3rd Quarter Results
-- GM Earned $696 Million, Or $1.24 Per Share, Excluding Special
Items And Hughes
-- Net Loss Totals $804 Million, Or $1.42 Per Share, Including
Hughes And Special Items
-- Strong Cash Flow And Market Share Performance
-- 2002 Earnings Estimated At $6.75 Per Share, Up From $6.50
DETROIT, Oct. 15 -- General Motors Corp. (NYSE: GM, GMH)
today reported that earnings in the third quarter of 2002, excluding special
items and Hughes, totaled $696 million, or $1.24 diluted earnings per share of
GM $1-2/3 par value common stock, an improvement of more than 30 percent
compared with the same period last year.
The increase was primarily driven by strong market performance and
aggressive cost reductions at GM North America (GMNA), and continuing strength
at General Motors Acceptance Corp. (GMAC). The results compare with income of
$527 million, or $0.94 per share, in the third quarter of 2001, excluding
Hughes and special items.
Including Hughes and special items, GM had a reported net loss of $804
million, or $1.42 diluted earnings per share, compared with a loss of $368
million, or $0.41 per share, in the third quarter of 2001.
The third-quarter-2002 results include special items totaling an
unfavorable $1.42 billion, or $2.62 per share. This includes an unfavorable
$1.37 billion after-tax ($2.2 billion pretax) non-cash impairment write-down
of GM's investment in Fiat Auto Holdings, B.V., resulting from the completion
of the previously announced study of GM's original $2.4 billion carrying value
for that investment; an unfavorable $116 million after-tax ($186 million
pretax) net charge related to post-employment benefits and asset write-downs
as a result of changes in GMNA's production footprint -- primarily costs
associated with the transfer of commercial truck production from Janesville,
Wis., to Flint, Mich.; and a favorable $68 million after-tax ($109 million
pretax) net gain at Hughes primarily resulting from the sale of equity
interests. Special items in the third quarter of 2001 totaled an unfavorable
$753 million, or $1.26 per share.
GM financial results described throughout the remainder of this release
exclude special items unless otherwise noted (see Highlights).
'The strong performance by GM North America and GMAC demonstrate our
ability to produce improved results despite a difficult pricing environment,'
said GM Chairman Jack Smith.
'A steady stream of successful products and a rigorous cost focus continue
to move us in the right direction,' said GM President and Chief Executive
Officer Rick Wagoner. 'We're designing winning cars and trucks, producing
them efficiently, and maintaining our leadership position in the market. Our
operations in North America are running very well, and we're striving for the
same level of performance in other regions. We continue to face challenges,
but our strong operating performance is the key to addressing them.'
GM's net liquidity, excluding GMAC and Hughes, increased approximately
$700 million from June 30, 2002, to $3.3 billion at Sept. 30, 2002.
Automotive operations generated about $600 million of cash flow during the
quarter. On that same basis, cash, marketable securities, and assets of the
Voluntary Employees' Beneficiary Association (VEBA) trust invested in short-
term fixed-income securities increased to $18.2 billion at Sept. 30, 2002,
from $17.6 billion at June 30, 2002. Debt, excluding GMAC and Hughes,
decreased slightly to $14.9 billion at the end of the third quarter of 2002,
compared with $15.0 billion at June 30, 2002.
Strong cash generation is vital to meet the challenges posed by weak
returns in the equity markets and the increasing cost of employee benefits
that continue to adversely affect GM's balance sheet. GM disclosed today that
through the first nine months of 2002 the return on assets held in the U.S.
hourly and salaried employee pension funds was approximately negative 10
percent. During this same period, the overall U.S. equities market declined
more than 25 percent, as measured by the major stock indices. The fund
performance year to date, combined with other factors, is expected to result
in a significant increase in the unfunded status of the pension funds and an
increase in 2003 pension expense.
GM AUTOMOTIVE OPERATIONS
GM's global automotive operations earned $345 million in the third quarter
of 2002, an increase of more than 60 percent compared with the $212 million
earned in the prior-year period.
Income at GM North America (GMNA) increased more than 14 percent in the
third quarter of 2002 to $510 million, compared with $445 million earned in
the year-ago period. Production volume increased 5.6 percent. The pricing
environment continued to be challenging, with net price retention totaling a
negative 2.2 percent in the third quarter of 2002. Strong cost
performance more than offset the pricing pressures.
Continuing the trend so far this year, GM's overall U.S. market share
increased again in the third quarter of 2002, with this year's 28.0 percent
share up 0.3 points versus the same quarter last year. Retail market share
continued to show strong growth. Trucks accounted for about 57 percent of
total sales in the third quarter, compared with 53 percent in the same period
last year.
'The improved vehicle sales and increased share were the result of
excellent consumer acceptance of our new cars and trucks, combined with a
focus on being competitive in the marketplace,' Wagoner said. 'As we continue
to leverage our global resources and bring out more new and exciting products,
we plan to remain the market leader globally and in North America, and improve
our position in other regions.'
