DETROIT, July 26,
2022 /PRNewswire/ -- General Motors Co. (NYSE: GM)
today reported second-quarter net income attributable to
stockholders of $1.7 billion and
EBIT-adjusted of $2.3 billion, in
line with the earnings update the company issued on July 1. GM continues to expect to meet its
full-year earnings guidance.
Downloads
- Q2 earnings deck, including GM Chair and CEO Mary Barra's letter to shareholders
- Detailed quarterly results with year-over-year comparisons
Results Overview
|
Three Months
Ended
|
|
($M) except where
noted
|
June 30,
2022
|
June 30,
2021
|
Change
|
Revenue
|
$
35,759
|
$
34,167
|
$
1,592
|
Net income attributable
to stockholders
|
$ 1,692
|
$ 2,836
|
$
(1,144)
|
EBIT-adjusted
|
$ 2,343
|
$
4,117
|
$
(1,774)
|
Net income
margin
|
4.7 %
|
8.3 %
|
(3.6) ppts
|
EBIT-adjusted
margin
|
6.6 %
|
12.0 %
|
(5.4) ppts
|
Automotive operating
cash flow
|
$ 3,469
|
$
4,007
|
$
(538)
|
Adjusted automotive
free cash flow
|
$ 1,407
|
$ 2,478
|
$
(1,071)
|
EPS-diluted(a)
|
$
1.14
|
$
1.90
|
$
(0.76)
|
EPS-diluted-adjusted(a)
|
$
1.14
|
$
1.97
|
$
(0.83)
|
GMNA
EBIT-adjusted
|
$ 2,299
|
$ 2,894
|
$
(595)
|
GMNA EBIT-adjusted
margin
|
8.0 %
|
10.4 %
|
(2.4) ppts
|
GMI
EBIT-adjusted
|
$
209
|
$
15
|
$
194
|
China equity
income
|
$
(87)
|
$
276
|
$
(363)
|
GM Financial
EBT-adjusted
|
$
1,106
|
$
1,581
|
$
(475)
|
__________
|
(a)
|
EPS-diluted and
EPS-diluted-adjusted include a $(0.05) and $0.12 impact from
revaluation on equity investments in the three months ended June
30, 2022 and 2021.
|
|
Six Months
Ended
|
|
($M) except where
noted
|
June 30,
2022
|
June 30,
2021
|
Change
|
Revenue
|
$
71,738
|
$ 66,641
|
$
5,097
|
Net income attributable
to stockholders
|
$ 4,631
|
$
5,858
|
$
(1,227)
|
EBIT-adjusted
|
$ 6,387
|
$
8,534
|
$
(2,147)
|
Net income
margin
|
6.5 %
|
8.8 %
|
(2.3) ppts
|
EBIT-adjusted
margin
|
8.9 %
|
12.8 %
|
(3.9) ppts
|
Automotive operating
cash flow
|
$ 5,104
|
$
2,911
|
$
2,193
|
Adjusted automotive
free cash flow
|
$
1,413
|
$
546
|
$
867
|
EPS-diluted(a)
|
$
2.49
|
$
3.93
|
$
(1.44)
|
EPS-diluted-adjusted(a)
|
$
3.23
|
$
4.21
|
$
(0.98)
|
GMNA
EBIT-adjusted
|
$ 5,440
|
$
6,028
|
$
(588)
|
GMNA EBIT-adjusted
margin
|
9.3 %
|
11.2 %
|
(1.9) ppts
|
GMI
EBIT-adjusted
|
$
537
|
$
323
|
$
214
|
China equity
income
|
$
147
|
$
584
|
$
(437)
|
GM Financial
EBT-adjusted
|
$ 2,390
|
$
2,763
|
$
(373)
|
__________
|
(a)
|
EPS-diluted and
EPS-diluted-adjusted include a $(0.16) and $0.20 impact from
revaluation on equity investments in the six months ended June 30,
2022 and 2021.
|
2022 Guidance
- Full-year net income of between $9.6
billion and $11.2 billion, and
EBIT-adjusted of between $13.0
billion and $15.0 billion
- Full-year EPS-diluted of between $5.76 and $6.76,
and EPS-diluted-adjusted of between $6.50 and $7.50
- Full-year net automotive cash provided by operating activities
guidance range of between $16.0
billion and $19.0 billion, and
adjusted automotive free cash flow guidance range of between
$7.0 billion and $9.0 billion
See below for reconciliations of non-GAAP measures to their most
directly comparable GAAP measures or visit the GM Investor
Relations website for complete details.
