1st Quarter Results
GM Reports First Quarter Financial Results
-- Net income of $1.5 billion, or $2.71 per share
-- Adjusted net income of $1 billion, or $1.84 per share,
excluding Hughes and the sale of GM Defense
-- Total automotive cash exceeds $20 billion
DETROIT, April 15 -- General Motors Corp. (NYSE: GM, GMH) today reported net income of $1.5 billion, or
$2.71 per diluted share of GM's
$1-2/3 par value common stock, in the first quarter of 2003, up from $228 million, or $0.57 per share, in the first
quarter of 2002.
GM's adjusted income, which excludes a gain from the sale of GM Defense and results from Hughes Electronics,
totaled $1 billion, or $1.84 per share, in the first quarter of 2003. GM's adjusted net income in the first quarter of
2002 was $791 million, or $1.39 per share. Automotive and financing revenue rose about 5 percent.
GM's performance in the first quarter of 2003 reflected profitable automotive operations in North America,
significantly improved results in Europe and Asia, record earnings at General Motors Acceptance Corp., and
continued strong automotive cash flow.
The first-quarter 2003 results include a gain of $505 million after tax, or $0.90 per share, from the previously
announced sale of GM Defense. The first-quarter 2002 results included unfavorable special items totaling $417
million, or $0.72 per share.
'The first quarter financial results reflect solid contributions from both our automotive operations and our finance
unit,' said GM Chairman Jack Smith. 'As I prepare to retire from General Motors, I'm confident that GM has the
right products and the right management team to continue to leverage our strengths as the world's largest automaker
to grow the business around the
world.'
'GM turned in a strong performance overall during the first quarter,' GM President and Chief Executive Officer
Rick Wagoner said. 'I'm particularly pleased with the record-breaking performance at GMAC, the continued
strength of our Asia-Pacific operations, and the growing momentum behind GM Europe's
turnaround. While market conditions were admittedly challenging, market share performance in North America did
not meet our expectations. We are launching new products in key, high-volume segments of the market to improve
our competitiveness, and we expect to remain aggressive in the marketplace. At the same time, we must continue to
build on our tremendous progress in
improving quality and reducing costs around the globe.'
Wagoner said GM's passenger car offensive is already underway with the launch of the Pontiac Grand Prix,
followed by the Chevrolet Malibu and Malibu Maxx, and the Pontiac GTO later this year. In addition, Cadillac's
renaissance continues with the upcoming introduction of the Cadillac XLR roadster and SRX crossover vehicle. GM
is also expanding its truck line-up in 2003 with the Cadillac Escalade ESV, the Buick Rainier, the GMC Envoy XUV
and the all-new Chevrolet Colorado and the GMC Canyon.
In Europe, GM is introducing five new models this year, including the Opel Meriva, Signum, Vectra wagon and
Speedster Turbo, and the Saab 9-3 Cabrio. Additionally, GM Daewoo Auto & Technology Co. is launching three
new 2003 products in Europe: the Matiz, the Kalos and the Nubira.
Cadillac, Saab Post Impressive Sales Gains
Within the luxury segment of the market, GM continued to demonstrate strong momentum with Cadillac sales
surging 16 percent in the first quarter of 2003 and Saab Cars USA reporting the best quarterly sales results in its
47-year history.
'Cadillac's resurgence epitomizes GM's strategy to deliver truly exciting and unique products,' Wagoner said.
'The Escalade and the CTS are allowing GM to reach younger, more affluent customers, and we expect that trend to
continue with the introduction of the SRX and the XLR later this year. And, the new Saab 9-3 sports sedan is off to
a very strong start.'
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 approximately $3.3 billion in automotive cash in the first quarter of 2003, including approximately
$1.1 billion from the sale of GM Defense. Cash, marketable securities, and assets of the VEBA trust invested in
short-term fixed-income securities totaled $20.6 billion at March 31, 2003, excluding financing and insurance
operations and Hughes, compared with $17.3 billion on Dec. 31, 2002. The increase in cash improved GM's net
liquidity to $5.6 billion at the end of the first quarter of 2003 versus $2.3 billion at the end of 2002.
As previously announced, GM contributed 149.2 million shares of GM Class H stock, valued at $1.24 billion, to its
U.S. employee benefit plans in the first quarter of 2003 to further strengthen GM's balance sheet.
GM Automotive Operations
GM's global automotive operations earned $546 million in the first quarter of 2003, compared with $496 million in
the prior-year period. Global production rose 7 percent in the first quarter, compared with the same period in 2002.
GM North America (GMNA) earned $548 million in the first quarter of 2003, compared with $654 million in the
first quarter of 2002. GM continued to show improvement in sales mix, material cost, and productivity in North
America, but the gains were more than offset by intense pricing pressure, higher pension expense, and currency
exchange losses versus the year-ago period. GM's U.S. market share was 26.6 percent in the first quarter of 2003,
down from 28.2 percent in the year-earlier period.
