- ------ -----
Net Income $901 $1.58 $2,384 $4.29
Gain on Sale of GM Defense (A) - - (505) (0.90)
--- ---- ----- ----
Adjusted Income $901 $1.58 $1,879 $3.39
=== ==== ===== ====
(A) The Gain on Sale of GM Defense relates to the sale of GM's
light armored vehicle business to General Dynamics Corporation
for net proceeds of approximately $1.1 billion.
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
Three Months Ended Year to Date
June 30, 2002 June 30, 2002
-------------- --------------
Net Net
Income EPS Income EPS
------ ----- ------ -----
Reported $1,292 $2.43 $1,520 $3.02
GME End of Life
Vehicle Charge (B) 55 0.10 55 0.10
GME Restructuring Charge (C) - - 407 0.72
Hughes Space Shuttle
Settlement (D) - - (59) (0.04)
Hughes GECC Contractual
Dispute (E) - - 51 0.03
Hughes Loan Guarantee
Charge (F) - - 18 0.01
----- ---- ----- ----
Adjusted $1,347 $2.53 $1,992 $3.84
===== ==== ===== ====
(B) The GME End of Life Vehicle Charge relates to the European
Union's directive requiring member states to enact legislation
regarding end-of-life vehicles to be the responsibility of
manufacturers for dismantling and recycling vehicles they
have sold.
(C) The GME Restructuring Charge relates to the initiative
implemented in the first quarter of 2002 to improve the
competitiveness of GM's automotive operations in Europe.
(D) The Hughes Space Shuttle Settlement relates to the favorable
resolution of a lawsuit that was filed against the U.S.
government on March 22, 1991, based upon the National
Aeronautics and Space Administration's (NASA) breach of
contract to launch ten satellites on the Space Shuttle.
(E) The Hughes GECC Contractual Dispute relates to an expected
loss associated with a contractual dispute with General
Electric Capital Corporation.
(F) The Hughes Loan Guarantee Charge relates to a loan
guarantee for a Hughes Network Systems' affiliate in India.
General Motors Corporation
Summary Corporate Financial Results
Second Quarter Year to Date
-------------- --------------
2003 2002 2003 2002
---- ---- ---- ----
Total net sales and
revenues ($Mil's) $48,308 $48,339 $97,673 $94,553
Adjusted $48,308 $48,339 $96,859 $94,582
Adjusted excluding Hughes
(Automotive and Financing)$45,919 $46,098 $92,243 $90,300
Net income ($Mil's) $901 $1,292 $2,384 $1,520
Adjusted $901 $1,347 $1,879 $1,992
Adjusted excluding Hughes $879 $1,503 $1,911 $2,294
Net margin
(net income / total net
sales and revenues) 1.9% 2.7% 2.4% 1.6%
Adjusted 1.9% 2.8% 1.9% 2.1%
Adjusted excluding Hughes 1.9% 3.3% 2.1% 2.5%
Earnings per share
Basic $1-2/3 $1.58 $2.48 $4.30 $3.06
Diluted $1-2/3 $1.58 $2.43 $4.29 $3.02
Basic Class H $0.02 $(0.14) $(0.02) $(0.27)
Diluted Class H $0.02 $(0.14) $(0.02) $(0.27)
Adjusted earnings per share
Basic $1-2/3 $1.58 $2.58 $3.39 $3.90
Diluted $1-2/3 $1.58(1) $2.53 $3.39 $3.84
Diluted $1-2/3
excluding Hughes $1.57 $2.63 $3.41 $4.04
Basic Class H $0.02 $(0.14) $(0.02) $(0.27)
Diluted Class H $0.02 $(0.14) $(0.02) $(0.27)
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 561 560 561 560
Diluted shares 561 572 561 568
Cash dividends per share
of common stocks
GM $1-2/3 par value $0.50 $0.50 $1.00 $1.00
Book value per share of
common stocks at June 30
GM $1-2/3 par value $13.27 $27.52
GM Class H $2.65 $5.50
ACO total cash & marketable
securities at June 30
($Bil's') $23.5 $15.4
Cash in short-term VEBA $3.4 $3.0
---- ----
ACO total cash & marketable
securities plus short-term $26.9 $18.4
VEBA
Less: Hughes cash & marketable
securities $3.2 $0.8
--- ---
Total Automotive cash &
Marketable securities plus
Short-term VEBA $23.7 $17.6
==== ====
Automotive, Communication Services
and Other Operations ($Mil's)
Depreciation $1,337 $1,140 $2,568 $2,266
Amortization of special tools 651 622 1,353 1,251
Amortization of intangible
Assets 29 3 58 12
----- ----- ----- -----
Total $2,017 $1,765 $3,979 $3,529
===== ===== ===== =====
See reconciliation of adjusted financial results and footnotes.
