GM Reports Third Quarter Net Income of $425 Million, or $0.79 Per Share
Adjusted net income $448 million, or $0.80 per share, excluding Hughes
Automotive operations profitable, global market share up in third quarter
Substantial contributions, strong asset returns bolster U.S. pension plans
DETROIT, Oct. 15 -- General Motors Corp. (NYSE: GM, GMH) today reported net income of
$425 million, or $0.79 per diluted share of GM's $1-2/3 par value common stock, in the third quarter of 2003,
compared with a net loss of $804 million, or $1.42 a share, in the third quarter of 2002. Total net sales and revenues
increased 5.4 percent to $45.9 billion.
GM's adjusted income, which excludes results from Hughes, totaled $448 million, or $0.80 per share, in the third
quarter of 2003. GM's adjusted net income in the third quarter of 2002, excluding special items and Hughes, totaled
$696 million, or $1.24 per share. The third-quarter-2002 results included special items totaling an unfavorable $1.42
billion, or $2.62 per share. There were no special items in the third quarter of 2003.
"On balance, General Motors posted solid business results despite ongoing pricing pressure, lower production
volumes and increased pension and health care costs," said GM Chairman and Chief Executive Officer Rick
Wagoner. "And the accelerating U.S. economy and the enthusiastic response to our new products give us reason for
optimism as we look forward."
GM AUTOMOTIVE OPERATIONS
GM's global automotive operations earned $34 million in the third quarter of 2003, compared with $368 million in
the year-ago quarter. GM North America, GM Europe and GM Asia Pacific each reported market-share gains during
the third quarter. GM's global market share rose to 15.2 percent in the third quarter of 2003 from 15.1 percent in the
third quarter of 2002.
Net income at GM North America (GMNA) totaled $128 million versus $533 million in the third quarter of 2002.
Improvements in sales mix, material-cost performance, and productivity were offset by a production decline of
nearly 5 percent, intense pricing pressure and increased pension and health care expense, versus the year-ago period.
The results were also affected by a $55 million favorable adjustment in GMNA's recall reserves, reflecting reduced
costs associated with previously announced vehicle-recall programs, and a $27 million unfavorable adjustment for
the adoption of a new accounting interpretation, FIN 46, which relates to the consolidation of variable interest
entities.
GM's U.S. market share rose to 28.7 percent in the quarter, compared with 28.0 percent in the same period last
year and 27.9 percent in the second quarter of 2003.
GM continued to set numerous sales records during the third quarter. In the United States, GM established a new
industry sales record for total trucks, sport utilities, and full-sized pickups. Through the first nine months of 2003,
GM sold 920,573 sport-utility vehicles, more than any other manufacturer has previously sold in a full calendar year.
Chevrolet continued to make progress with sales rising 10 percent in the third quarter, and Cadillac is on pace to
surpass 200,000 annual vehicle sales for the first time since 1994.
"We expect that our sales momentum will continue to build, based on great new vehicles that are just arriving in
dealers' showrooms now such as the Chevrolet Malibu and SSR, Cadillac XLR and SRX, and the Buick Rainier,"
Wagoner said. "In addition, we will launch 17 more new car and truck models over the next year."
During the quarter GM reached an agreement with the United Auto Workers on a new four-year contract.
"We believe this agreement very effectively addresses the needs of our represented employees and the requirement
that we continue to improve our competitive position. Our close collaboration with the UAW remains an important
aspect of our steady improvement in quality and productivity," Wagoner said.
GM Europe (GME) reported a loss of $152 million in the third quarter of 2003, an improvement from the $180
million loss in the year-ago period. Continued progress in GME's cost-reduction efforts were partially offset by
unfavorable currency-exchange rates.
"Our market share in Europe has improved for the fourth consecutive quarter. We expect this to continue as we
launch new products, such as the highly anticipated Opel Astra, early next year," Wagoner said.
GM Asia-Pacific reported a profit of $162 million in the third quarter of 2003 compared with earnings of $76
million a year ago, led by continued strong performance at Shanghai GM and improved equity earnings from GM's
Japanese automotive alliances. GM Asia-Pacific wholesale vehicle sales rose 10 percent in the third quarter, led by
record sales in China.
"Our results in Asia were very encouraging. We are well positioned to participate in the continued growth in the
region as a result of our joint ventures in China and South Korea," Wagoner said.
GM Latin America/Africa/Mid-East reported a loss of $104 million in the third quarter of 2003 compared with a
loss of $61 million a year ago. Results were negatively affected by unfavorable economic and market conditions in
Brazil and lower sales in Venezuela.
GMAC
GMAC reported earnings of $630 million, up more than 30 percent from the $476 million earned in the third
quarter of 2002. Financing operations remained strong as lower credit provisions more than offset narrower net-
interest margins. Results from insurance operations more than doubled compared to the prior year, when earnings
were adversely affected by the write-down of certain investment securities. Mortgage operations generated the
biggest year-over-year improvement reflecting higher origination and securitization volumes in both the residential
and commercial mortgage sectors.
"Once again, GMAC turned in an outstanding performance," Wagoner said. "GMAC is firing on all cylinders,
with all three business sectors contributing to a record third quarter."