GM Europe (GME) reported a loss of $65 million in the first quarter of 2003, a substantial improvement from a
year ago when GME posted a loss of $125 million. The improvement reflected increased volume for GME as new
Opel and Saab products reached the market. In addition, GME made significant progress in cost reduction at
Opel/Vauxhall and Saab.
'We're pleased with the continuing progress of our turnaround effort at Opel/Vauxhall, and we've made good
progress at Saab in a relatively short period of time,' Wagoner said. 'During the first quarter of 2003, GM Europe
increased its market share to 9.6 percent, representing six consecutive months of market share gains in Europe. In
addition, Saab reported impressive sales in its key markets, so we feel we're on the right track in Europe.' GM Asia
Pacific earned $75 million in the first quarter of 2003, up from $7 million in the year-ago quarter. Shanghai GM and
GM's Australia-based Holden continued to post strong financial results. Asia-Pacific results also benefited from
lower-than-expected start-up costs at GM Daewoo Auto & Technology Co. GM
Latin America/Africa/Mid-East (GMLAAM) lost $12 million in the first quarter of 2003, compared with a loss of $40
million in the year-ago period.
'GM's Asia-Pacific operations are a growing contributor to our overall performance,' Wagoner said. 'Our joint
ventures in China are expanding rapidly, and GM Daewoo is performing better than we had planned. While the Latin
American market remains difficult, we are continuing to increase our market share and strengthen our number one
position in the region, and reduce costs.'
GMAC
General Motors Acceptance Corporation (GMAC) reported record quarterly earnings in the first quarter of 2003,
propelled by record performance at its mortgage operations.
'GMAC's mortgage operations achieved truly exceptional results,' Wagoner said. 'We are also pleased to see
higher earnings in its financing business.'
GMAC earned $699 million in the first quarter of 2003, up nearly 60 percent from the $439 million a year ago.
Earnings at the mortgage group rose to a record $371 million, more than double the $148 million recorded in the first
quarter of 2002. The improvement reflects continued strong volumes at both the residential and commercial
mortgage sectors.
GMAC's financing operations also posted a strong performance with earnings of $302 million in the quarter, up
$47 million from a year ago, reflecting higher asset levels and lower credit loss provisions. First quarter earnings at
the insurance group were $26 million, down $10 million from a year ago. These results reflect a decline in the
investment portfolio, which more than
offset improved underwriting income.
Hughes
Hughes Electronics reduced its losses substantially during the first quarter of 2003 to $54 million from a loss of
$146 million in the prior-year period, led by a strong performance at DirecTV. During the quarter, DirecTV U.S.
experienced better-than-expected subscriber growth and higher average revenue per subscriber. In addition,
operating margins improved sharply, and DirecTV's monthly customer churn rate fell to 1.5 percent during the
quarter, representing the lowest level attained in a first quarter in four years. DirecTV added 275,000 net subscribers
in the first quarter of 2003, bringing the number of total U.S. subscribers to 11.4 million.
As a result of the improved performance at DirecTV, Hughes reported an operating profit of nearly $42 million in
the first quarter of 2003, the first time Hughes has generated a quarterly operating profit in over four years.
GM recently announced that it plans to split off Hughes and simultaneously sell its 19.9 percent economic interest
in Hughes to News Corp. for $14 per share, or approximately $3.8 billion. GM would receive about $3.1 billion in
cash, and the remainder would be paid in cash or News Corp. preferred American Depositary Receipts (ADRs). GM
would also receive a distribution of $275 million from Hughes in consideration of the value enhancement for Class H
stockholders arising from the conversion from a tracking stock to an asset based stock. The transaction is expected
to close in late 2003 or early 2004.
Looking Ahead
GM expects moderate economic growth in 2003 in the United States, resulting in total U.S. industry vehicle sales
in the low to mid-16 million unit range. In Europe, total industry vehicle sales are expected to be in the high 18-
million unit range.
Although there is considerable economic uncertainty and increasing price and volume pressure, GM expects
second quarter earnings of at least $1.00 per share, excluding Hughes and any special items. GM expects to be
profitable in both the third and fourth quarters of 2003. However, GM is now less certain of its ability to achieve its
prior 2003 calendar-year guidance of $5.00
earnings per share, given the uncertain economic conditions around the globe. In light of these circumstances, GM is
not providing any specific update to its calendar-year earnings guidance at this time.