Major product enhancements introduced in the third quarter include the
restyled Chevrolet Silverado and GMC Sierra, and updated versions of Chevrolet
Cavaliers, Pontiac Sunfires, and Saturn L series. They follow the
introduction earlier this year of extended versions of the popular Chevy
TrailBlazer and GMC Envoy, along with the all-new HUMMER H2. Coming to market
later this year and in 2003 are the Saturn ION sedan and coupe, all-new
versions of the Saab 9-3 sedan and convertible, the Chevy SSR, the Pontiac
Grand Prix, the Chevy Malibu, the Cadillac XLR luxury high-performance
roadster, the Cadillac SRX crossover vehicle, the Buick Rainier sport utility
vehicle, and the Opel Vectra Signum, Vectra Wagon, and the new Meriva monocab
in Europe.
GM Europe (GME) reported a loss of $180 million in the third quarter of
2002, an improvement from the $287 million loss in the year-ago period.
Compared with the same period last year, the significant progress in reducing
material and structural costs more than offset a decline in vehicle sales and
costs associated with the launch of the all-new Saab 9-3. GME continued to
face weak market conditions, particularly in Germany, and a challenging
pricing environment.
'GM Europe's turnaround remains a top priority. We've made very good
progress on the cost side, and now the focus is on improving revenue growth,'
Wagoner said. 'We expect that the strong products coming from Opel/Vauxhall
and Saab will lead to improved sales.'
GM Asia-Pacific reported a profit of $76 million in the third quarter of
2002 compared with earnings of $60 million a year ago, led by continued strong
performance at Shanghai GM and GM's Australia-based Holden unit. GM Latin
America/Africa/Mid-East (GMLAAM) reported a loss of $61 million in the third
quarter of 2002 compared with a loss of $6 million a year ago. Results were
negatively affected by unfavorable economic and market conditions in Brazil,
Venezuela and Argentina. On the positive side, GM's market share in the
region increased significantly to 18.2 percent in the third quarter of 2002,
compared with 15.8 percent in the prior-year period.
GMAC
GMAC earned $476 million in the third quarter of 2002, an increase of
nearly 9 percent from third-quarter earnings of $437 million a year ago. The
increase was more than accounted for by improvements in mortgage operations,
resulting from increased volumes and fees.
'GMAC's capital position has strengthened significantly,' Wagoner said.
'Based on estimated asset and earnings growth next year, GMAC's leverage
should remain stable without any need for incremental capital from GM.'
HUGHES
Hughes lost $81 million in the third quarter of 2002, an improvement
compared with the loss of $142 million in the prior-year quarter, primarily
because of stronger performance by DIRECTV U.S. Revenue totaled $2.2 billion
in the third quarter of 2002, up from $2.1 billion in the same quarter last
year, led by the growing subscriber base of DIRECTV. Total DIRECTV U.S.
subscriptions increased approximately 206,000 from the second quarter of 2002
to 10.9 million.
Despite the unfavorable initial review by the Federal Communications
Commission (FCC) GM, Hughes and EchoStar continue to work with the FCC and the
U.S. Justice Department to resolve any concerns about the plan to split off
Hughes and merge the company with EchoStar Communications Corp. GM believes
this transaction is in the best interest of consumers, and all classes
of shareholders, and will work aggressively to obtain approval.
LOOKING AHEAD
General Motors expects total U.S. industry vehicle sales for 2002 will be
approximately 17 million units. North American production is forecast at
about 1.4 million vehicles in the fourth quarter of 2002, and more than 5.6
million vehicles in calendar year 2002.
For the fourth quarter of 2002, GM estimates its earnings, excluding
Hughes and any special items, will be about $1.50 per share, reflecting higher
volume and solid results in North America and at GMAC, partially offset by
continued losses in Europe and Latin America.
GM expects 2002 earnings will be about $6.75 per share, excluding special
items and Hughes. Including Hughes, but excluding special items, GM expects
to earn approximately $1.40 per share in the fourth quarter of 2002 and $6.35
per share for the calendar year.
For 2003, GM expects moderate economic growth and resulting U.S. industry
sales in the mid-to-high-16 million-unit range.
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 'outlook,' 'expect,' 'anticipate,' 'estimate,'
'forecast,' 'project,' 'likely,' 'objective,' 'plan,' 'designed,' '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-15, 16) 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 or
interruptions in transportation systems, 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'), HEC Holdings, Inc. ('Hughes Holdings') and EchoStar Communications
Corporation ('EchoStar') have filed amended preliminary materials with the
Securities and Exchange Commission ('SEC'), including a Registration Statement
of Hughes Holdings on Form S-4 that contains a consent solicitation
statement/information statement/prospectus. These materials are not yet final
and will be further amended. Holders of GM $1-2/3 and GM Class H common stock
are urged to read the definitive versions of 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. The preliminary materials, the definitive versions of these
materials and other relevant materials (when they become available), and any
other documents filed by GM, Hughes Electronics Corporation ('Hughes'), Hughes
Holdings or EchoStar with the SEC may be obtained for free 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.