General Motors Corporation
Summary Corporate Financial Results
Second Quarter
2003 and 2002
--------------
(Dollars in millions)
Total net sales and Reported Special Items Adjusted
revenues -------- ------------ --------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
GMNA $28,558 $30,576 $ - $ - $28,558 $30,576
GME 7,303 6,001 - - 7,303 6,001
GMLAAM 1,119 1,306 - - 1,119 1,306
GMAP 1,267 1,129 - - 1,267 1,129
------ ------ -- -- ------ ------
Total GMA 38,247 39,012 - - 38,247 39,012
Hughes 2,389 2,241 - - 2,389 2,241
Other 96 465 - - 96 465
------ ------ -- -- ------ ------
Total ACO 40,732 41,718 - - 40,732 41,718
------ ------ -- -- ------ ------
GMAC 7,580 6,599 - - 7,580 6,599
Other Financing (4) 22 - - (4) 22
------ ------ -- -- ------ ------
Total FIO 7,576 6,621 - - 7,576 6,621
------ ------ -- -- ------ ------
Total net sales and
revenues $48,308 $48,339 $ - $ - $48,308 $48,339
====== ====== == == ====== ======
Income / (expense)
before income taxes and
minority interest
GMNA $90 $1,781 $ - $ - $90 $1,781
GME (34) (244) - 85 (34) (159)
GMLAAM (123) (97) - - (123) (97)
GMAP 11 (31) - - 11 (31)
----- ----- -- -- ----- -----
Total GMA (56) 1,409 - 85 (56) 1,494
Hughes 89 (230) - - 89 (230)
Other (357) (88) - - (357) (88)
----- ----- -- -- ----- -----
Total ACO (324) 1,091 - 85 (324) 1,176
----- ----- -- -- ----- -----
GMAC 1,331 698 - - 1,331 698
Other Financing 13 (8) - - 13 (8)
----- ----- -- -- ----- -----
Total FIO $1,344 690 - - 1,344 690
Total income / ----- ----- -- -- ----- -----
(expense) before
income taxes and
minority interests $1,020 $1,781 $ - $85 $1,020 $1,866
===== ===== == == ===== =====
General Motors Corporation
Summary Corporate Financial Results
Second Quarter
2003 and 2002
---------------
(Dollars in millions) Reported Special Items Adjusted
-------- ------------ --------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
Net income
GMNA $83 $1,277 $ - $ - $83 $1,277
GME (3) (170) - 55 (3) (115)
GMLAAM (103) (73) - - (103) (73)
GMAP 163 39 - - 163 39
----- ----- -- -- ----- -----
Total GMA 140 1,073 - 55 140 1,128
Hughes (2) 22 (156) - - 22 (156)
Other (104) (57) - - (104) (57)
----- ----- -- -- ----- -----
Total ACO 58 860 - 55 58 915
----- ----- -- -- --- -----
GMAC 834 431 - - 834 431
Other Financing 9 1 - - 9 1
----- ----- -- -- ----- -----
Total FIO 843 432 - - 843 432
----- ----- -- -- ----- -----
Net income (loss) $901 $1,292 $ - $55 $901 $1,347
===== ===== == == ===== =====
Income tax expense
(benefit)
GMNA $25 $518 $ - $ - $25 $518
GME (13) (51) - 30 (13) (21)
GMLAAM (25) (31) - - (25) (31)
GMAP 8 (9) - - 8 (9)
--- --- -- -- --- ---
Total GMA (5) 427 - 30 (5) 457
Hughes 21 (93) - - 21 (93)
Other (251) (23) - - (251) (23)
--- --- -- -- --- ---
Total ACO (235) 311 - 30 (235) 341
--- --- -- -- --- ---
GMAC 496 254 - - 496 254
Other Financing 4 (2) - - 4 (2)
--- --- -- -- --- ---
Total FIO 500 252 - - 500 252
--- --- -- -- --- ---
Income tax expense
(benefit) $265 $563 $ - $30 $265 $593
=== === == == === ===
Effective tax rate
GMNA 27.8% 29.1% - - 27.8% 29.1%
GME 38.2% 20.9% - 35.3% 38.2% 13.2%
GMLAAM 20.3% 32.0% - - 20.3% 32.0%
GMAP 72.7% 29.0% - - 72.7% 29.0%
Hughes 23.6% 40.4% - - 23.6% 40.4%
GMAC 37.3% 36.4% - - 37.3% 36.4%
Total GM Corp. 26.0% 31.6% - 35.3% 26.0% 31.8%
Equity income (loss)
and minority interests
GMNA $18 $14 $ - $ - $18 $14
GME 18 23 - - 18 23
GMLAAM (5) (7) - - (5) (7)
GMAP 160 61 - - 160 61