Conference Call for Investors and
Analysts
Mary Barra and Chief
Financial Officer Paul Jacobson will
host a conference call for investors and analysts at 8:30 a.m. ET today to discuss these results and
the company's growth strategy. Introductory remarks will be
followed by a question-and-answer session.
Those who wish to listen to the call may dial in using the
following numbers:
- United States:
1-800-857-9821
- International: +1-517-308-9481
- Conference call passcode: General Motors
General Motors (NYSE:GM) is a global company focused
on advancing an all-electric future that is inclusive and
accessible to all. At the heart of this strategy is the Ultium
battery platform, which powers everything from mass-market to
high-performance vehicles. General Motors, its subsidiaries and its
joint venture entities sell vehicles under
the Chevrolet, Buick, GMC, Cadillac, Baojun
and Wuling brands. More information on the company and
its subsidiaries, including OnStar, a global leader in vehicle
safety and security services, can be found
at https://www.gm.com.
Cautionary Note on Forward-Looking
Statements: This press release and related comments
by management may include "forward-looking statements" within the
meaning of the U.S. federal securities laws. Forward-looking
statements are any statements other than statements of historical
fact. Forward-looking statements represent our current judgment
about possible future events and are often identified by words such
as "anticipate," "appears," "approximately," "believe," "continue,"
"could," "designed," "effect," "estimate," "evaluate," "expect,"
"forecast," "goal," "initiative," "intend," "may," "objective,"
"outlook," "plan," "potential," "priorities," "project," "pursue,"
"seek," "should," "target," "when," "will," "would," or the
negative of any of those words or similar expressions. In making
these statements, we rely upon assumptions and analysis 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 future events or financial results, and our
actual results may differ materially due to a variety of factors,
many of which are described in our most recent Annual Report on
Form 10-K and our other filings with the U.S. Securities and
Exchange Commission. We caution readers not to place undue reliance
on forward-looking statements. Forward-looking statements speak
only as of the date they are made, and 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.
Non-GAAP Reconciliations
The following table reconciles Net income (loss) attributable to
stockholders under U.S. GAAP to EBIT (loss)-adjusted (dollars in
millions):
|
Three Months
Ended
|
Six Months
Ended
|
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
Net income (loss)
attributable to stockholders(a)
|
$
1,692
|
$
2,836
|
$
4,631
|
$
5,858
|
Income tax expense
(benefit)
|
490
|
971
|
462
|
2,148
|
Automotive interest
expense
|
234
|
243
|
460
|
493
|
Automotive interest
income
|
(73)
|
(32)
|
(123)
|
(64)
|
Adjustments
|
|
|
|
|
Cruise compensation
modifications(b)
|
—
|
—
|
1,057
|
—
|
Patent royalty
matters(c)
|
—
|
—
|
(100)
|
—
|
Cadillac dealer
strategy(d)
|
—
|
17
|
—
|
17
|
GM Korea wage
litigation(e)
|
—
|
82
|
—
|
82
|
Total
adjustments
|
—
|
99
|
957
|
99
|
EBIT
(loss)-adjusted
|
$
2,343
|
$
4,117
|
$
6,387
|
$
8,534
|
__________
|
(a)
|
Net of net loss
attributable to noncontrolling interests.
|
(b)
|
This adjustment was
excluded because it relates to the one-time modification of Cruise
stock incentive awards.
|
(c)
|
This adjustment was
excluded because it relates to the resolution, in the three months
ended March 31, 2022,
of substantially all matters related to certain royalties accrued
with respect to past-year vehicle sales.
|
(d)
|
This adjustment was
excluded because it relates to strategic activities to transition
certain Cadillac dealers from
the network as part of Cadillac's electric vehicle
strategy.
|
(e)
|
This adjustment was
excluded because of the unique events associated with Supreme Court
of Korea decisions
related to our salaried workers.