GM and its directors and executive officers, Hughes and certain of its
officers, and EchoStar and certain of its executive officers may be deemed to
be participants in GM's solicitation of consents from the holders of GM $1-2/3
common stock and GM Class H common stock in connection with the proposed
transactions. Information regarding the participants and their interests in
the solicitation was filed pursuant to Rule 425 with the SEC by EchoStar on
November 1, 2001 and by each of GM and Hughes on November 16, 2001. Investors
may obtain additional information regarding the interests of the participants
by reading the amended preliminary consent solicitation statement/information
statement/prospectus filed with the SEC and the definitive consent
solicitation statement/information statement/prospectus when it becomes
available.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy, 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 our 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, EchoStar, Hughes, or a combined EchoStar and Hughes, to
differ materially, many of which are beyond the control of EchoStar, Hughes,
Hughes Holdings or GM include, but are not limited to, the following: (1) the
businesses of EchoStar and Hughes may not be integrated successfully or such
integration may be more difficult, time-consuming or costly than expected; (2)
expected benefits and synergies from the combination may not be realized
within the expected time frame or at all; (3) revenues following the
transaction may be lower than expected; (4) 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; (5) generating the incremental growth
in the subscriber base of the combined company may be more costly or difficult
than expected; (6) the regulatory approvals required for the transaction may
not be obtained on the terms expected or on the anticipated schedule; (7) the
effects of legislative and regulatory changes; (8) an inability to obtain
certain retransmission consents; (9) an inability to retain necessary
authorizations from the FCC; (10) 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; (11) the introduction of new technologies and competitors into the
subscription television business; (12) changes in labor, programming,
equipment and capital costs; (13) future acquisitions, strategic partnership
and divestitures; (14) general business and economic conditions; and (15)
other risks described from time to time in periodic reports filed by
EchoStar, Hughes or GM with the Securities and Exchange Commission. 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)
Third Quarter 2002
----------------------------------------
Other Total Diluted
GMNA Hughes ACO GM EPS
----- ------ ----- ------ --------
Reported Net Income
(Loss) $394 $(13) $(1,463) $(804) $(1.42)
Write-down of
Fiat Investment (A) - - 1,371 1,371 2.44
GMNA Production Footprint(B) 116 - - 116 0.21
Hughes Sale of Equity
Interests (C) - (68) - (68) (0.03)
--- --- --- --- ----
Adjusted Net Income (Loss) $510 $(81) $(92) $615 $1.20
=== == == === ====
Year to Date 2002
------------------------------------------
Other Total Diluted
GMNA GME Hughes ACO GM EPS
---- --- ------ ----- ----- -------
Reported Net Income
(Loss) $2,267 $(882) $(325) $(1,604) $716 $1.63
Write-down of
Fiat Investment (A) - - - 1,371 1,371 2.43
GMNA Production
Footprint(B) 116 - - 116 0.20
Hughes Sale of Equity
Interests (C) - - (68) - (68) (0.04)
GME End of Life Vehicle
Charge (D) - 55 - - 55 0.10
GME Restructuring
Charge (E) - 407 - - 407 0.73
Hughes Space Shuttle
Settlement (F) - - (59) - (59) (0.04)
Hughes GECC Contractual
Dispute (G) - - 51 - 51 0.03
Hughes Loan Guarantee
Charge (H) - - 18 - 18 0.01
----- --- --- --- ---- ----
Adjusted Net Income
(Loss) $2,383 $(420) $(383) $(233) $2,607 $5.05
===== === === === ===== ====
General Motors Corporation
List of Special Items - After Tax
(A) The Write-down of the Fiat Investment relates to the completion
of the previously announced impairment study of the carrying
value of Fiat Auto Holdings, B.V.. This charge reduced the
value of the Fiat investment 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
investment in the multimedia company Thomson.
(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 to the responsibility of manufacturers for
dismantling and recycling vehicles they have sold. This charge of
$55 million relates to those member states that have passed
national laws by June 30, 2002.
(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 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 GECC Contractual Dispute relates to an expected loss associated
with a contractual dispute with General Electric Capital Corporation.
(H) The Loan Guarantee Charge relates to a loan guarantee for a Hughes
Network Systems' affiliate in India.
General Motors Corporation
List of Special Items - After Tax
(dollars in millions)
Third Quarter 2001
----------------------------------------
Other Total Diluted
GMNA Hughes ACO GM EPS
----- ------ ----- ------ --------
Reported Net Income (Loss) $251 $(227) $(595) $(368) $(0.41)
Ste. Therese Charge (A) 194 - - 194 0.35
Raytheon Settlement (B) - - 474 474 0.86
Gain on Sale of Thomson (C) - (67) - (67) (0.04)
SkyPerfecTV! Writedown (D) - 133 - 133 0.08
Severance Charge (E) - 40 - 40 0.02
DirecTV Japan Adjustment (F) - (21) - (21) (0.01)
--- --- --- --- ----
Adjusted Net Income (Loss) $445 $(142) $(121) $385 $0.85
=== === === === ====
(A) The Ste. Therese Charge relates to the closing of the Ste.