HUGHES
Hughes reported a loss of $23 million in the third quarter of 2003, compared with a loss of $81 million in the year
ago period. Revenue rose to $2.6 billion in the third quarter of 2003, up from $2.2 billion in the same quarter last
year, led by the growing subscriber base of DIRECTV. Total DIRECTV U.S. subscriptions increased approximately
326,000 from the third
quarter of 2002 to 11.9 million.
Earlier this month, GM stockholders voted to approve transactions that would result in the split off of Hughes and
the acquisition of 34 percent of Hughes common stock by News Corp. (NYSE: NWS, NWS.A). In September, GM
received a private-letter ruling from the Internal Revenue Service confirming that the distribution of Hughes
common stock to the holders of GM Class H common stock would be tax-free to GM and its Class H stockholders
for U.S.
federal income-tax purposes. The transactions remain subject to certain regulatory clearances, including antitrust
clearance from the U.S. Department of Justice and action by the U.S. Federal Communications Commission. GM
expects to complete the transactions in late 2003 or early 2004.
CASH AND PENSION UPDATE
Automotive cash, marketable securities, and assets of the VEBA trust invested in short-term fixed-income
securities totaled $29.3 billion at
Sept. 30, 2003, excluding financing and insurance operations and Hughes, compared with $23.7 billion on June 30,
2003.
GM contributed $5.5 billion to its U.S. pension plans in September and another $8.0 billion in early October,
bringing its year-to-date contributions to $14.4 billion. In addition, GM contributed $3 billion to the VEBA trust for
retiree-health-care benefits in the third quarter.
As a result of the contributions, GM now expects 2003 pretax pension expense will be approximately $2.6 billion,
down from the previous estimate of $2.8 billion. For 2004, GM expects pretax pension expense to decline by at
least $500 million to $2.1 billion or less. However, this reduction in pension expense will be largely offset by higher
interest expense related to the recent global debt offerings.
Through the end of the third quarter, GM's pension-plan assets earned a return of 14 percent. If asset returns
remain at or above these levels for the remainder of 2003, the funded status of GM's U.S. hourly and salaried
pension plans would improve dramatically by the end of the year and, with additional contributions, could approach
a fully funded position in the near
term.
LOOKING AHEAD
General Motors said the U.S. vehicle market continues to be strong. GM expects auto industry sales of
approximately 16.9 million units in 2003. GM is forecasting North American production of about 1.35 million
vehicles in the fourth quarter of 2003, which would bring total 2003-calendar-year production
volume to approximately 5.4 million vehicles.
GM expects to earn approximately $1.00 per share, excluding Hughes and any special items, in the fourth quarter
of 2003. As a result, GM said it would exceed its original 2003-calendar-year earnings target of $5.00 per share,
excluding special items and Hughes.
GM financial results described throughout this release exclude special items unless otherwise noted. See
Highlights for reconciliation of adjusted results to results based on Generally Accepted Accounting Principles
(GAAP).
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.
In connection with the proposed transactions, on August 21, 2003, General Motors Corporation ("GM"), Hughes
Electronics Corporation ("Hughes") and The News Corporation Limited ("News Corporation") filed definitive
materials with the Securities and Exchange Commission ("SEC"), including a Definitive Consent Solicitation
Statement of GM on Schedule 14A, a Registration Statement of
Hughes on Form S-4 and a Registration Statement of News Corporation on
Form F-4 that contain a consent solicitation statement of GM, a prospectus of Hughes and a prospectus of News
Corporation. Investors and security holders are urged to read these materials, as well as any other relevant
documents filed or that will be filed with the SEC, as they become available, because these documents contain or
will contain important information. These materials and other relevant materials (when they become available) and
any other documents filed by GM, Hughes or News Corporation with the SEC, may be obtained for free at the SEC's
website, www.sec.gov . In addition, the definitive materials contain information about how to obtain transaction-
related documents for free from GM.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall
be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as
amended.
Materials included in this document contain "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results to be materially different from historical results or from
any future results expressed or implied by such forward-looking statements. The factors that could cause actual
results of GM, Hughes and/or News Corporation to differ materially, many of which are beyond the control of GM,
Hughes or News Corporation include, but are not limited to, the following: (1) operating costs, customer loss and
business
disruption, including, without limitation, difficulties in maintaining relationships with employees, customers, clients
or suppliers, which may be greater than expected following the transaction; (2) the regulatory approvals required for
the transaction may not be obtained on the terms expected or on the anticipated schedule; (3) the effects of
legislative and regulatory changes; (4) an inability to retain necessary authorizations from the FCC;
(5) an increase in competition from cable as a result of digital cable or otherwise, direct broadcast satellite, other
satellite system operators, and other providers of subscription television services; (6) the introduction of new
technologies and competitors into the subscription television business; (7) changes in labor, programming,
equipment and capital costs; (8) future acquisitions, strategic partnerships and divestitures and the ability to access
capital to maintain financial flexibility; (9) general business and economic conditions; and (10) other risks described
from time to time in
periodic reports filed by GM, Hughes or News Corporation with the SEC. Those other risks relating to Hughes
include, but are not limited to, the uncertainties regarding the operations of DIRECTV Latin America, LLC, Hughes'
75% owned subsidiary, which is currently operating under Chapter 11 bankruptcy proceedings, and the performance
of its satellites. You are urged to consider
statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects,"
"potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," "outlook,"
"objectives," "strategy," "target," or the negative of those words or other comparable words to be uncertain and
forward-looking. This cautionary statement applies to all forward-looking statements included in this document.