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' 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, General Motors Corporation ('GM'), Hughes Electronics
Corporation ('Hughes') and The News Corporation Limited ('News') intend to file relevant materials with the
Securities and Exchange Commission ('SEC'), including one or more registration statement(s) that contain a
prospectus and proxy/consent solicitation statement. Because
those documents will contain important information, holders of GM $1-2/3 common stock and GM Class H common
stock are urged to read them, if and when they become available. When filed with the SEC, they will be available for
free (along with any other documents and reports filed by GM, Hughes or News with the SEC) at the SEC's website,
www.sec.gov , and GM stockholders will
receive information at an appropriate time on how to obtain transaction-related documents for free from GM. Such
documents are not currently available.
GM and its directors and executive officers and Hughes and certain of its executive officers may be deemed to be
participants in the solicitation of proxies or consents from the holders of GM $1-2/3 common stock and GM Class H
common stock in connection with the proposed transactions. Information about the directors and executive officers
of GM and their ownership of GM stock is set forth in the proxy statement for GM's 2002 annual meeting of
shareholders filed with the SEC and available free of charge at the SEC's website at www.sec.gov . Investors may
obtain additional information regarding the interests of such participants by reading the prospectus and proxy/consent
solicitation statement if and when it becomes available.
Participants in GM's solicitation may also be deemed to include the following persons whose interests in GM are
not described in the proxy statement for GM's 2002 annual meeting:
Jack A. Shaw Chief Executive Officer, Hughes
Roxanne S. Austin Executive VP, Hughes; President and COO,
DIRECTV
Patrick T. Doyle Corporate VP and Treasurer, Hughes
Michael J. Gaines Corporate VP and CFO, Hughes
Sandra A. Harrison Senior VP, Hughes
Eddy W. Hartenstein Senior Executive VP, Hughes; Chairman,
DIRECTV
Larry D. Hunter Senior VP and General Counsel
Mr. Shaw beneficially owns 4,084 shares of GM $1-2/3 common stock and 2,244,987 shares of GM Class H
common stock. Ms. Austin beneficially owns 3,293 shares of GM $1-2/3 common stock and 1,632,071 shares of
GM Class H common stock. Mr. Doyle beneficially owns 746 shares of GM $1-2/3 common stock and 511,149
shares of GM Class H common stock. Mr. Gaines beneficially owns 482 shares of GM $1-2/3 common stock and
298,745 shares of GM Class H common stock. Ms. Harrison beneficially owns 1,632 shares of GM $1-2/3 common
stock and 916,136 shares of GM Class H common stock. Mr. Hartenstein
beneficially owns 3,036 shares of GM $1-2/3 common stock and 1,962,614 shares of GM Class H common stock.
Mr. Hunter beneficially owns 0 shares of GM
$1-2/3 common stock and 485,130 shares of GM Class H common stock. The above ownership information includes
shares that are purchasable under options
that are exercisable within 60 days of April 9, 2003. In addition, each of Mr. Shaw, Ms. Austin, Mr. Doyle, Mr.
Gaines, Ms. Harrison, Mr. Hartenstein and Mr. Hunter holds options to acquire shares of GM Class H common stock
that are not exercisable within 60 days of April 9, 2003.
Each of Mr. Shaw, Ms. Austin, Mr. Doyle, Mr. Gaines, Ms. Harrison,
Mr. Hartenstein and Mr. Hunter has a severance agreement with Hughes that provides for severance in the event of
an involuntary termination after a change in control, and each also has a retention agreement that provides for certain
payments in the event of a change in control.
Investors may obtain additional information regarding the interests of the participants by reading the prospectuses
and proxy/solicitation statements if and when they become available. 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 News to differ materially, many of which are beyond the control of GM, Hughes or News
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, 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; (9) general
business and economic conditions; and (10) other risks described from time to time in periodic reports filed by GM,
Hughes or News with the SEC. 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,' 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
March 31, 2003
---------------------
GM $1-2/3
Par Value
Common Stock
EPS
---------
Net Income $1,483 $2.71
Gain on Sale of GM Defense (A) (505) (0.90)
--- ----
Adjusted Income $978 $1.81
=== ====
Three Months Ended
March 31, 2002
---------------------
GM $1-2/3
Par Value
Common Stock
EPS
---------
Net Income $228 $0.57
GME Restructuring Charge (B) 407 0.72
Hughes Space Shuttle Settlement (C) (59) (0.04)
Hughes GECC Contractual Dispute (D) 51 0.03
Hughes Loan Guarantee Charge (E) 18 0.01
--- ----
Adjusted Income $645 $1.29
=== ====
(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 $1.1 billion.
(B) The GME Restructuring Charge relates to the initiative
implemented in the first quarter of 2002 to improve the
competitiveness of GM's automotive operations in Europe.
(C) The Space Shuttle Settlement relates to the favorable
resolution of a lawsuit that was filed against the U.S.
government by Hughes on March 22, 1991, based upon the
National Aeronautics and Space Administration's (NASA)
breach of contract to launch ten satellites on
the Space Shuttle.
