Half-yearly Report
GM Reports Preliminary Second Quarter Financial Results
DETROIT, Aug. 1 --
-- Adjusted net loss of $6.3 billion, reported net loss of $15.5 billion
-- Results impacted by $9.1 billion of predominantly non-cash special
items
-- Sales records set in three of four regions
-- Q2 liquidity position of $21 billion, plus credit lines of additional
$5 billion
Second Quarter
2008 2007* '08 O/(U)'07
Revenue (bils.): $38.2 $46.7 $(8.5)
Adjusted automotive
earnings before tax (bils.): $(4.0) $1.0 $(5.0)
Reported automotive earnings
before tax (bils.): $(9.1) $0.8 $(9.9)
Adjusted net income (bils.): $(6.3) $1.3 $(7.6)
Reported net income (bils.): $(15.5) $0.8 $(16.3)
Reported earnings per
share (diluted): $(27.33) $1.37 $(28.70)
Adjusted operating cash
flow (bils): $(3.6) $1.1 $(4.7)
* 2007 figures reflect continuing operations
General Motors (NYSE: GM) today announced its financial results for the
second quarter of 2008, which include significant charges and special items.
The reported net loss was $15.5 billion or $27.33 per share for the second
quarter, including these charges and special items, compared with net income
from continuing operations of $784 million or $1.37 per share in the second
quarter of 2007. On an adjusted basis, GM posted a net loss of $6.3 billion
or $11.21 per share, compared with net income from continuing operations of
$1.3 billion or $2.29 per share in the same period last year.
GM previously announced that it anticipated a significant second quarter
loss, driven in large part by costs associated with the American Axle and
local U.S. strikes, and charges related to the successful U.S. hourly
attrition program, actions to reduce North American truck capacity, Delphi and
other matters. The operating and liquidity actions announced on July 15
contemplated weak second quarter results and a continued unfavorable U.S.
environment. The company has outlined a strong cadence of product,
powertrain, capacity and liquidity actions over the past 60 days, to realign
the business with current U.S. economic and auto market conditions, and
position the company for profitable global growth.
Some of those actions include cessation of production at four truck
plants, shift reductions at two truck plants, the addition of shifts at two
car plants, announcement of the new Chevrolet global small car program and
next generation Chevrolet Aveo compact car, introduction of a high-efficiency
4-cylinder engine for U.S. application, salaried headcount reductions and
compensation actions, deferral of certain payments to the UAW VEBA, suspension
of the dividend on common stock, reductions in sales and marketing budgets,
the strategic review of the Hummer brand and production funding approval for
the Chevrolet Volt extended range electric vehicle.
"As our recent product, capacity and liquidity actions clearly
demonstrate, we are reacting rapidly to the challenges facing the U.S. economy
and auto market, and we continue to take the aggressive steps necessary to
transform our U.S. operations," said GM Chairman and CEO Rick Wagoner. "We
have the right plan for GM, driven by great products, building strong brands,
fuel-economy technology leadership and taking full advantage of global growth
opportunities."
GM's second quarter results were primarily driven by several factors:
significant losses in GM North America (GMNA) due to continuing U.S. industry
volume declines and shifts in vehicle mix, the long strike at American Axle
and large lease-related charges; a number of special charges associated with
GM's ongoing restructuring actions; continued losses at GMAC Financial
Services (GMAC) and updated estimates regarding recoveries and expectations of
assumed benefit obligations in the Delphi bankruptcy.
GM recorded $9.1 billion of special items, predominantly non-cash in
nature for the current quarter or near-term periods, which include:
-- $3.3 billion relating to the 2008 GMNA hourly special attrition program
-- $2.8 billion adjustment to the Delphi reserve
-- $1.1 billion GMNA restructuring and capacity related costs
-- $1.3 billion impairment of GM's equity interest in GMAC
-- $340 million Canadian Auto Workers contract-related accounting charges
-- $197 million related to settlement of the strike at American Axle
Details on these and all other special items are in the financial
highlights section of this release.
In addition, the GMNA adjusted net income results reflect a $1.6 billion
charge related to lower residual values for off-lease vehicles. The total
impact of declining residual values in GM's second quarter earnings was $2.0
billion, including impairments of lease assets at both GMAC and GM.
Revenue for the second quarter was $38.2 billion, down from $46.7 billion
in the year-ago quarter, which is more than accounted for by the decline in
GMNA revenues. Combined revenues for the GM Europe (GME), GM Asia Pacific
(GMAP) and GM Latin America, Africa and Middle East (GMLAAM) regions were
$20.8 billion, up $1.7 billion over the same period 2007.