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
Sept. 30, 2003 Sept. 30, 2003
-------------- --------------
Net $1-2/3 Net $1-2/3
Income EPS Income EPS
------ ----- ------ -----
Net Income $425 $0.79 $2,809 $5.08
Gain on Sale of GM Defense (A) - - (505) (0.90)
--- ---- ----- ----
Adjusted Income $425 $0.79 $2,304 $4.18
=== ==== ===== ====
(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
Sept. 30, 2002 Sept. 30, 2002
-------------- --------------
Net $1-2/3 Net $1-2/3
Income EPS Income EPS
------ ----- ------ -----
Reported ($804) ($1.42) $716 $1.63
Write-down of
Fiat Investment (A) 1,371 2.44 1,371 2.43
GMNA Production
Footprint (B) 116 0.21 116 0.20
Hughes Sale of Equity
Interests (C) (68) (0.03) (68) (0.04)
GME End of Life Vehicle
Charge (D) - - 55 0.10
GME Restructuring
Charge (E) - - 407 0.73
Hughes Space Shuttle
Settlement (F) - - (59) (0.04)
Hughes GECC Contractual
Dispute (G) - - 51 0.03
Hughes Loan Guarantee
Charge (H) - - 18 0.01
----- ---- ----- ----
Adjusted $615 $1.20 $2,607 $5.05
===== ==== ===== ====
See Notes
General Motors Corporation
List of Special Items - After Tax
(A) The Write-down of Fiat Investment relates to GM's investment
in Fiat Auto Holdings, B.V. and reflects completion of an
impairment study relating to the carrying value of that
investment, which was reduced from $2.4 billion to $220
million.
(B) The GMNA Production Footprint charge primarily relates to
costs associated with the transfer of commercial truck
production from Janesville, Wis., to Flint, Michigan.
(C) The Hughes Sale of Equity Interests relates primarily to
the Hughes investment in Thomson Multimedia S.A.
(D) The GME End of Life Vehicle Charge relates to the European
Union's directive requiring member states to enact
legislation regarding end-of-life vehicles and the
responsibility of manufacturers for dismantling and
recycling vehicles they have sold.
(E) The GME Restructuring Charge relates to the initiative
implemented in the first quarter of 2002 to improve the
competitiveness of GM's automotive operations in Europe.
(F) The Hughes Space Shuttle Settlement relates to the
favorable resolution of a lawsuit that was filed against
the U.S. government on March 22, 1991, based upon the
National Aeronautics and Space Administration's (NASA)
breach of contract to launch ten satellites on the Space
Shuttle.
(G) The Hughes GECC Contractual Dispute relates to a loss
associated with a contractual dispute with General
Electric Capital Corporation.
(H) The Hughes Loan Guarantee Charge relates to a loan
guarantee for a Hughes Network Systems' affiliate in India.
General Motors Corporation
Summary Corporate Financial Results
Third Quarter Year to Date
-------------- --------------
2003 2002 2003 2002
---- ---- ---- ----
Total net sales and
revenues ($Mil's) $45,929 $43,580 $143,602 $138,133
Adjusted $45,929 $43,605 $142,788 $138,187
Adjusted excluding Hughes
(Automotive and Financing)$43,343 $41,402 $135,586 $131,702
Net income (loss)($Mil's) $425 $(804) $2,809 $716
Adjusted $425 $615 $2,304 $2,607
Adjusted excluding Hughes $448 $696 $2,359 $2,990
Net margin
(net income / total net
sales and revenues) 0.9% (1.8%) 2.0% 0.5%
Adjusted 0.9% 1.4% 1.6% 1.9%
Adjusted excluding Hughes 1.0% 1.7% 1.7% 2.3%
Earnings per share
Basic $1-2/3 $0.79 $(1.42) $5.09 $1.65
Diluted $1-2/3 $0.79 $(1.42) $5.08 $1.63
Basic Class H $(0.02) $(0.01) $(0.04) $(0.28)
Diluted Class H $(0.02) $(0.01) $(0.04) $(0.28)
Adjusted earnings per share
Basic $1-2/3 $0.79 $1.20 $4.19 $5.09
Diluted $1-2/3 $0.79(1) $1.20 $4.18 $5.05
Diluted $1-2/3
excluding Hughes $0.80 $1.24 $4.20 $5.29
Basic Class H $(0.02) $(0.06) $(0.04) $(0.32)
Diluted Class H $(0.02) $(0.06) $(0.04) $(0.32)
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 561 560 561 560
Diluted shares 561 561 561 565
Cash dividends per share
of common stocks
GM $1-2/3 par value $0.50 $0.50 $1.50 $1.50
Book value per share of
common stocks at Sept. 30
GM $1-2/3 par value $13.76 $25.44
GM Class H $2.75 $5.09
ACO total cash & marketable
securities at Sept. 30
($Bil's') $28.6 $16.0
Cash in short-term VEBA $3.4 $3.0
---- ----
ACO total cash & marketable
securities plus short-term $32.0 $19.0
VEBA
Less: Hughes cash & marketable
securities $2.7 $0.8
--- ---
Total Automotive cash &
Marketable securities plus
Short-term VEBA $29.3 $18.2
==== ====
Automotive, Communication Services
and Other Operations ($Mil's)
Depreciation $1,326 $1,166 $3,904 $3,441
Amortization of special tools 676 645 2,029 1,896
Amortization of intangible
Assets 29 3 77 6
----- ----- ----- -----
Total $2,031 $1,814 $6,010 $5,343
===== ===== ===== =====
See reconciliation of adjusted financial results on the following pages
and see footnotes.