(D) The GECC Contractual Dispute relates to an expected loss
associated with a contractual dispute with General Electric
Capital Corporation.
(E) The Loan Guarantee Charge relates to a loan guarantee for
a Hughes Network Systems affiliate in India.
General Motors Corporation
Summary Corporate Financial Results
First Quarter
-------------
2003 2002
---- ----
Total net sales and
revenues ($Mil's) $49,365 $46,214
Adjusted $48,551 $46,243
Adjusted excluding Hughes
(Automotive and Financing) $46,324 $44,202
Net income ($Mil's) $1,483 $228
Adjusted $978 $645
Adjusted excluding Hughes $1,032 $791
Net margin
(net income / total net sales
and revenues) 3.0% 0.5%
Adjusted 2.0% 1.4%
Adjusted excluding Hughes 2.2% 1.8%
Earnings per share
Basic- $1-2/3 $2.71 $0.58
Diluted- $1-2/3 $2.71 $0.57
Basic- Class H ($0.04) ($0.14)
Diluted- Class H ($0.04) ($0.14)
Adjusted earnings per share
Basic - $1-2/3 $1.81 $1.32
Diluted - $1-2/3 $1.81 $1.29
Diluted - $1-2/3 excluding Hughes $1.84 $1.39
Basic- Class H ($0.04) ($0.13)
Diluted- Class H ($0.04) ($0.13)
GM $1-2/3 par value average shares
outstanding (Mil's)
Basic shares 561 559
Diluted shares 561 570
Cash dividends per share of
common stocks
GM $1-2/3 par value $0.50 $0.50
GM Class H - -
Book value per share of common
stocks at March 31
GM $1-2/3 par value $11.98 $24.58
GM Class H $2.40 $4.92
ACO total cash & marketable securities
at March 31 ($Bil's) $20.2 $15.4
Cash in short-term VEBA $3.4 $3.0
---- ----
ACO total cash & marketable
securities plus short-term VEBA $23.6 $18.4
less: Hughes cash & marketable
securities $3.0 $1.1
---- ----
Total Automotive cash & marketable
securities plus short-term VEBA $20.6 $17.3
==== ====
See reconciliation of adjusted financial results and
footnotes.
General Motors Corporation
Summary Corporate Financial Results
First Quarter
2003
--------------
(Dollars in millions)
Total net sales and Reported Special Items Adjusted
revenues -------- ------------ --------
GMNA $29,963 - $29,963
GME 6,622 - 6,622
GMLAAM 1,045 - 1,045
GMAP 1,147 - 1,147
------ ----- ------
Total GMA 38,777 - 38,777
Hughes 2,227 - 2,227
Other 1,038 (814) 224
------ ----- ------
Total ACO 42,042 (814) 41,228
------ ----- ------
GMAC 7,330 - 7,330
Other Financing (7) - (7)
------ ----- ------
Total FIO 7,323 - 7,323
------ ----- ------
Total net sales and
revenues $49,365 (814) $48,551
====== ===== ======
Income / (expense)
before income taxes and
minority interest
GMNA $739 - $739
GME (114) - (114)
GMLAAM (17) - (17)
GMAP 19 - 19
----- ----- -----
Total GMA 627 - 627
Hughes (50) - (50)
Other 449 (814) (365)
----- ----- -----
Total ACO 1,026 (814) 212
----- ----- -----
GMAC 1,147 - 1,147
Other Financing (25) - (25)
----- ----- -----
Total FIO 1,122 - 1,122
Total income / ----- ----- -----
(expense) before
income taxes and
minority interests $2,148 (814) $1,334
===== ===== =====
General Motors Corporation
Summary Corporate Financial Results
First Quarter
2003
---------------
(Dollars in millions) Reported Special Items Adjusted
-------- ------------ --------
Net income
GMNA $548 - $548
GME (65) - (65)
GMLAAM (12) - (12)
GMAP 75 - 75
----- --- ---
Total GMA 546 - 546
Hughes (54) - (54)
Other 309 (505) (196)
----- --- ---
Total ACO 801 (505) 296
GMAC 699 - 699
Other Financing (17) - (17)
----- --- ---
Total FIO 682 - 682
----- --- ---
Net income (loss) $1,483 $(505) $978
===== === ===
Income tax expense
(benefit)
GMNA $191 - $191
GME (43) - (43)
GMLAAM (7) - (7)
GMAP 11 - 11
--- --- ---
Total GMA 152 - 152
Hughes (26) - (26)
Other 100 (309) (209)
--- --- ---
Total ACO 226 (309) (83)
--- --- ---
GMAC 438 - 438
Other Financing (8) - (8)
--- --- ---
Total FIO 430 - 430
--- --- ---
Income tax expense
(benefit) $656 (309) $347
=== === ===
Effective tax rate
GMNA 25.8% - 25.8%
GME 37.7% - 37.7%
GMLAAM 41.2% - 41.2%
GMAP 57.9% - 57.9%
Hughes 52.0% - 52.0%
GMAC 38.2% - 38.2%
Total GM Corp. 30.5% 38.0% 26.0%
Equity income (loss)