--- -- -- -- --- --
Total GMA $191 $91 $ - $ - $191 $91
=== == == == === ==
General Motors Corporation
Summary Corporate Financial Results
Year to Date
2003 and 2002
--------------
(Dollars in millions)
Total net sales and Reported Special Items Adjusted
revenues -------- ------------ --------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
GMNA $58,521 $59,915 $ - $ - $58,521 $59,915
GME 13,925 11,585 - - 13,925 11,585
GMLAAM 2,164 2,607 - - 2,164 2,607
GMAP 2,414 2,186 - - 2,414 2,186
------ ------ -- -- ------ ------
Total GMA 77,024 76,293 - - 77,024 76,293
Hughes 4,616 4,253 - 29 4,616 4,282
Other 1,134 945 (814) - 320 945
------ ------ --- -- ------ ------
Total ACO 82,774 81,491 (814) 29 81,960 81,520
------ ------ --- -- ------ ------
GMAC 14,910 12,952 - - 14,910 12,952
Other Financing (11) 110 - - (11) 110
------ ------ --- -- ------ ------
Total FIO 14,899 13,062 - - 14,899 13,062
------ ------ --- -- ------ ------
Total net sales and
revenues $97,673 $94,553 $(814) $29 $96,859 $94,582
====== ====== === == ====== ======
Income / (expense)
before income taxes and
minority interest
GMNA $829 $2,719 $ - $ - $829 $2,719
GME (148) (1,042) - 726 (148) (316)
GMLAAM (140) (138) - - (140) (138)
GMAP 30 (44) - - 30 (44)
----- ----- --- --- ----- -----
Total GMA 571 1,495 - 726 571 2,221
Hughes 39 (461) - 17 39 (444)
Other 92 (323) (814) - (722) (323)
----- ----- --- --- ----- -----
Total ACO 702 711 (814) 743 (112) 1,454
----- ----- --- --- ----- -----
GMAC 2,478 1,434 - - 2,478 1,434
Other Financing (12) (10) - - (12) (10)
----- ----- --- --- ----- -----
Total FIO 2,466 1,424 - - 2,466 1,424
Total income / ----- ----- --- --- ----- -----
(expense) before
income taxes and
minority interests $3,168 $2,135 $(814) $743 $2,354 $2,878
===== ===== === === ===== =====
General Motors Corporation
Summary Corporate Financial Results
Year to Date
2003 and 2002
---------------
(Dollars in millions) Reported Special Items Adjusted
-------- ------------ --------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
Net income
GMNA $631 $1,931 $ - $ - $631 $1,931
GME (68) (702) - 462 (68) (240)
GMLAAM (115) (113) - - (115) (113)
GMAP 238 46 - - 238 46
----- ----- --- --- --- -----
Total GMA 686 1,162 - 462 686 1,624
Hughes (2) (32) (312) - 10 (32) (302)
Other 205 (199) (505) - (300) (199)
----- ----- --- --- ----- -----
Total ACO 859 651 (505) 472 354 1,123
----- ----- --- --- ----- -----
GMAC 1,533 870 - - 1,533 870
Other Financing (8) (1) - - (8) (1)
----- ----- --- --- ----- -----
Total FIO 1,525 869 - - 1,525 869
----- ----- --- --- ----- -----
Net income (loss) $2,384 $1,520 $(505) $472 $1,879 $1,992
===== ===== === === ===== =====
Income tax expense
(benefit)
GMNA $216 $790 $ - $ - $216 $790
GME (56) (311) - 264 (56) (47)
GMLAAM (32) (32) - - (32) (32)
GMAP 19 (9) - - 19 (9)
--- --- --- --- --- ---
Total GMA 147 438 - 264 147 702
Hughes (5) (185) - 7 (5) (178)
Other (151) (102) (309) - (460) (102)
--- --- --- --- --- ---
Total ACO (9) 151 (309) 271 (318) 422
--- --- --- --- --- ---
GMAC 934 539 - - 934 539
Other Financing (4) (2) - - (4) (2)
--- --- --- --- --- ---
Total FIO 930 537 - - 930 537
--- --- --- --- --- ---
Income tax expense
(benefit) $921 $688 $(309) $271 $612 $959
=== === === === === ===
Effective tax rate
GMNA 26.1% 29.1% - - 26.1% 29.1%
GME 37.8% 29.8% - 36.4% 37.8% 14.9%
GMLAAM 22.9% 23.2% - - 22.9% 23.2%
GMAP 63.3% 20.5% - - 63.3% 20.5%
Hughes (12.8%) 40.1% - 41.2% (12.8%) 40.1%