General Motors Corporation
Summary Corporate Financial Results
Third Quarter
2003 and 2002
--------------
(Dollars in millions)
Total net sales and Reported Special Items Adjusted
revenues -------- ------------- --------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
GMNA $26,810 $26,704 $ - $ - $26,810 $26,704
GME 6,270 5,564 - - 6,270 5,564
GMLAAM 1,304 1,161 - - 1,304 1,161
GMAP 1,384 1,158 - - 1,384 1,158
------ ------ -- -- ------ ------
Total GMA 35,768 34,587 - - 35,768 34,587
Hughes 2,586 2,178 - 25 2,586 2,203
Other 77 (108) - - 77 (108)
------ ------ -- -- ------ ------
Total ACO 38,431 36,657 - 25 38,431 36,682
------ ------ -- -- ------ ------
GMAC 7,473 6,801 - - 7,473 6,801
Other Financing 25 122 - - 25 122
------ ------ -- -- ------ ------
Total FIO 7,498 6,923 - - 7,498 6,923
------ ------ -- -- ------ ------
Total net sales and
revenues $45,929 $43,580 $ - $25 $45,929 $43,605
====== ====== == == ====== ======
Income / (expense)
before income taxes and
minority interest
GMNA $200 $586 $ - $186 $200 $772
GME (251) (248) - - (251) (248)
GMLAAM (146) (96) - - (146) (96)
GMAP - 9 - - - 9
--- ----- -- ----- --- ---
Total GMA (197) 251 - 186 (197) 437
Hughes (44) 5 - (109) (44) (104)
Other (374) (2,426) - 2,211 (374) (215)
--- ----- -- ----- --- ---
Total ACO (615) (2,170) - 2,288 (615) 118
--- ----- -- ----- --- ---
GMAC 962 789 - - 962 789
Other Financing (4) (24) - - (4) (24)
--- ----- -- ----- --- ---
Total FIO 958 765 - - 958 765
Total income / --- ----- -- ----- --- ---
(expense) before
income taxes and
minority interests $343 $(1,405) $ - $2,288 $343 $883
=== ===== == ===== === ===
General Motors Corporation
Summary Corporate Financial Results
Third Quarter
2003 and 2002
---------------
(Dollars in millions) Reported Special Items Adjusted
-------- ------------ --------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
Net income
GMNA $128 $417 $ - $ 116 $128 $533
GME (152) (180) - - (152) (180)
GMLAAM (104) (61) - - (104) (61)
GMAP 162 76 - - 162 76
----- ----- -- ----- ----- -----
Total GMA 34 252 - 116 34 368
Hughes (23) (13) - (68) (23) (81)
Other (212) (1,486) - 1,371 (212) (115)
----- ----- -- ----- ----- -----
Total ACO (201) (1,247) - 1,419 (201) 172
----- ----- -- ----- ----- -----
GMAC 630 476 - - 630 476
Other Financing (4) (33) - - (4) (33)
----- ----- -- -- ----- -----
Total FIO 626 443 - - 626 443
----- ----- -- ----- ----- -----
Net income (loss) $425 $(804) $ - $1,419 $425 $615
===== ===== == ===== ===== =====
Income tax expense
(benefit)
GMNA $52 $177 $ - $ 70 $52 $247
GME (96) (63) - - (96) (63)
GMLAAM (51) (47) - - (51) (47)
GMAP 7 21 - - 7 21
--- --- -- --- --- ---
Total GMA (88) 88 - 70 (88) 158
Hughes (45) (5) - (41) (45) (46)
Other (152) (918) - 840 (152) (78)
--- --- -- -- --- ---
Total ACO (285) (835) - 869 (285) 34
--- --- -- --- --- ---
GMAC 374 289 - - 374 289
Other Financing - (5) - - - (5)
--- --- -- --- --- ---
Total FIO 374 284 - - 374 284
--- --- -- --- --- ---
Income tax expense
(benefit) $89 $(551) $ - $869 $89 $318
=== ==== == === === ===
Effective tax rate
GMNA 26.0% 30.2% - 37.6% 26.0% 32.0%
GME 38.2% 25.4% - - 38.2% 25.4%
GMLAAM 34.9% 49.0% - - 34.9% 49.0%
GMAP - 233.3% - - - 233.3%
Hughes 102.3% (100.0%) - 37.6% 102.3% 44.2%
GMAC 38.9% 36.6% - - 38.9% 36.6%
Total GM Corp. 25.9% 39.2% - 38.0% 25.9% 36.0%
Equity income (loss)
and minority interests
GMNA $(20) $8 $ - $ - $(20) $8
GME 3 5 - - 3 5
GMLAAM (9) (12) - - (9) (12)
GMAP 169 88 - - 169 88
--- -- -- -- --- --
Total GMA $143 $89 $ - $ - $143 $89
=== == == == === ==
See footnotes.