|
The following table reconciles diluted earnings (loss) per
common share under U.S. GAAP to EPS-diluted-adjusted (dollars in
millions, except per share amounts):
|
Three Months
Ended
|
Six Months
Ended
|
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
|
Amount
|
Per
Share
|
Amount
|
Per
Share
|
Amount
|
Per
Share
|
Amount
|
Per
Share
|
Diluted earnings per
common share
|
$
1,666
|
$
1.14
|
$ 2,790
|
$
1.90
|
$ 3,653
|
$ 2.49
|
$ 5,767
|
$ 3.93
|
Adjustments(a)
|
—
|
—
|
99
|
0.07
|
957
|
0.65
|
99
|
0.06
|
Tax effect on
adjustments(b)
|
—
|
—
|
(4)
|
—
|
(296)
|
(0.20)
|
(4)
|
—
|
Tax
adjustments(c)
|
—
|
—
|
—
|
—
|
(482)
|
(0.33)
|
316
|
0.22
|
Deemed dividend
adjustment(d)
|
—
|
—
|
—
|
—
|
909
|
0.62
|
—
|
—
|
EPS-diluted-adjusted
|
$
1,666
|
$
1.14
|
$ 2,885
|
$
1.97
|
$
4,741
|
$ 3.23
|
$
6,178
|
$
4.21
|
__________
|
(a)
|
Refer to the
reconciliation of Net income (loss) attributable to stockholders
under U.S. GAAP to EBIT (loss)-adjusted for
adjustment details.
|
(b)
|
The tax effect of each
adjustment is determined based on the tax laws and valuation
allowance status of the jurisdiction
to which the adjustment relates.
|
(c)
|
These adjustments
consist of tax benefit related to the release of a valuation
allowance against deferred tax assets that
are considered realizable as a result of Cruise tax reconsolidation
in the six months ended June 30, 2022, and tax expense
related to the establishment of a valuation allowance against
deferred tax assets that were considered no longer realizable
for Cruise in the six months ended June 30, 2021. These adjustments
were excluded because significant impacts of valuation
allowances are not considered part of our core
operations.
|
(d)
|
This adjustment
consists of a deemed dividend related to the redemption of Cruise
preferred shares from SoftBank in the six
months ended June 30, 2022.
|
The following table reconciles net automotive cash provided by
(used in) operating activities under U.S. GAAP to adjusted
automotive free cash flow (dollars in millions):
|
Three Months
Ended
|
Six Months
Ended
|
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
Net automotive cash
provided by (used in) operating activities
|
$
3,469
|
$
4,007
|
$
5,104
|
$
2,911
|
Less: Capital
expenditures
|
(2,073)
|
(1,546)
|
(3,717)
|
(2,406)
|
Add: GMI
restructuring
|
—
|
—
|
—
|
24
|
Add: Cadillac dealer
strategy
|
—
|
17
|
—
|
17
|
Add: GM Korea wage
litigation
|
10
|
—
|
26
|
—
|
Adjusted automotive
free cash flow
|
$
1,407
|
$
2,478
|
$
1,413
|
$
546
|
Guidance Reconciliations
The following table reconciles expected Net income (loss)
attributable to stockholders under U.S. GAAP to expected
EBIT-adjusted (dollars in billions):
|
Year Ending
December 31, 2022
|
Net income attributable
to stockholders
|
$
9.6-11.2
|
Income tax
expense
|
1.6-2.0
|
Automotive interest
expense, net
|
0.8
|
Adjustments(a)
|
1.0
|
EBIT-adjusted(b)
|
$
13.0-15.0
|
__________
|
(a)
|
Refer to the
reconciliation of Net income (loss) attributable to
stockholders
under U.S. GAAP to EBIT (loss)-adjusted for adjustment
details.
|
(b)
|
We do not consider the
potential future impact of adjustments on our
expected financial results.
|
The following table reconciles expected EPS-diluted under U.S.
GAAP to expected EPS-diluted-adjusted:
|
Year Ending
December 31, 2022
|
Diluted earnings per
common share
|
$
5.76-6.76
|
Adjustments(a)
|
0.74
|
EPS-diluted-adjusted(b)
|
$
6.50-7.50
|
__________
|
(a)
|
Refer to the
reconciliation of diluted earnings (loss) per common share
under U.S. GAAP to EPS-diluted-adjusted for adjustment
details.
|
(b)
|
We do not consider the
potential future impact of adjustments on our
expected financial results.
|
The following table reconciles expected automotive net cash
provided by operating activities under U.S. GAAP to adjusted
automotive free cash flow (dollars in billions):
|
Year Ending
December 31, 2022
|
Net automotive cash
provided by operating activities
|
$
16.0-19.0
|
Less: Capital
expenditures
|
9.0-10.0
|
Adjusted automotive
free cash flow
|
$
7.0-9.0
|
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content:https://www.prnewswire.com/news-releases/gm-reports-second-quarter-2022-results-301592979.html
SOURCE General Motors Co.