GMAC 37.7% 37.6% - - 37.7% 37.6%
Total GM Corp. 29.1% 32.2% 38.0% 36.5% 26.0% 33.3%
Equity income (loss)
and minority interests
GMNA $18 $2 $- $- $18 $2
GME 24 29 - - 24 29
GMLAAM (7) (7) - - (7) (7)
GMAP 227 81 - - 227 81
--- --- --- --- --- ---
Total GMA $262 $105 $ - $ - $262 $105
=== === === === === ===
General Motors Corporation
Operating Statistics
Second Quarter Year to Date
-------------- --------------
2003 2002 2003 2002
---- ---- ---- ----
(units in thousands)
Worldwide Wholesale Sales
United States - Cars 487 574 986 1,073
United States - Trucks 761 750 1,518 1,417
----- ----- ----- -----
Total United States 1,248 1,324 2,504 2,490
Canada, Mexico, and Other 185 233 367 429
----- ----- ----- -----
Total GMNA 1,433 1,557 2,871 2,919
GME 447 437 873 861
GMLAAM 122 159 243 314
GMAP 139 86 282 194
----- ----- ----- -----
Total Worldwide 2,141 2,239 4,269 4,288
===== ===== ===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 220 213 391 399
Chevrolet - Trucks 505 481 878 945
Pontiac 120 151 227 269
GMC 155 137 263 264
Buick 85 107 168 189
Oldsmobile 34 42 68 85
Saturn 72 88 147 146
Cadillac 49 50 96 90
Other 26 15 46 27
----- ----- ----- -----
Total United States 1,266 1,284 2,284 2,414
Canada, Mexico, and Other 179 208 331 388
----- ----- ----- -----
Total GMNA 1,445 1,492 2,615 2,802
GME 477 471 951 937
GMLAAM 127 143 254 281
GMAP 184 178 350 335
----- ----- ----- -----
Total Worldwide 2,233 2,284 4,170 4,355
===== ===== ===== =====
Market Share
United States - Cars 24.8% 26.3% 24.9% 25.6%
United States - Trucks 30.4% 29.8% 29.4% 30.5%
Total United States 27.9% 28.1% 27.3% 28.1%
Total North America 27.2% 27.6% 26.7% 27.8%
Total Europe 9.4% 9.1% 9.5% 9.2%
Latin America 15.7% 15.4% 15.8% 15.3%
Asia and Pacific 4.9% 4.9% 4.4% 4.6%
Total Worldwide 15.0% 15.1% 14.2% 14.8%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 29.5% 29.3% 29.8% 27.4%
% Fleet Sales - Trucks 15.1% 13.7% 14.9% 12.0%
Total Vehicles 21.0% 20.9% 21.3% 18.8%
Retail Lease as % of Retail Sales
Total Smartlease
and Smartbuy 7.3% 15.1%
Days Supply of Inventory
at June 30
United States - Cars 73 57
United States - Trucks 98 78
GMNA Capacity Utilization
(2 shift rated) 87.4% 92.0% 89.2% 87.7%
GMNA Vehicle Revenue
Per Unit $18,565 $18,385
See footnotes
General Motors Corporation
Operating Statistics
Second Quarter Year to Date
-------------- --------------
2003 2002 2003 2002
---- ---- ---- ----
GMAC's U.S. Cost of Borrowing 3.50% 4.14%
Current Debt Spreads Over
U.S. Treasuries
2 Year 255 bp 165 bp
5 Year 330 bp 185 bp
10 Year 370 bp 230 bp
Worldwide Employment
at June 30 (in 000's)
United States Hourly 120 124
United States Salary 41 41
--- ---
Total United States 161 165
Canada, Mexico, and Other 31 34
--- ---
GMNA 192 199
GME 64 69
GMLAAM 23 24
GMAP 13 11
Hughes 11 12
GMAC 31 31
Other 7 11
--- ---
Total 341 357
=== ===
Worldwide Payrolls ($Mil's) $5,331 $5,385 $10,720 $10,418
Footnotes:
---------
(1) This amount is comparable to First Call analysts' consensus.
(2) 2002 amounts exclude Hughes Series A Preferred Stock dividends
paid to General Motors and Hughes write off of goodwill for
DirecTV Latin America and DirecTV Broadband recorded as a
cumulative effect of accounting change in the first quarter
of 2002 in Hughes' stand alone financial statements. In
accordance with SFAS 142, GM evaluated the carrying value of
goodwill associated with its Direct-to-Home Broadcast