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 $85,331 $86,619 $ - $ - $85,331 $86,619
GME 20,195 17,149 - - 20,195 17,149
GMLAAM 3,468 3,768 - - 3,468 3,768
GMAP 3,798 3,344 - - 3,798 3,344
------- ------- --- -- ------- -------
Total GMA 112,792 110,880 - - 112,792 110,880
Hughes 7,202 6,431 - 54 7,202 6,485
Other 1,211 837 (814) - 397 837
------- ------- --- -- ------- -------
Total ACO 121,205 118,148 (814) 54 120,391 118,202
------- ------- --- -- ------- -------
GMAC 22,383 19,753 - - 22,383 19,753
Other Financing 14 232 - - 14 232
------- ------- --- -- ------- -------
Total FIO 22,397 19,985 - - 22,397 19,985
------- ------- --- -- ------- -------
Total net sales and
revenues $143,602 $138,133 $(814) $54 $142,788 $138,187
======= ======= === == ======= =======
Income / (expense)
before income taxes
and minority interest
GMNA $1,029 $3,305 $ - $186 $1,029 $3,491
GME (399) (1,290) - 726 (399) (564)
GMLAAM (286) (234) - - (286) (234)
GMAP 30 (35) - - 30 (35)
----- ----- --- ----- ----- -----
Total GMA 374 1,746 - 912 374 2,658
Hughes (5) (456) - (92) (5) (548)
Other (282) (2,749) (814) 2,211 (1,096) (538)
----- ----- --- ----- ----- -----
Total ACO 87 (1,459) (814) 3,031 (727) 1,572
----- ----- --- ----- ----- -----
GMAC 3,440 2,223 - - 3,440 2,223
Other Financing (16) (34) - - (16) (34)
----- ----- --- ----- ----- -----
Total FIO 3,424 2,189 - - 3,424 2,189
Total income / ----- ----- --- ----- ----- -----
(expense) before
income taxes and
minority interests $3,511 $730 $(814) $3,031 $2,697 $3,761
===== ===== === ===== ===== =====
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 $759 $2,348 $ - $116 $759 $2,464
GME (220) (882) - 462 (220) (420)
GMLAAM (219) (174) - - (219) (174)
GMAP 400 122 - - 400 122
----- ----- --- ----- --- -----
Total GMA 720 1,414 - 578 720 1,992
Hughes (2) (55) (325) - (58) (55) (383)
Other (7) (1,685) (505) 1,371 (512) (314)
----- ----- --- ----- ----- -----
Total ACO 658 (596) (505) 1,891 153 1,295
----- ----- --- ----- ----- -----
GMAC 2,163 1,346 - - 2,163 1,346
Other Financing (12) (34) - - (12) (34)
----- ----- --- ----- ----- -----
Total FIO 2,151 1,312 - - 2,151 1,312
----- ----- --- ----- ----- -----
Net income (loss) $2,809 $716 $(505) $1,891 $2,304 $2,607
===== ===== === ===== ===== =====
Income tax expense
(benefit)
GMNA $268 $967 $ - $70 $268 $1,037
GME (152) (374) - 264 (152) (110)
GMLAAM (83) (79) - - (83) (79)
GMAP 26 12 - - 26 12
----- ----- --- ----- ----- -----
Total GMA 59 526 - 334 59 860
Hughes (50) (190) - (34) (50) (224)
Other (303) (1,020) (309) 840 (612) (180)
----- ----- --- ----- ----- -----
Total ACO (294) (684) (309) 1,140 (603) 456
----- --- --- ----- ----- -----
GMAC 1,308 828 - - 1,308 828
Other Financing (4) (7) - - (4) (7)
----- --- --- ----- ----- -----
Total FIO 1,304 821 - - 1,304 821
----- --- --- ----- ----- -----
Income tax expense
(benefit) $1,010 $137 $(309) $1,140 $701 $1,277
===== === === ===== ===== =====
Effective tax rate
GMNA 26.0% 29.3% - 37.6% 26.0% 29.7%
GME 38.1% 29.0% - 36.4% 38.1% 19.5%
GMLAAM 29.0% 33.8% - - 29.0% 33.8%
GMAP 86.7% (34.3%) - - 86.7% (34.3%)
Hughes 1000.0% 41.7% - 37.0% 1000.0% 40.9%
GMAC 38.0% 37.2% - - 38.0% 37.2%
Total GM Corp. 28.8% 18.8% 38.0% 37.6% 26.0% 34.0%
Equity income (loss)
and minority interests
GMNA $(2) $10 $- $- $(2) $10
GME 27 34 - - 27 34
GMLAAM (16) (19) - - (16) (19)
GMAP 396 169 - - 396 169
--- --- --- --- --- ---
Total GMA $405 $194 $ - $ - $405 $194
=== === === === === ===
See footnotes.