and minority interests
GMNA $ - - $ -
GME 6 - 6
GMLAAM (2) - (2)
GMAP 67 - 67
-- -- --
Total GMA $71 - $71
== == ==
General Motors Corporation
Summary Corporate Financial Results
First Quarter
2002
-------------
(Dollars in millions)
Total net sales and Reported Special Items Adjusted
revenues -------- ------------ --------
GMNA $29,339 - $29,339
GME 5,584 - 5,584
GMLAAM 1,301 - 1,301
GMAP 1,057 - 1,057
------ -- ------
Total GMA 37,281 - 37,281
Hughes 2,012 29 2,041
Other 480 - 480
------ -- ------
Total ACO 39,773 29 39,802
------ -- ------
GMAC 6,353 - 6,353
Other Financing 88 - 88
------ -- ------
Total FIO 6,441 - 6,441
------ -- ------
Total net sales and
revenues $46,214 29 $46,243
====== == ======
Income / (expense) before
income taxes and minority
interest
GMNA $938 - $938
GME (798) 641 (157)
GMLAAM (41) - (41)
GMAP (13) - (13)
--- --- -----
Total GMA 86 641 727
Hughes (231) 17 (214)
Other (235) - (235)
--- --- -----
Total ACO (380) 658 278
--- --- -----
GMAC 736 - 736
Other Financing (2) - (2)
--- --- -----
Total FIO 734 - 734
--- --- -----
Total income / (expense)
before income taxes and
minority interests $354 658 $1,012
=== === =====
General Motors Corporation
Summary Corporate Financial Results
First Quarter
2002
-------------
(Dollars in millions) Reported Special Items Adjusted
-------- ------------ --------
Net income
GMNA $654 - $654
GME (532) 407 (125)
GMLAAM (40) - (40)
GMAP 7 - 7
--- --- ---
Total GMA 89 407 496
Hughes (1) (156) 10 (146)
Other (142) - (142)
--- --- ---
Total ACO (209) 417 208
--- --- ---
GMAC 439 - 439
Other Financing (2) - (2)
--- --- ---
Total FIO 437 - 437
--- --- ---
Net income (loss) $228 417 $645
=== === ===
Income tax expense
(benefit)
GMNA $272 - $272
GME (260) 234 (26)
GMLAAM (1) - (1)
GMAP - - -
--- --- ---
Total GMA $11 234 $245
Hughes (92) 7 (85)
Other (79) - (79)
--- --- ---
Total ACO (160) 241 81
--- --- ---
GMAC 285 - 285
Other Financing - - -
--- --- ---
Total FIO 285 - 285
--- --- ---
Income tax expense
(benefit) $125 241 $366
=== === ===
Effective tax rate
GMNA 29.0% - 29.0%
GME 32.6% 36.5% 16.6%
GMLAAM 2.4% - 2.4%
GMAP - - -
Hughes 39.8% 41.2% 39.7%
GMAC 38.7% - 38.7%
Total GM Corp. 35.3% 36.6% 36.2%
Equity income (loss)
and minority interests
GMNA $(12) - $(12)
GME 6 - 6
GMLAAM - - -
GMAP 20 - 20
-- -- --
Total GMA $14 - $14
== == ==
See footnotes.
General Motors Corporation
Operating Statistics
First Quarter
-------------
2003 2002
---- ----
(units in thousands)
Worldwide Wholesale Sales
United States - Cars 500 499
United States - Trucks 756 667
----- -----
Total United States 1,256 1,166
Canada, Mexico, and Other 182 196
----- -----
Total GMNA 1,438 1,362
GME 427 424
GMLAAM 121 155
GMAP 142 108
----- -----
Total Worldwide 2,128 2,049
===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 171 185
Chevrolet - Trucks 373 465
Pontiac 107 118
GMC 108 127
Buick 83 83
Oldsmobile 33 43
Saturn 75 57
Cadillac 46 40
Other 22 12
----- -----
Total United States 1,018 1,130
Canada, Mexico, and Other 151 178
----- -----
Total GMNA 1,169 1,308
GME 473 465
GMLAAM 128 139
GMAP 166 159
----- -----
Total Worldwide 1,936 2,071
===== =====
Market Share
United States - Cars 24.9% 24.7%
United States - Trucks 28.2% 31.4%
Total United States 26.6% 28.2%
Total North America 26.1% 28.0%
Total Europe 9.6% 9.2%
Total LAAM 15.8% 15.3%
Asia and Pacific 4.1% 4.4%
Total Worldwide 13.6% 14.5%
U.S. Fleet Deliveries %
% Fleet Sales - Cars 30.3% 24.9%
% Fleet Sales - Trucks 14.7% 10.3%
Total Vehicles 21.6% 16.4%
Retail Lease as % of Retail Sales
Total Smartlease and Smartbuy 13.9% 9.7%
Days Supply of Inventory at March 31
United States - Cars 88 73
United States - Trucks 109 75
GMNA Capacity Utilization
(2 shift rated) 91.1% 83.2%
GMNA Net Price (3.2%) (1.0%)
General Motors Corporation
Operating Statistics
First Quarter
-------------
2003 2002
---- ----
GMAC's U.S. Cost of Borrowing 3.53% 4.32%
Current Debt Spreads Over U.S.