reporting unit in the aggregate and determined that the
goodwill was not impaired.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------- --------
2003 2002 2003 2002
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and revenues $48,308 $48,339 $97,673 $94,553
------ ------ ------ ------
Cost of sales and other
expenses 38,940 38,396 78,323 76,797
Selling, general, and
administrative expenses 6,083 6,090 11,789 11,691
Interest expense 2,265 2,072 4,393 3,930
------ ------ ------ ------
Total costs and expenses 47,288 46,558 94,505 92,418
------ ------ ------ ------
Income before income taxes
and minority interests 1,020 1,781 3,168 2,135
Income tax expense 265 563 921 688
Equity income and minority
interests 146 74 137 73
--- ----- ----- -----
Net income 901 1,292 2,384 1,520
Dividends on preference stocks - (23) - (47)
--- ----- ----- -----
Earnings attributable to
common stocks $901 $1,269 $2,384 $1,473
=== ===== ===== =====
Basic earnings (losses) per
share attributable to common
stocks
Earnings per share
attributable to $1-2/3 par
value $1.58 $2.48 $4.30 $3.06
==== ==== ==== ====
Earnings (losses) per share
attributable to Class H $0.02 $(0.14) $(0.02) $(0.27)
==== ==== ==== ====
Earnings (losses) per share
attributable to common stocks
assuming dilution
Earnings per share
attributable to $1-2/3 par
value $1.58 $2.43 $4.29 $3.02
==== ==== ==== ====
Earnings (losses) per share
attributable to Class H $0.02 $(0.14) $(0.02) $(0.27)
==== ==== ==== ====
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2003 2002 2003 2002
---- ---- ---- ----
(dollars in millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS
Total net sales and revenues $40,732 $41,718 $82,774 $81,491
------ ------ ------ ------
Cost of sales and other
expenses 36,839 36,461 74,152 72,672
Selling, general, and
administrative expenses 3,781 3,818 7,122 7,508
------ ------ ------ ------
Total costs and expenses 40,620 40,279 81,274 80,180
------ ------ ------ ------
Interest expense 402 302 723 464
Net expense from transactions
with Financing and Insurance
Operations 34 46 75 136
--- ----- --- ---
Income (loss) before income
taxes and minority interests (324) 1,091 702 711
Income tax expense (benefit) (235) 311 (9) 151
Equity income and minority
interests 147 80 148 91
--- ----- --- ---
Net income - Automotive,
Communications Services, and
Other Operations $58 $860 $859 $651
== === === ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $7,576 $6,621 $14,899 $13,062
----- ----- ------ ------
Interest expense 1,863 1,770 3,670 3,466
Depreciation and amortization
expense 1,578 1,353 3,084 2,714
Operating and other expenses 2,068 1,951 4,245 3,856
Provisions for financing and
insurance losses 757 903 1,509 1,738
----- ----- ------ ------
Total costs and expenses 6,266 5,977 12,508 11,774
----- ----- ------ ------
Net income from transactions
with Automotive, Communications
Services, and Other Operations ( 34) (46) (75) (136)
----- --- ------ -----
Income before income taxes
and minority interests 1,344 690 2,466 1,424
Income tax expense 500 252 930 537
Equity loss and minority
interests (1) (6) (11) (18)
----- --- ----- -----
Net income - Financing and
Insurance Operations $843 $432 $1,525 $869
=== === ===== ===
The above Supplemental Information is intended to facilitate analysis
of General Motors Corporation's businesses: (1) Automotive,
Communications Services, and Other Operations; and (2) Financing and