General Motors Corporation
Operating Statistics
Third Quarter Year to Date
-------------- --------------
2003 2002 2003 2002
---- ---- ---- ----
(units in thousands)
Worldwide Wholesale Sales
United States - Cars 453 495 1,439 1,568
United States - Trucks 686 661 2,205 2,078
----- ----- ----- -----
Total United States 1,139 1,156 3,644 3,646
Canada, Mexico, and Other 113 152 479 581
----- ----- ----- -----
Total GMNA 1,252 1,308 4,123 4,227
GME 372 364 1,246 1,225
GMLAAM 134 162 377 476
GMAP 131 119 412 313
----- ----- ----- -----
Total Worldwide 1,889 1,953 6,158 6,241
===== ===== ===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 221 187 612 585
Chevrolet - Trucks 517 485 1,395 1,430
Pontiac 125 132 352 401
GMC 163 151 426 415
Buick 90 135 258 324
Oldsmobile 29 38 96 123
Saturn 70 66 217 212
Cadillac 58 56 154 145
Other 25 20 72 50
----- ----- ----- -----
Total United States 1,298 1,270 3,582 3,685
Canada, Mexico, and Other 183 183 514 570
----- ----- ----- -----
Total GMNA 1,481 1,453 4,096 4,255
GME 433 416 1,387 1,354
GMLAAM 137 152 391 433
GMAP 192 174 542 509
----- ----- ----- -----
Total Worldwide 2,243 2,195 6,416 6,551
===== ===== ===== =====
Market Share
United States - Cars 26.3% 25.1% 25.4% 25.4%
United States - Trucks 30.6% 30.6% 29.9% 30.6%
Total United States 28.7% 28.0% 27.8% 28.1%
Total North America 28.2% 27.6% 27.3% 27.7%
Total Europe 9.2% 9.0% 9.4% 9.1%
Total LAAM 15.4% 16.7% 15.3% 15.8%
Asia and Pacific 4.9% 4.7% 4.6% 4.7%
Total Worldwide 15.2% 15.1% 14.5% 14.9%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 30.5% 31.0% 30.1% 28.6%
% Fleet Sales - Trucks 9.5% 10.9% 12.9% 11.6%
Total Vehicles 18.1% 19.6% 20.1% 19.0%
Retail Lease as % of Retail Sales
Total Smartlease
and Smartbuy 6.6% 8.4%
Days Supply of Inventory
at September 30
United States - Cars 69 75
United States - Trucks 104 96
GMNA Capacity Utilization
(2 shift rated) 86.1% 89.8% 88.3% 88.3%
GMNA Vehicle Revenue
Per Unit $18,984 $18,782
General Motors Corporation
Operating Statistics
Third Quarter Year to Date
-------------- --------------
2003 2002 2003 2002
---- ---- ---- ----
GMAC's U.S. Cost of Borrowing 3.40% 4.03%
Current Debt Spreads Over
U.S. Treasuries
2 Year 185 bp 340 bp
5 Year 210 bp 360 bp
10 Year 265 bp 380 bp
Worldwide Employment
at September 30 (in 000's)
United States Hourly 119 123
United States Salary 40 41
--- ---
Total United States 159 164
Canada, Mexico, and Other 31 33
--- ---
GMNA 190 197
GME 63 68
GMLAAM 23 23
GMAP 14 11
Hughes 12 12
GMAC 32 31
Other 6 8
--- ---
Total 340 350
=== ===
Worldwide Payrolls ($Mil's) $5,008 $5,146 $15,727 $15,568
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 Nine Months Ended
September 30, September 30,
------------- -------------
2003 2002 2003 2002
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and revenues $45,929 $43,580 $143,602 $138,133
------ ------ ------- -------
Cost of sales and other expenses 37,016 36,957 115,339 113,754
Selling, general, and
administrative expenses 6,003 6,104 17,792 17,795
Interest expense 2,567 1,924 6,960 5,854
------ ------ ------- -------
Total costs and expenses 45,586 44,985 140,091 137,403
------ ------ ------- -------
Income before income taxes and
minority interests 343 (1,405) 3,511 730
Income tax expense (benefit) 89 (551) 1,010 137
Equity income (loss) and minority
interests 171 50 308 123
--- ---- ------ ---
Net income (loss) 425 (804) 2,809 716
Dividends on preference stocks - - - (47)
--- --- ----- ---
Earnings attributable to common
stocks $425 $(804) $2,809 $669
=== === ===== ===
Basic earnings (losses) per share
attributable to common stocks
Earnings per share attributable to
$1-2/3 par value $0.79 $(1.42) $5.09 $1.65
==== ==== ==== ====
Earnings (losses) per share
attributable to Class H $(0.02) $(0.01) $(0.04) $(0.28)
==== ==== ==== ====
Earnings (losses) per share
attributable to common stocks
assuming dilution
Earnings per share attributable to
$1-2/3 par value $0.79 $(1.42) $5.08 $1.63
==== ==== ==== ====
Earnings (losses) per share
attributable to Class H $(0.02) $(0.01) $(0.04) $(0.28)
==== ==== ==== ====
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2003 2002 2003 2002
---- ---- ---- ----
(dollars in millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES,
AND OTHER OPERATIONS
Total net sales and revenues $38,431 $36,657 $121,205 $118,148
------ ------ ------- -------
Cost of sales and other expenses 34,900 34,868 109,052 107,540
Selling, general, and
administrative expenses 3,495 3,645 10,617 11,153
Interest expense 587 242 1,310 706
------ ------ ------- -------
Total costs and expenses 38,982 38,755 120,979 119,399
Net expense from transactions with
Financing and Insurance
Operations 64 72 139 208
------ ------ ------- -------
Income (loss) before income taxes
and minority interests (615) (2,170) 87 (1,459)
Income tax expense (benefit) (285) (835) (294) (684)
Equity income and minority
interests 129 88 277 179
--- ----- --- -----
Net income - Automotive,
Communications Services, and
Other Operations $(201) $(1,247) $658 $(596)
=== ===== === ===
Operations
FINANCING AND INSURANCE OPERATIONS
Total revenues $7,498 $6,923 $22,397 $19,985
----- ----- ------ ------