Treasuries
2 Year 290 bp 170 bp
5 Year 310 bp 180 bp
10 Year 350 bp 205 bp
Worldwide Employment at
March 31, Excluding Contract (in 000's)
United States Hourly 121 124
United States Salary 41 42
--- ---
Total United States 162 166
Canada, Mexico, and Other 32 33
--- ---
GMNA 194 199
GME 66 71
GMLAAM 23 23
GMAP 12 11
Hughes 9 13
GMAC 31 30
Other 7 12
--- ---
Total 342 359
=== ===
Worldwide Payrolls ($Mil's) $5,388 $5,040
Footnotes:
---------
(1) Excludes 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
March 31,
--------------------
2003 2002
---- ----
(dollars in millions
except per share
amounts)
Total net sales and revenues $49,365 $46,214
------ ------
Cost of sales and other expenses 39,383 38,401
Selling, general, and administrative expenses 5,706 5,601
Interest expense 2,128 1,858
------- -------
Total costs and expenses 47,217 45,860
Income before income taxes and minority interests 2,148 354
Income tax expense 656 125
Equity income (loss) and minority interests (9) (1)
----- -----
Net income 1,483 228
Dividends on preference stocks - (24)
----- ---
Earnings attributable to common stocks $1,483 $204
===== ===
Basic earnings (losses) per share attributable to
common stocks
Earnings per share attributable to $1-2/3 par value $2.71 $0.58
==== ====
Earnings per share attributable to Class H $(0.04) $(0.14)
==== ====
Earnings (losses) per share attributable to common
stocks assuming dilution
Earnings per share attributable to $1-2/3 par value $2.71 $0.57
==== ====
Earnings per share attributable to Class H $(0.04) $(0.14)
==== ====
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
--------------------
2003 2002
---- ----
(dollars in
millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER
OPERATIONS
Total net sales and revenues $42,042 $39,773
------- ------
Cost of sales and other expenses 37,313 36,211
Selling, general, and administrative expenses 3,341 3,690
------- -------
Total costs and expenses 40,654 39,901
------ ------
Interest expense 321 162
Net expense from transactions with
Financing and Insurance Operations 41 90
------ ----
Income (loss) before income taxes and minority
interests 1,026 (380)
Income tax expense (benefit) 226 (160)
Equity income (loss) and minority interests 1 11
----- ----
Net income (loss) - Automotive, Communications
Services, and Other Operations $801 $(209)
=== ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $7,323 $6,441
----- -----
Interest expense 1,807 1,696
Depreciation and amortization expense 1,506 1,361
Operating and other expenses 2,177 1,905
Provisions for financing and insurance losses 752 835
------ ------
Total costs and expenses 6,242 5,797
----- -----
Net income from transactions with Automotive,
Communications Services, and Other Operations (41) (90)
--------- ----
Income before income taxes and minority interests 1,122 734
Income tax expense 430 285
Equity income/(loss) and minority interests (10) (12)
---- ---
Net income - Financing and Insurance Operations $682 $437
=== ===
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
Mar. 31, Dec. 31, Mar. 31,
2003 2002 2002
(Unaudited) (Unaudited)
--------- ------- ---------
ASSETS (dollars in millions)
Cash and cash equivalents $26,982 $21,449 $19,049
Marketable securities 16,841 16,825 13,282
------ ------ ------
Total cash and marketable securities 43,823 38,274 32,331
Finance receivables - net 141,273 134,647 112,686
Accounts and notes receivable (less
allowances) 16,209 15,715 11,091
Inventories (less allowances) 10,769 9,967 9,802
Deferred income taxes 39,000 39,865 28,677
Equipment on operating leases - (less
accumulated depreciation) 36,997 32,988 32,378
Equity in net assets of nonconsolidated
associates 4,976 5,044 4,871
Property - net 37,681 37,514 35,512
Intangible assets - net 17,975 17,954 16,972
Other assets 33,733 37,028 40,360
------ ------- -------
Total assets $382,436 $368,996 $324,680
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable (principally trade) $28,738 $27,452 $27,465
Notes and loans payable 211,726 201,940 166,470
Postretirement benefits other than
pensions 38,239 38,187 38,586
Pensions 22,536 22,762 11,113
Deferred income taxes 7,342 7,178 6,318
Accrued expenses and other liabilities 63,654 63,829 54,386
-------- ------- ------