Therese, Quebec assembly plant.
(B) The Raytheon Settlement relates to Hughes' settlement with
the Raytheon Company of a purchase price adjustment related
to Raytheon's 1997 merger with Hughes Defense.
(C) The Gain on Sale of Thomson relates to Hughes' sale of
4.1 million shares of Thomson Multimedia common stock.
(D) The SkyPerfecTV! Writedown relates to Hughes' non-cash
charge from the revaluation of its investment.
(E) The Severance Charge relates to Hughes' 10% company-wide
workforce reduction in the U.S.
(F) The DirecTV Japan Adjustment relates to a favorable
adjustment to the expected costs associated with the shutdown
of Hughes' DirecTV Japan business.
General Motors Corporation
List of Special Items - After Tax
(dollars in millions)
Year to Date 2001
----------------------------------------
Other
GMNA GME GMLAAM GMAP Hughes ACO
---- --- ------ ---- ------ -----
Reported Net Income (Loss) $878 $(525) $30 $(82) $(487) $(796)
Ste. Therese Charge (A) 194 - - - - -
Raytheon Settlement (B) - - - - - 474
Gain on Sale of Thomson (C) - - - - (67) -
SkyPerfecTV! Writedown (D) - - - - 133 -
Severance Charge (E) - - - - 40 -
DirecTV Japan Adjustment (F) - - - - (21) -
Isuzu Restructuring (G) - - - 133 - -
SFAS 133 Adjustment (H) 14 (2) 1 1 8 -
----- --- --- --- --- ---
Adjusted Net Income(Loss) $1,086 $(527) $31 $52 $(394) $(322)
===== === == == === ===
Total Other Total Diluted
ACO GMAC FIO GM EPS
----- ------ ----- ----- -------
Reported Net Income (Loss) $(982) $1,351 $(23) $346 $1.16
Ste. Therese Charge (A) 194 - - 194 0.35
Raytheon Settlement (B) 474 - - 474 0.86
Gain on Sale of Thomson (C) (67) - - (67) (0.04)
SkyPerfecTV! Writedown (D) 133 - - 133 0.08
Severance Charge (E) 40 - - 40 0.02
DirecTV Japan Adjustment (F) (21) - - (21) (0.01)
Isuzu Restructuring (G) 133 - - 133 0.24
SFAS 133 Adjustment (H) 22 (34) - (12) (0.03)
--- ----- --- ---- ----
Adjusted Net Income (Loss) $(74) $1,317 $(23) $1,220 $2.63
== ===== == ===== ====
(G) The Isuzu Restructuring Charges include General Motors'
portion of severance payments and asset impairments that
were part of the second quarter restructuring of its
affiliate Isuzu Motors Ltd.
(H) The SFAS 133 Adjustment represents the net impact during
the first quarter 2001 from initially adopting SFAS No. 133,
Accounting for Derivatives and Hedging Activities.
General Motors Corporation
Adjusted Corporate Financial Results
Third Quarter Year to Date
--------------- --------------
2002(1) 2001(1) 2002(1) 2001(1)
---- ---- ---- ----
Total net sales and
revenues ($Mil's) (2) $43,603 $42,475 $138,161 $131,318
Excluding Hughes $41,400 $40,362 $131,676 $125,285
Consolidated net
income ($Mil's) $615 $385 $2,607 $1,220
Excluding Hughes $696 $527 $2,990 $1,614
Net margin from
consolidated net income 1.4% 0.9% 1.9% 0.9%
Excluding Hughes 1.7% 1.3% 2.3% 1.3%
GM $1-2/3 par value
earnings per share
Basic EPS $1.20 $0.86 $5.09 $2.65
Diluted EPS $1.20 $0.85 $5.05 $2.63
Diluted EPS excluding Hughes $1.24 $0.94 $5.29 $2.90
GM Class H
earnings per share
Basic EPS $(0.06) $(0.13) $(0.32) $(0.36)
Diluted EPS $(0.06) $(0.13) $(0.32) $(0.36)
Earnings attributable to
GM $1-2/3 par value ($Mil's)
Consolidated net income $615 $385 $2,607 $1,220
Preferred dividends - (25) (47) (76)
Losses attributable
to GM Class H 57 113 293 314
--- --- ----- -----
Total earnings attributable
to GM $1-2/3 par value $672 $473 $2,853 $1,458
=== === ===== =====
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 560 551 560 549
Diluted shares 561 558 565 556
Cash dividends per share