Interest expense 1,980 1,682 5,650 5,148
Depreciation and amortization
expense 1,484 1,395 4,568 4,109
Operating and other expenses 2,315 2,315 6,560 6,171
Provisions for financing and
insurance losses 825 838 2,334 2,576
----- ----- ------ ------
Total costs and expenses 6,604 6,230 19,112 18,004
Net income from transactions with
Automotive, Communications
Services, and Other Operations (64) (72) (139) (208)
----- ----- ------ ------
Income before income taxes and
minority interests 958 765 3,424 2,189
Income tax expense 374 284 1,304 821
Equity income (loss) and minority
interests 42 (38) 31 (56)
--- --- ----- -----
Net income - Financing and
Insurance Operations $626 $443 $2,151 $1,312
=== === ===== =====
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
Sept. 30, Sept. 30,
2003 Dec. 31, 2002
(Unaudited) 2002 (Unaudited)
----------- ---- -----------
ASSETS (dollars in millions)
Cash and cash equivalents $41,854 $21,449 $22,008
Marketable securities 21,368 16,825 15,022
------ ------ ------
Total cash and marketable securities 63,222 38,274 37,030
Finance receivables - net 160,233 134,647 125,958
Accounts and notes receivable
(less allowances) 17,817 15,715 14,116
Inventories (less allowances) 11,229 9,967 10,673
Deferred income taxes 38,902 39,865 29,778
Equipment on operating leases - net 35,982 32,988 32,871
Equity in net assets of nonconsolidated
associates 5,803 5,044 5,045
Property - net 39,171 37,514 36,328
Intangible assets - net 18,064 17,954 17,100
Other assets 44,054 37,028 38,777
------- ------- -------
Total assets $434,477 $368,996 $347,676
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable (principally trade) $30,129 $25,082 $24,572
Notes and loans payable 261,323 201,940 186,531
Postretirement benefits other than pensions 35,875 38,186 37,976
Pensions 19,127 22,762 9,785
Deferred income taxes 6,965 7,178 5,969
Accrued expenses and other liabilities 68,965 66,200 62,894
------- ------- -------
Total liabilities 422,384 361,348 327,727
Minority interests 1,324 834 817
Stockholders' equity
$1-2/3 par value common stock
(outstanding, 560,741,759;
560,447,797; and 560,322,989 shares) 935 936 936
Class H common stock (outstanding,
1,108,731,138; 958,284,272;
and 958,110,288 shares) 111 96 96
Capital surplus (principally additional
paid-in capital) 22,884 21,583 21,561
Retained earnings 12,000 10,031 9,291
------ ------ -------
Subtotal 35,930 32,646 31,884
Accumulated foreign currency translation
adjustments (2,099) (2,784) (3,009)
Net unrealized loss on derivatives (130) (205) (286)
Net unrealized gains on securities 515 372 141
Minimum pension liability adjustment (23,447) (23,215) (9,598)
------ ------ ------
Accumulated other comprehensive loss (25,161) (25,832) (12,752)
------ ------ ------
Total stockholders' equity 10,769 6,814 19,132
------- ------- -------
Total liabilities and stockholders'
equity $434,477 $368,996 $347,676
======= ======= =======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
Sept. 30, Sept. 30,
2003 Dec. 31, 2002
(Unaudited) 2002 (Unaudited)
----------- ---- -----------
ASSETS (dollars in millions)
Automotive, Communications Services,
and Other Operations
Cash and cash equivalents $20,530 $13,291 $14,670
Marketable securities 8,022 2,174 1,360
------- ------- -------
Total cash and marketable securities 28,552 15,465 16,030
Accounts and notes receivable
(less allowances) 6,613 5,861 5,649
Inventories (less allowances) 11,229 9,967 10,673
Equipment on operating leases
(less accumulated depreciation) 6,401 5,305 4,524
Deferred income taxes and
other current assets 10,842 10,816 9,061
------ ------ -------
Total current assets 63,637 47,414 45,937
Equity in net assets of
nonconsolidated associates 5,803 5,044 5,045
Property - net 37,174 35,693 34,569
Intangible assets - net 14,808 14,611 13,796
Deferred income taxes 30,353 31,431 22,884
Other assets 7,980 7,781 15,112
------- ------- -------
Total Automotive, Communications Services, and
Other Operations assets 159,755 141,974 137,343
Financing and Insurance Operations
Cash and cash equivalents 21,324 8,158 7,338
Investments in securities 13,346 14,651 13,662
Finance receivables - net 160,233 134,647 125,958
Investment in leases and other receivables 38,781 35,517 34,629
Other assets 41,038 34,049 28,746
Net receivable from Automotive, Communications
Services, and Other Operations 1,735 1,089 529
------- ------- -------
Total Financing and Insurance
Operations assets 276,457 228,111 210,862
------- ------- -------
Total assets $436,212 370,085 $348,205
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive, Communications Services,
and Other Operations
Accounts payable (principally trade) $22,727 $20,169 $19,851
Loans payable 836 1,516 1,472
Accrued expenses 42,207 40,518 36,817
Net payable to Financing and
Insurance Operations 1,735 1,089 529
------- ------- -------
Total current liabilities 67,505 63,292 58,669
Long-term debt 34,419 16,651 16,794
Postretirement benefits other than pensions 31,949 34,275 34,138
Pensions 19,063 22,709 9,742
Other liabilities and deferred income taxes 15,560 15,461 15,764
------- ------- -------
Total Automotive, Communications Services, and
Other Operations liabilities 168,496 152,388 135,107