Total liabilities 372,235 361,348 304,338
Minority interests 835 834 766
Stockholders' equity
$1-2/3 par value common stock
(outstanding, 560,616,422;
560,447,797; and 560,021,275 shares) 934 936 934
Class H common stock (outstanding,
1,107,517,793; 958,284,272;
and 877,777,148 shares) 111 96 88
Capital surplus (principally additional
paid-in capital) 22,808 21,583 21,589
Retained earnings 11,234 10,031 9,387
------ ------ -----
Subtotal 35,087 32,646 31,998
Accumulated foreign currency translation
adjustments (2,665) (2,784) (3,014)
Net unrealized loss on derivatives (196) (205) (256)
Net unrealized gains on securities 344 372 428
Minimum pension liability adjustment (23,204) (23,215) (9,580)
------ ------ -------
Accumulated other comprehensive loss (25,721) (25,832) (12,422)
------ ------ ------
Total stockholders' equity 9,366 6,814 19,576
------- ------- -------
Total liabilities and stockholders'
equity $382,436 $368,996 $324,680
======= ======= =======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
Mar. 31, Dec. 31, Mar. 31,
2003 2002 2002
(Unaudited) (Unaudited)
--------- ------ ---------
ASSETS (dollars in millions)
Automotive, Communications Services, and
Other Operations
Cash and cash equivalents $16,977 $13,291 $14,656
Marketable securities 3,239 2,174 781
------- ------- --------
Total cash and marketable securities 20,216 15,465 15,437
Accounts and notes receivable (less
allowances) 6,085 5,861 5,957
Inventories (less allowances) 10,769 9,967 9,802
Equipment on operating leases - (less
accumulated depreciation) 5,661 5,305 3,675
Deferred income taxes and other current
assets 10,957 10,816 7,974
------ ------ -------
Total current assets 53,688 47,414 42,845
Equity in net assets of nonconsolidated
associates 4,976 5,044 4,871
Property - net 35,856 35,693 33,888
Intangible assets - net 14,637 14,611 13,745
Deferred income taxes 30,473 31,431 22,826
Other assets 7,753 7,781 17,494
------- ------- --------
Total Automotive, Communications
Services, and Other Operations assets 147,383 141,974 135,669
Financing and Insurance Operations
Cash and cash equivalents 10,005 8,158 4,393
Investments in securities 13,602 14,651 12,501
Finance receivables - net 141,273 134,647 112,686
Investment in leases and other
receivables 39,476 35,517 31,794
Other assets 30,697 34,049 27,637
Net receivable from Automotive,
Communications Services, and
Other Operations 486 1,089 477
------- ------- ------
Total Financing and Insurance Operations
assets 235,539 228,111 189,488
------- ------- -------
Total assets $382,922 $370,085 $325,157
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive, Communications Services, and
Other Operations
Accounts payable (principally trade) 21,659 $20,169 $19,367
Loans payable 815 1,516 1,591
Accrued expenses 41,718 40,518 34,352
Net payable to Financing and Insurance
Operations 486 1,089 477
-------- ------- --------
Total current liabilities 64,678 63,292 55,787
Long-term debt 19,228 16,651 16,797
Postretirement benefits other than
pensions 34,291 34,275 34,719
Pensions 22,481 22,709 11,072
Other liabilities and deferred income
taxes 15,307 15,461 13,741
-------- -------- --------
Total Automotive, Communications
Services, and Other Operations
liabilities 155,985 152,388 132,116
Financing and Insurance Operations
Accounts payable 7,079 7,283 8,098
Debt 191,683 183,773 148,082
Other liabilities and deferred income
taxes 17,974 18,993 16,519
-------- ------- --------
Total Financing and Insurance Operations
liabilities 216,736 210,049 172,699
------- ------- -------
Total liabilities 372,721 362,437 304,815
Minority interests 835 834 766
Stockholders' equity
$1-2/3 par value common stock
(outstanding, 560,616,422;
560,447,797; and 560,021,275 shares) 934 936 934
Class H common stock (outstanding,
1,107,517,793; 958,284,272;
and 877,777,148 shares) 111 96 88
Capital surplus (principally additional
paid-in capital) 22,808 21,583 21,589
Retained earnings 11,234 10,031 9,387
------ ------ --------
Subtotal 35,087 32,646 31,998
Accumulated foreign currency translation
adjustments (2,665) (2,784) (3,014)
Net unrealized loss on derivatives (196) (205) (256)
Net unrealized gains on securities 344 372 428
Minimum pension liability adjustment (23,204) (23,215) (9,580)