Insurance Operations.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, June 30,
2003 Dec, 31, 2002
(Unaudited) 2002 (Unaudited)
-------- ------- --------
ASSETS (dollars in millions)
Cash and cash equivalents $31,009 $21,449 $18,363
Marketable securities 18,777 16,825 14,304
------ ------ ------
Total cash and marketable securities 49,786 38,274 32,667
Finance receivables - net 153,600 134,647 119,636
Accounts and notes receivable (less
allowances) 19,420 15,715 12,677
Inventories (less allowances) 11,093 9,967 9,757
Deferred income taxes 39,116 39,865 28,702
Equipment on operating leases - (less
accumulated depreciation) 36,576 32,988 33,598
Equity in net assets of nonconsolidated
associates 5,249 5,044 5,115
Property - net 38,384 37,514 36,451
Intangible assets - net 18,091 17,954 17,061
Other assets 39,530 37,028 40,665
------- ------- -------
Total assets $410,845 $368,996 $336,329
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable (principally trade) $27,402 $27,452 $26,439
Notes and loans payable 232,150 201,940 177,035
Postretirement benefits other than
pensions 38,618 38,187 37,844
Pensions 23,968 22,762 9,451
Deferred income taxes 7,359 7,178 6,851
Accrued expenses and other liabilities 69,976 63,829 57,230
------- ------- -------
Total liabilities 399,473 361,348 314,850
Minority interests 991 834 788
Stockholders' equity
$1-2/3 par value common stock
(outstanding, 560,712,564;
560,447,797; and 560,223,424 shares) 935 936 936
Class H common stock (outstanding,
1,108,139,876; 958,284,272;
and 958,005,494 shares) 111 96 96
Capital surplus (principally additional
paid-in capital) 22,815 21,583 21,557
Retained earnings 11,855 10,031 10,376
------ ------ ------
35,716 32,646 32,965
Subtotal
Accumulated foreign currency translation
adjustments (2,292) (2,784) (2,770)
Net unrealized loss on derivatives (205) (205) (188)
Net unrealized gains on securities 612 372 268
Minimum pension liability adjustment (23,450) (23,215) (9,584)
------ ------ ------
(25,335) (25,832) (12,274)
------ ------ ------
Accumulated other comprehensive loss
10,381 6,814 20,691
------- ------ -------
Total stockholders' equity
Total liabilities and stockholders' equity $410,845 $368,996 $336,329
======= ======= =======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
June 30, June 30,
2003 Dec, 31, 2002
(Unaudited) 2002 (Unaudited)
-------- ------- --------
ASSETS (dollars in millions)
Automotive, Communications Services, and
Other Operations
Cash and cash equivalents $18,582 $13,291 $14,421
Marketable securities 4,913 2,174 1,014
------- ------- -------
Total cash and marketable securities 23,495 15,465 15,435
Accounts and notes receivable (less
allowances) 6,584 5,861 5,686
Inventories (less allowances) 11,093 9,967 9,757
Equipment on operating leases - (less
accumulated depreciation) 5,946 5,305 4,390
Deferred income taxes and other current
assets 10,917 10,816 8,730
------ ------ -------
Total current assets 58,035 47,414 43,998
Equity in net assets of nonconsolidated
associates 5,249 5,044 5,115
Property - net 36,407 35,693 34,738
Intangible assets - net 14,715 14,611 13,763
Deferred income taxes 30,496 31,431 22,138
Other assets 8,016 7,781 17,307
------- ------- -------
Total Automotive, Communications Services,
and Other Operations assets 152,918 141,974 137,059
Financing and Insurance Operations
Cash and cash equivalents 12,427 8,158 3,942