of common stocks
GM $1-2/3 par value $0.50 $0.50 $1.50 $1.50
GM Class H - - - -
Book value per share of
common stocks at Sept. 30
GM $1-2/3 par value $25.41 $37.44
GM Class H $5.08 $7.49
Total cash at Sept. 30
Excluding Hughes($Bil's) (3) $18.2 $11.0
Automotive, Communications Services,
and Other Operations ($Mil's)
Depreciation $1,108 $1,071 $3,293 $3,239
Amortization of special
tools 645 609 1,859 1,747
Amortization of intangible
assets 10 80 22 238
----- ----- ----- -----
Total $1,763 $1,760 $5,174 $5,224
===== ===== ===== =====
General Motors Corporation
Adjusted Segment Financial Results
Third Quarter Year to Date
-------------- --------------
2002(1) 2001(1) 2002(1) 2001(1)
---- ---- ---- ----
(dollars in millions)
Total net sales and revenues
GMNA $26,355 $26,269 $85,580 $79,492
GME 5,564 5,117 17,149 17,616
GMLAAM 1,161 1,312 3,768 4,446
GMAP 1,158 1,000 3,344 3,138
------ ------ ------- -------
Total GMA 34,238 33,698 109,841 104,692
Hughes 2,203 2,113 6,485 6,033
Other 241 486 1,876 1,467
------ ------ ------- -------
Total ACO 36,682 36,297 118,202 112,192
GMAC 6,799 6,116 19,727 18,915
Other Financing 122 62 232 211
------ ------ ------- -------
Total FIO 6,921 6,178 19,959 19,126
------ ------ ------- -------
Consolidated net sales
and revenues $43,603 $42,475 $138,161 $131,318
====== ====== ======= =======
Pre-tax income (loss)
GMNA $734 $641 $3,360 $1,523
GME (248) (400) (564) (747)
GMLAAM (96) (11) (234) 71
GMAP 9 9 (35) 44
--- --- ----- -----
Total GMA 399 239 2,527 891
Hughes (4) (104) (173) (548) (573)
Other (177) (143) (407) (402)
--- --- ----- -----
Total ACO 118 (77) 1,572 (84)
GMAC 789 710 2,223 2,142
Other Financing (24) (11) (34) (34)
--- --- ----- -----
Total FIO 765 699 2,189 2,108
--- --- ----- -----
Consolidated pre-tax
income $883 $622 $3,761 $2,024
=== === ===== =====
Net income (loss)
GMNA $510 $445 $2,383 $1,086
GME (180) (287) (420) (527)
GMLAAM (61) (6) (174) 31
GMAP 76 60 122 52
--- --- ----- -----
Total GMA 345 212 1,911 642
Hughes (4)(5) (81) (142) (383) (394)
Other (92) (121) (233) (322)
--- --- ----- -----
Total ACO 172 (51) 1,295 (74)
GMAC 476 437 1,346 1,317
Other Financing (33) (1) (34) (23)
--- --- ----- -----
Total FIO 443 436 1,312 1,294
--- --- ----- -----
Consolidated net income $615 $385 $2,607 $1,220
=== === ===== =====
See footnotes
General Motors Corporation
Supplementary Adjusted Segment Financial Results
Third Quarter Year to Date
-------------- --------------
2002(1) 2001(1) 2002(1) 2001(1)
---- ---- ---- ----
(dollars in millions)
Income tax expense (benefit)
GMNA $232 $179 $987 $387
GME (63) (112) (110) (212)
GMLAAM (47) (8) (79) 21
GMAP 21 (12) 12 7
-- -- --- ---
Total GMA $143 $47 $810 $203
=== == === ===
Equity income (loss) and
minority interests
GMNA $8 $(17) $10 $(50)
GME 5 1 34 8
GMLAAM (12) (3) (19) (19)
GMAP 88 39 169 15
-- -- -- --
Total GMA $89 $20 $194 $(46)
== == === ==
Effective income tax rate
GMNA 31.6% 27.9% 29.4% 25.4%
GME 25.4% 28.0% 19.5% 28.4%
GMLAAM 49.0% 72.7% 33.8% 29.6%
GMAP 233.3% (133.3%) (34.3%) 15.9%
Total ACO 29.0% 33.8% 29.0% 31.0%
Net margins
GMNA 1.9% 1.7% 2.8% 1.4%
GME (3.2%) (5.6%) (2.4%) (3.0%)
GMLAAM (5.3%) (0.5%) (4.6%) 0.7%
GMAP 6.6% 6.0% 3.6% 1.7%
Total GMA 1.0% 0.6% 1.7% 0.6%
Hughes (4)(5) (3.7%) (6.7%) (5.9%) (6.5%)
Total ACO 0.5% (0.1%) 1.1% (0.1%)
GMAC 7.0% 7.1% 6.8% 7.0%
Consolidated net income 1.4% 0.9% 1.9% 0.9%
See footnotes
General Motors Corporation
Operating Statistics
Third Quarter Year to Date
-------------- --------------
2002 2001 2002 2001
---- ---- ---- ----