------ ------ ------
Accumulated other comprehensive loss (25,721) (25,832) (12,422)
------ ------ ------
Total stockholders' equity 9,366 6,814 19,576
------- ------- -------
Total liabilities and stockholders'
equity $382,922 $370,085 $325,157
======= ======= =======
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)
Three Months Ended
March 31,
------------------------
2003 2002
---- ----
(dollars in millions)
Net cash provided by (used in) operating
activities $10,055 $7,707
Cash flows from investing activities
Expenditures for property (1,686) (1,904)
Investments in marketable securities -
acquisitions (2,830) (12,883)
Investments in marketable securities -
liquidations 2,906 12,182
Net change in mortgage servicing rights (461) (551)
Increase in finance receivables (33,775) (32,185)
Proceeds from sales of finance receivables 23,446 28,196
Operating leases - acquisitions (3,661) (2,991)
Operating leases - liquidations 2,510 2,307
Investments in companies, net of cash
acquired (32) (161)
Proceeds from sale of business units 1,076 -
Other (504) 318
------ -----
Net cash (used in) provided by investing
activities (13,011) (7,672)
------ -----
Cash flows from financing activities
Net decrease in loans payable (585) (6,391)
Long-term debt - borrowings 19,391 13,667
Long-term debt - repayments (10,066) (6,543)
Proceeds from issuing common stocks - 50
Proceeds from sales of treasury stocks - 19
Cash dividends paid to stockholders (280) (304)
----- -----
Net cash provided by (used in) financing
activities 8,460 498
----- ---
Effect of exchange rate changes on cash and
cash equivalents 29 (39)
-- ----
Net increase (decrease) in cash and cash
equivalents 5,533 494
Cash and cash equivalents at beginning of
the period 21,449 18,555
------ ------
Cash and cash equivalents at end of the
period $26,982 $19,049
====== ======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Automotive, Comm. Financing and
Serv. and Other Insurance
----------------- --------------
Three Months Ended March 31,
------------------------------------
2003 2002 2003 2002
---- ---- ---- ----
(dollars in millions)
Net cash provided by (used in)
operating activities $4,681 $3,762 $5,374 $3,945
Cash flows from investing activities
Expenditures for property (1,582) (1,888) (104) (16)
Investments in marketable securities
- acquisitions (1,155) (399) (1,675) (12,484)
Investments in marketable securities
- liquidations 90 408 2,816 11,774
Net change in mortgage servicing
rights - - (461) (551)
Increase in finance receivables - - (33,775) (32,185)
Proceeds from sales of finance
receivables - - 23,446 28,196
Operating leases - acquisitions - - (3,661) (2,991)
Operating leases - liquidations - - 2,510 2,307
Investments in companies, net of cash
acquired (32) (39) - (122)
Proceeds from sale of business units 1,076 - - -
Other (306) 524 (198) (206)
----- --- ------ -----
Net cash (used in) provided by
investing activities (1,909) (1,394) (11,102) (6,278)
------ ----- ------- -----
Cash flows from financing activities
Net increase (decrease) in loans
payable (733) (811) 148 (5,580)
Long-term debt - borrowings 2,566 6,414 16,825 7,253
Long-term debt - repayments (36) (392) (10,030) (6,151)
Proceeds from issuing common stocks - 50 - -
Proceeds from sales of treasury stocks - 19 - -
Cash dividends paid to stockholders (280) (304) - -
----- ----- ----- ------
Net cash provided by (used in)
financing activities 1,517 4,976 6,943 (4,478)
----- ----- ----- ------
Effect of exchange rate changes on
cash and cash equivalents 1 (40) 28 1
Net transactions with
Automotive/Financing Operations (604) (1,080) 604 1,080
----- ----- --- -----
Net increase (decrease) in cash and
cash equivalents 3,686 6,224 1,847 (5,730)
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 $16,977 $14,656 $10,005 $4,393
====== ====== ====== =====
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- 04/15/2003 P
/CONTACT: Toni Simonetti, +1-212-418-6380, or Jerry Dubrowski,
+1-212-418-6261, both of General Motors Corporation/
/Web site: http://media.gm.com /
/Web site: http://www.gm.com /
(GM)
CO: General Motors Corporation
ST: Michigan
IN: AUT FIN ARO CPR ENT TVN
SU: ERN ERP TNM
Friday, 3rd January 2025
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