Financing and Insurance Operations
Accounts payable 7,402 4,913 4,721
Debt 226,068 183,773 168,265
Other liabilities and deferred income taxes 22,153 21,363 20,163
------- ------- -------
Total Financing and Insurance Operations 255,623 210,049 193,149
liabilities ------- ------- -------
Total liabilities 424,119 362,437 328,256
Minority interests 1,324 834 817
Stockholders' equity
$1-2/3 par value common stock
(outstanding, 560,741,759;
560,447,797; and 560,322,989 shares) 935 936 936
Class H common stock (outstanding,
1,108,731,138; 958,284,272;
and 958,110,288 shares) 111 96 96
Capital surplus (principally
additional paid-in capital) 22,884 21,583 21,561
Retained earnings 12,000 10,031 9,291
------ ------ ------
Subtotal 35,930 32,646 31,884
Accumulated foreign currency translation
adjustments (2,099) (2,784) (3,009)
Net unrealized loss on derivatives (130) (205) (286)
Net unrealized gains on securities 515 372 141
Minimum pension liability adjustment (23,447) (23,215) (9,598)
------ ------ ------
Accumulated other comprehensive loss (25,161) (25,832) (12,752)
------ ------ ------
Total stockholders' equity 10,769 6,814 19,132
------- ------- -------
Total liabilities and stockholders'
equity $436,212 $370,085 $348,205
======= ======= =======
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)
Nine Months Ended
September 30,
---------------------
2003 2002
---- ----
(dollars in millions)
Net cash provided by operating activities $10,299 $17,190
Cash flows from investing activities
Expenditures for property (5,224) (4,990)
Investments in marketable securities -
acquisitions (12,600) (35,024)
Investments in marketable securities -
liquidations 7,997 32,425
Net originations and purchases of mortgage
servicing rights (2,029) (1,290)
Increase in finance receivables (103,738) (102,899)
Proceeds from sales of finance receivables 76,177 85,492
Operating leases - acquisitions (9,282) (9,817)
Operating leases - liquidations 8,137 7,722
Investments in companies, net of cash acquired (206) (306)
Proceeds from sale of business units 1,076 -
Other (918) 223
------ ------
Net cash used in investing activities (40,610) (28,464)
------ ------
Cash flows from financing activities
Net increase (decrease) in loans payable (436) 7,528
Long-term debt - borrowings 80,065 25,731
Long-term debt - repayments (28,579) (18,009)
Repurchases of common and preference stocks - (97)
Proceeds from issuing common stocks - 64
Proceeds from sales of treasury stocks - 19
Cash dividends paid to stockholders (840) (887)
------ ------
Net cash provided by financing activities 50,210 14,349
------ ------
Effect of exchange rate changes on cash and
cash equivalents 506 378
------ ------
Net increase (decrease) in cash and cash
equivalents 20,405 3,453
Cash and cash equivalents at beginning of the
period 21,449 18,555
------ ------
Cash and cash equivalents at end of the period $41,854 $22,008
====== ======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Automotive, Comm. Financing and
Serv. and Other Insurance
--------------- -------------
Nine Months Ended September 30,
-----------------------------------
2003 2002 2003 2002
---- ---- ---- ----
(dollars in millions)
Net cash provided by operating
activities $1,121 $8,147 $9,178 $9,043
Cash flows from investing activities
Expenditures for property (4,756) (4,920) (468) (70)
Investments in marketable securities
- acquisitions (7,033) (1,391) (5,567) (33,633)
Investments in marketable securities
- liquidations 1,185 821 6,812 31,604
Net originations and purchases of
mortgage servicing rights - - (2,029) (1,290)
Increase in finance receivables - - (103,738) (102,899)
Proceeds from sales of finance
receivables - - 76,177 85,492
Operating leases - acquisitions - - (9,282) (9,817)
Operating leases - liquidations - - 8,137 7,722
Investments in companies, net of cash
acquired (64) (156) (142) (150)
Proceeds from sale of business units 1,076 - - -
Other (277) 258 (641) (35)
----- ----- ------ ------
Net cash used in investing activities (9,869) (5,388) (30,741) (23,076)
----- ----- ------ ------
Cash flows from financing activities
Net increase (decrease) in loans
payable (866) (930) 430 8,458
Long-term debt - borrowings 17,262 6,149 62,803 19,582
Long-term debt - repayments (588) (183) (27,991) (17,826)
Repurchase of common and preference
stocks - (97) - -
Proceeds from issuing common stocks - 64 - -
Proceeds from sales of treasury stocks - 19 - -
Cash dividends paid to stockholders (840) (887) - -
------ ----- ------ ------
Net cash provided by financing
activities 14,968 4,135 35,242 10,214
------ ----- ------ ------
Effect of exchange rate changes on
cash and cash equivalents 373 372 133 6
Net transactions with
Automotive/Financing Operations 646 (1,028) (646) 1,028
------ ----- ------ ------
Net increase (decrease) in cash and
cash equivalents 7,239 6,238 13,166 (2,785)
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 $20,530 $14,670 $21,324 $7,338
====== ====== ====== =====
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- 10/15/2003 P
/NOTE TO EDITORS: For additional media information, visit http://media.gm.com ./
/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