(units in thousands)
Worldwide Wholesale Sales
United States - Cars 482 513 1,555 1,572
United States - Trucks 639 597 2,056 1,815
----- ----- ----- -----
Total United States 1,121 1,110 3,611 3,387
Canada, Mexico, and Other 152 146 581 483
----- ----- ----- -----
Total GMNA 1,273 1,256 4,192 3,870
GME 364 396 1,225 1,359
GMLAAM 162 154 476 500
GMAP 119 121 313 360
----- ----- ----- -----
Total Worldwide 1,918 1,927 6,206 6,089
===== ===== ===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 187 179 585 637
Chevrolet - Trucks 485 432 1,431 1,321
Pontiac 132 138 401 419
GMC 151 123 415 392
Buick 135 119 324 301
Oldsmobile 38 53 123 189
Saturn 66 49 212 200
Cadillac 56 46 145 125
Other 21 14 48 40
----- ----- ----- -----
Total United States 1,271 1,153 3,684 3,624
Canada, Mexico, and Other 183 166 572 514
----- ----- ----- -----
Total GMNA 1,454 1,319 4,256 4,138
GME 387 418 1,267 1,421
GMLAAM 169 159 483 498
GMAP 171 137 449 387
----- ----- ----- -----
Total Worldwide 2,181 2,033 6,455 6,444
===== ===== ===== =====
Market Share
United States - Cars 25.1% 26.6% 25.4% 27.2%
United States - Trucks 30.6% 28.6% 30.6% 28.4%
Total United States 28.0% 27.7% 28.1% 27.8%
Total North America 27.6% 27.2% 27.8% 27.4%
Total Europe 8.6% 9.0% 8.7% 9.3%
Latin America (6) 24.5% 22.3% 23.7% 22.1%
Asia and Pacific 4.7% 4.2% 4.2% 3.9%
Total Worldwide 15.2% 14.8% 14.8% 14.9%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 31.0% 29.3% 28.6% 28.9%
% Fleet Sales - Trucks 10.9% 12.1% 11.6% 14.0%
Total Vehicles 19.6% 20.2% 19.0% 21.3%
Retail Lease as % of Retail Sales
Total Smartlease
and Smartbuy 8.6% 12.5%
Days Supply of Inventory
at Sept. 30
United States - Cars 75 63
United States - Trucks 96 95
Capacity Utilization
U.S. and Canada
(2 shift rated) 86.8% 84.5% 85.6% 78.4%
GMNA Net Price (2.2)% (2.1)%
See footnotes
General Motors Corporation
Operating Statistics
Third Quarter Year to Date
-------------- --------------
2002 2001 2002 2001
---- ---- ---- ----
GMAC's U.S. Cost of Borrowing 4.31% 5.04%
Current Debt Spreads Over
U.S. Treasuries
2 Year 340 bp 205 bp
5 Year 360 bp 230 bp
10 Year 380 bp 245 bp
Worldwide Employment
at Sept. 30 (in 000's)
United States Hourly 120 126
United States Salary 40 42
--- ---
Total United States 160 168
Canada, Mexico, and Other 33 33
--- ---
GMNA 193 201
GME 68 74
GMLAAM 23 24
GMAP 11 11
Hughes 12 11
GMAC 31 29
Other 12 13
--- ---
Total 350 363
=== ===
Worldwide Payrolls ($Bil's) $5.1 $4.9 $15.5 $15.0
Footnotes:
---------
(1) Adjusted amounts for all periods represent the reported
amounts excluding the effects of special items as detailed
on previous pages.
(2) The reported total net sales and revenues totaled ($Mil's):
Q3 2002 - $43,578, Year-to-Date 2002 - $138,107,
Q3 2001 - $42,475, and Year-to-Date 2001 $131,310.
(3) Represents total cash for Automotive, Communications Services,
and Other Operations, excluding Hughes, which includes cash
and marketable securities, as well as $3.0 billion invested
in short-term fixed income securities of the Corporation's
Voluntary Employees' Beneficiary Association Trust.
(4) The Q3 2001 and Year-to-Date 2001 amounts exclude the effects
of purchase accounting adjustments related to General Motors'
acquisition of Hughes in 1985. This purchase accounting
adjustment is not recorded in 2002 because the related goodwill
is no longer being amortized effective January 1, 2002 in
accordance with SFAS No. 142, Goodwill and Other Intangible
Assets.
(5) Excludes Hughes Series A Preferred Stock dividends paid to
General Motors.