Investments in securities 13,864 14,651 13,290
Finance receivables - net 153,600 134,647 119,636
Investment in leases and other receivables 41,470 35,517 34,168
Other assets 36,566 34,049 28,234
Net receivable from Automotive,
Communications Services, and
Other Operations 1,128 1,089 638
------- ------- -------
Total Financing and Insurance Operations
assets 259,055 228,111 199,908
------- ------- -------
Total assets $411,973 $370,085 $336,967
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive, Communications Services, and
Other Operations
Accounts payable (principally trade) $21,351 $20,169 $19,459
Loans payable 705 1,516 1,545
Accrued expenses 43,720 40,518 36,513
Net payable to Financing and Insurance
Operations 1,128 1,089 638
------ ------ ------
Total current liabilities 66,904 63,292 58,155
Long-term debt 20,513 16,651 16,831
Postretirement benefits other than pensions 34,674 34,275 33,990
Pensions 23,901 22,709 9,410
Other liabilities and deferred income taxes 15,634 15,461 14,506
------- ------- -------
Total Automotive, Communications Services,
and Other Operations liabilities 161,626 152,388 132,892
Financing and Insurance Operations
Accounts payable 6,051 7,283 6,980
Debt 210,932 183,773 158,659
Other liabilities and deferred income taxes 21,992 18,993 16,957
------- ------- -------
Total Financing and Insurance Operations
liabilities 238,975 210,049 182,596
------- ------- -------
Total liabilities 400,601 362,437 315,488
Minority interests 991 834 788
Stockholders' equity
$1-2/3 par value common stock (outstanding,
560,712,564; 560,447,797; and
560,223,424 shares) 935 936 936
Class H common stock (outstanding,
1,108,139,876; 958,284,272;
and 958,005,494 shares) 111 96 96
Capital surplus (principally additional
paid-in capital) 22,815 21,583 21,557
Retained earnings 11,855 10,031 10,376
------ ------ ------
Subtotal 35,716 32,646 32,965
Accumulated foreign currency translation
adjustments (2,292) (2,784) (2,770)
Net unrealized loss on derivatives (205) (205) (188)
Net unrealized gains on securities 612 372 268
Minimum pension liability adjustment (23,450) (23,215) (9,584)
------ ------ ------
Accumulated other comprehensive loss (25,335) (25,832) (12,274)
------ ------ ------
Total stockholders' equity 10,381 6,814 20,691
------ ------ ------
Total liabilities and stockholders' equity $411,973 $370,085 $336,967
======= ======= =======
The above Supplemental Information is intended to facilitate analysis
of General Motors Corporation's businesses: (1) Automotive,
Communications Services, and Other Operations; and (2) Financing
and Insurance Operations.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
------------------------
2003 2002
---- ----
(dollars in millions)
Net cash provided by operating activities $13,079 $12,876
Cash flows from investing activities
Expenditures for property (3,325) (3,540)
Investments in marketable securities -
acquisitions (7,200) (24,374)
Investments in marketable securities -
liquidations 5,804 22,310
Net originations and purchases of mortgage
servicing rights (1,152) (959)
Increase in finance receivables (71,636) (67,200)
Proceeds from sales of finance receivables 49,635 56,852
Operating leases - acquisitions (6,728) (7,053)
Operating leases - liquidations 5,668 5,016
Investments in companies, net of cash
acquired (70) (274)
Proceeds from sale of business units 1,076 -
Other (1,111) 205
------ ------
Net cash used in investing activities (29,039) (19,017)
------ ------
Cash flows from financing activities
Net decrease in loans payable 825 (632)
Long-term debt - borrowings 42,622 18,473
Long-term debt - repayments (17,803) (11,407)
Repurchases of common and preference stocks - (97)
Proceeds from issuing common stocks - 69
Proceeds from sales of treasury stocks - 19
Cash dividends paid to stockholders (560) (607)
------ -----
Net cash provided by financing activities 25,084 5,818
------ -----
Effect of exchange rate changes on cash and
cash equivalents 436 131
------ ------
Net decrease in cash and cash equivalents 9,560 (192)
Cash and cash equivalents at beginning of
the period 21,449 18,555
------ ------
Cash and cash equivalents at end of the
period $31,009 $18,363
====== ======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Automotive, Comm. Financing and
Serv. and Other Insurance
----------------- --------------
Six Months Ended June 30,
-----------------------------------
2003 2002 2003 2002
---- ---- ---- ----
(dollars in millions)
Net cash provided by operating
activities $7,407 $5,580 $5,672 $7,296
Cash flows from investing activities
Expenditures for property (2,941) (3,494) (384) (46)
Investments in marketable securities
- acquisitions (2,839) (802) (4,361) (23,572)
Investments in marketable securities
- liquidations 100 578 5,704 21,732
Net originations and purchases of
mortgage servicing rights - - (1,152) (959)
Increase in finance receivables - - (71,636) (67,200)
Proceeds from sales of finance
receivables - - 49,635 56,852
Operating leases - acquisitions - - (6,728) (7,053)
Operating leases - liquidations - - 5,668 5,016
Investments in companies, net of cash
acquired (70) (124) - (150)
Proceeds from sale of business units 1,076 - - -
Other (175) 510 (936) (305)
------ ----- ------ ------
Net cash used in investing activities (4,849) (3,332) (24,190) (15,685)
----- ----- ------ ------
Cash flows from financing activities
Net increase (decrease) in loans
payable (943) (857) 1,768 225
Long-term debt - borrowings 4,060 6,186 38,562 12,287
Long-term debt - repayments (236) (183) (17,567) (11,224)
Repurchase of common and preference
stocks - (97) - -
Proceeds from issuing common stocks - 69 - -
Proceeds from sales of treasury stocks - 19 - -
Cash dividends paid to stockholders (560) (607) - -
----- ---- ------ -----
Net cash provided by (used in)
financing activities 2,321 4,530 22,763 1,288
----- ----- ------ -----
Effect of exchange rate changes on
cash and cash equivalents 373 130 63 1
Net transactions with
Automotive/Financing Operations 39 (919) (39) 919
------ ----- ------ ------
Net increase (decrease) in cash and
cash equivalents 5,291 5,989 4,269 (6,181)
Cash and cash equivalents at
beginning of the period 13,291 8,432 8,158 10,123
------ ------ ------ ------
Cash and cash equivalents at end of
the period $18,582 $14,421 $12,427 $3,942
====== ====== ====== =====
The above Supplemental Information is intended to facilitate analysis
of General Motors Corporation's businesses: (1) Automotive,
Communications Services, and Other Operations; and (2) Financing
and Insurance Operations.
SOURCE General Motors Corporation
-0- 07/17/2003 P
/CONTACT: Mark Tanner, +1-313-665-3146, mark.tanner@gm.com , or Jerry
Dubrowski, +1-212-418-6261,
jerry.dubrowski@gm.com , both of General Motors Corporation /
/Web site: http://media.gm.com /
http://www.gm.com /
(GM GMH)
END