(6) Latin America excludes the Middle East and Africa.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -----------------
2002 2001 2002 2001
---- ---- ---- ----
(dollars in millions except per share amounts)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
Total net sales
and revenues $43,578 $42,475 $138,107 $131,310
------ ------ ------- -------
Cost of sales and
other expenses 36,774 34,946 113,517 106,757
Selling, general, and
administrative expenses 6,173 5,926 17,944 17,171
Interest expense 2,036 1,888 5,916 6,238
------ ------ ------- -------
Total costs and expenses 44,983 42,760 137,377 130,166
------ ------ ------- -------
Income (loss) before income
taxes and minority
interests (1,405) (285) 730 1,144
Income tax expense (551) 76 137 588
Equity income/(loss) and
minority interests 50 (7) 123 (210)
---- ---- ---- ----
Net income (loss) (804) (368) 716 346
Dividends on preference stocks - (25) (47) (76)
---- ---- ---- ----
Earnings attributable to
common stocks $(804) $(393) $669 $270
=== === === ===
Basic earnings (losses) per
share attributable to
common stocks
Earnings per share attributable
to $1-2/3 par value $(1.42) $(0.41) $1.65 $1.18
==== ==== ==== ====
Earnings per share attributable
to Class H $(0.01) $(0.19) $(0.28) $(0.43)
==== ==== ==== ====
Earnings (losses) per share
attributable to common
stocks assuming dilution
Earnings per share attributable
to $1-2/3 par value $(1.42) $(0.41) $1.63 $1.16
==== ==== ==== ====
Earnings per share attributable
to Class H $(0.01) $(0.19) $(0.28) $(0.43)
==== ==== ==== ====
CONSOLIDATED STATEMENTS OF INCOME - concluded
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -----------------
2002 2001 2002 2001
---- ---- ---- ----
(dollars in millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS
Total net sales and
revenues $36,657 $36,297 $118,148 $112,192
------ ------ ------- -------
Cost of sales and
other expenses 34,868 32,861 107,540 100,537
Selling, general, and
administrative expenses 3,645 4,107 11,153 11,837
------ ------ ------- -------
Total costs and expenses 38,513 36,968 118,693 112,374
------ ------ ------- -------
Interest expense 242 216 706 529
Net expense from transactions
with Financing and
Insurance Operations 72 97 208 315
----- ---- ----- ------
Income (loss) before income
taxes and minority
interests (2,170) (984) (1,459) (1,026)
Income tax expense (benefit) (835) (181) (684) (194)
Equity income/(loss) and
minority interests 88 (1) 179 (150)
----- --- --- ---
Net (loss) - Automotive,
Communications Services,
and Other Operations $(1,247) $(804) $(596) $(982)
===== === === ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $6,921 $6,178 $19,959 $19,118
----- ----- ------ ------
Interest expense 1,794 1,672 5,210 5,709
Depreciation and amortization
expense 1,395 1,477 4,109 4,429
Operating and other expenses 2,267 1,854 6,231 5,420
Provision for financing and
insurance losses 772 573 2,428 1,705
----- ----- ------ ------
Total costs and expenses 6,228 5,576 17,978 17,263
----- ----- ------ ------
Net income from transactions
with Automotive,
Communications Services,
and Other Operations (72) (97) (208) (315)
--- --- --- ---
Income before income taxes and
minority interests 765 699 2,189 2,170
Income tax expense 284 257 821 782
Equity income/(loss) and
minority interests (38) (6) (56) (60)
--- --- ----- -----
Net income - Financing and
Insurance Operations $443 $436 $1,312 $1,328
=== === ===== =====
CONSOLIDATED BALANCE SHEETS
Sept. 30, Sept. 30,
2002 Dec. 31, 2001
GENERAL MOTORS CORPORATION (Unaudited) 2001 (Unaudited)
AND SUBSIDIARIES --------- ---- ---------
(dollars in millions)
ASSETS
Automotive, Communications Services,
and Other Operations
Cash and cash equivalents $14,670 $8,432 $7,899
Marketable securities 1,360 790 829
------- ------ --------
Total cash and marketable
securities 16,030 9,222 8,728
Accounts and notes receivable
(less allowances) 5,649 5,406 6,200
Inventories (less allowances) 10,673 10,034 10,508
Equipment on operating leases
(less accumulated depreciation) 4,524 4,524 4,974
Deferred income taxes and
other current assets 9,061 7,877 8,751
------- ------- -------
Total current assets 45,937 37,063 39,161
Equity in net assets of
nonconsolidated associates 5,045 4,950 4,913
Property - net 35,071 34,908 34,555
Intangible assets - net 13,796 13,721 7,675
Deferred income taxes 22,884 22,294 15,930
Other assets 14,610 17,274 30,984
------- ------- -------
Total Automotive, Communications
Services, and Other Operations
assets 137,343 130,210 133,218
Financing and Insurance Operations
Cash and cash equivalents 7,338 10,123 10,530
Investments in securities 12,828 10,669 9,598
Finance receivables - net 107,808 99,813 90,190
Investment in leases and
other receivables 35,964 34,618 36,441
Other assets 46,395 36,979 33,624
Net receivable from Automotive,
Communications Services,
and Other Operations 529 1,557 1,243
------- ------- -------
Total Financing and Insurance
Operations assets 210,862 193,759 181,626
------- ------- -------
Total assets $348,205 $323,969 $314,844
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive, Communications Services,
and Other Operations
Accounts payable (principally trade) $19,851 $18,297 $19,335
Loans payable 1,472 2,402 1,744
Accrued expenses 36,817 34,090 35,417
Net payable to Financing and
Insurance Operations 529 1,557 1,243
------ ------ ------
Total current liabilities 58,669 56,346 57,739
Long-term debt 16,794 10,726 9,320
Postretirement benefits other
than pensions 34,138 34,515 34,276
Pensions 9,742 10,790 3,443
Other liabilities and deferred
income taxes 15,764 13,794 14,183
-------- -------- --------
Total Automotive, Communications
Services, and Other Operations
liabilities 135,107 126,171 118,961
Financing and Insurance Operations
Accounts payable 8,558 7,900 6,936
Debt 168,265 153,186 144,846
Other liabilities and deferred
income taxes 16,326 16,259 14,577
------- ------- -------
Total Financing and Insurance
Operations liabilities 193,149 177,345 166,359
------- ------- -------
Total liabilities 328,256 303,516 285,320
Minority interests 817 746 700
Stockholders' equity
$1-2/3 par value common stock (issued,
561,337,257; 559,044,427;
and 554,439,259 shares) 936 932 924
Class H common stock (issued,
958,110,735; 877,505,382; and
877,032,955 shares) 96 88 88
Capital surplus (principally additional
paid-in capital) 21,561 21,519 21,330
Retained earnings 9,291 9,463 9,565
------ ------ ------
Subtotal 31,884 32,002 31,907
Accumulated foreign currency
translation adjustments (3,009) (2,919) (2,825)
Net unrealized loss on derivatives (286) (307) (392)
Net unrealized gains on securities 141 512 179
Minimum pension liability adjustment (9,598) (9,581) (45)
------ ------ ------
Accumulated other comprehensive loss (12,752) (12,295) (3,083)
------ ------ ------
Total stockholders' equity 19,132 19,707 28,824
-------- -------- --------
Total liabilities and stockholders'
equity $348,205 $323,969 $314,844
======= ======= =======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
----------------------------------------------
2002 2001
Automotive, Financing Automotive, Financing
Comm.Serv. and Comm.Serv. and
and Other Insurance and Other Insurance
---------- --------- ---------- ---------
(dollars in millions)
Net cash provided by (used in)
operating activities $7,931 $7,706 5,509 $902
Cash flows from investing
activities
Expenditures for property (4,920) (70) (6,287) (53)
Investments in marketable
securities - acquisitions (1,391) (34,002) (840) (25,071)
Investments in marketable
securities - liquidations 821 31,889 1,172 25,205
Mortgage loans held for
investment - net - (8,812) - 501
Mortgage servicing rights
- acquisitions - 206 - (884)
Mortgage servicing rights
- liquidations - 1 - 17
Finance receivables
- acquisitions - (181,246) - (166,597)
Finance receivables
- liquidations - 87,051 - 103,919
Proceeds from sales of
finance receivables - 85,684 - 63,798
Operating leases -
acquisitions (4,215) (13,200) (4,480) (10,586)
Operating leases -
liquidations 4,017 11,105 4,783 9,239
Investments in companies,
net of cash acquired (156) (150) (679) (446)
Other 672 (170) (146) (391)
----- ------ ----- -----
Net cash used in investing
activities (5,172) (21,713) (6,477) (1,349)
----- ------ ----- -----
Cash flows from financing
activities
Net (decrease) increase in
loans payable (930) 8,437 (464) (19,885)
Long-term debt - borrowings 9,697 19,582 4,533 42,791
Long-term debt - repayments (3,731) (17,826) (2,673) (13,817)
Repurchases of common and
preference stocks (97) - (264) -
Proceeds from issuing
common stocks 64 - 91 -
Proceeds from sales of
treasury stocks 19 - 222 -
Cash dividends paid to
stockholders (887) - (900) -
----- ------ --- ------
Net cash provided by financing
activities 4,135 10,193 545 9,089
----- ------ --- ------
Effect of exchange rate
changes on cash and
cash equivalents 372 1 (69) (5)
Net transactions with
Automotive/Financing
Operations (1,028) 1,028 (728) 728
----- ----- ----- -----
Net (decrease) increase in
cash and cash equivalents 6,238 (2,785) (1,220) 9,365
Cash and cash equivalents at
beginning of the period 8,432 10,123 9,119 1,165
------ ------ ----- ------
Cash and cash equivalents at
end of the period $14,670 $7,338 $7,899 $10,530
====== ===== ===== ======
SOURCE General Motors Corp.
-0- 10/15/2002 P
/CONTACT: Mark Tanner, +1-313-665-3146, mark.tanner@gm.com , or
Jerry Dubrowski, +1-212-418-6261, jerry.dubrowski@gm.com , both of General
Motors Corp./
/Web site: http://media.gm.com /
/Web site: http://www.gm.com /
(GM)
-end-
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