GM reports its automotive operations and regional results on an earnings-
before-tax basis, with taxes reported on a total corporate basis.
GM Automotive Operations
The second quarter adjusted automotive loss of $4.0 billion ($9.1 billion
reported) reflects the losses in GMNA driven largely by volume declines
including the impact of the American Axle and local strikes as well as
adjustments to lease vehicle residual reserves. In addition, GMAP results
were negatively impacted by adjustments relating to hedge accounting. The
losses were partially offset by exceptionally strong performance in the GMLAAM
region and continued profitability in GME. The loss compares with adjusted
automotive earnings from continuing operations of $1 billion in the second
quarter of 2007 (reported earnings of $803 million).
GM sold 2.29 million vehicles worldwide in the second quarter, down 5
percent year over year. Sales in GMNA were down 20 percent, or 236,000 units
versus the year-ago period, while sales outside of North America grew by 10
percent or 116,000 units. A record 65 percent of GM unit sales for the second
quarter were outside the United States. Global market share was 12.3 percent,
down 0.9 percent due to weakness in North America.
GMNA
Second Quarter
2008 2007 '08 O/(U)'07
Revenue (bils.) $19.8 $29.7 $(9.9)
Adjusted Earnings Before Tax $(4.4) bil. $92 mil. $(4.5) bil.
Reported Earnings Before Tax $(9.3) bil. $(88) mil. $(9.2) bil.
GM Market Share 20.2 % 22.7 % (2.5) p.p.
GMNA revenue for the second quarter was $19.8 billion, down from $29.7
billion in the year-ago period. The decline was largely attributable to a
markedly weaker U.S. auto market and lost production due to the work stoppage
at American Axle, and at several GM facilities in May and June. Although
volume overall was down 20 percent, some of GM's most recently launched cars
and crossovers continue to sell especially well, including the Chevrolet
Malibu and Cadillac CTS, up 113 percent and 33 percent, respectively, over the
year-ago period.
GMNA adjusted results reflect significantly lower volume resulting from
overall industry deterioration, continued dealer stock reductions, the
negative impact of industry segment shifts, model/option mix and an increase
to lease vehicle residual reserves related to declining residual values. The
results also reflect favorable structural and net material cost performance
and pension/OPEB/manufacturing savings.
GME
Second Quarter
2008 2007 '08 O/(U) '07
Revenue (bils.) $10.6 $9.5 $1.1
Adjusted Earnings Before Tax (mils.) $99 $345 $(246)
Reported Earnings Before Tax (mils.) $20 $315 $(295)
GM Market Share 9.4 % 9.4 % 0 p.p.
GME achieved record second-quarter sales of 590,000 units, driven by 48
percent sales growth in Russia and exceptional performance of the Chevrolet
brand, which saw a 19 percent increase in sales to 137,000 units and record
market share of 2.2 percent in the second quarter. Material and structural
cost performance improved during the quarter. However, unfavorable exchange
rates and an economic slowdown in key markets including Spain, Italy and the
U.K. had a significant impact on earnings.
GMLAAM
Second Quarter
2008 2007 '08 O/(U) '07
Revenue (bils.) $5.1 $4.3 $.8
Adjusted Earnings Before Tax (mils.) $445 $296 $149
Reported Earnings Before Tax (mils.) $445 $296 $149
GM Market Share 17.5 % 16.8 % 0.7 p.p.
Improved mix, net pricing and material cost performance along with strong
sales performance in key markets helped GMLAAM to improve its year-over-year
earnings before tax by over 50 percent, to $445 million. Volume for the region
was up nearly 18 percent over 2007, and quarterly sales records were set in
Brazil, Chile, Egypt and North Africa.
GMAP
Second Quarter
2008 2007 '08 O/(U) '07
Revenue (bils.) $5.2 $5.3 $(.1)
Adjusted Earnings Before Tax (mils.) $(65) $294 $(359)
Reported Earnings Before Tax (mils.) $(163) $280 $(443)
GM Market Share 7 % 6.7 % 0.3 p.p.
The second quarter earnings for GMAP reflect a $285 million pretax
accounting charge related to adjusting prior FAS133 hedge accounting,
partially offset by gains in India and Thailand, and improved operating
performance at Australia's Holden.
GMAC
On a standalone basis, GMAC reported a net loss of $2.5 billion for the
second quarter 2008. Affecting results were continuing large losses at
Residential Capital, LLC (ResCap) related to asset sales, valuation
adjustments and loan loss provisions, as well as a $716 million pre-tax
impairment of lease assets in the automotive finance business as a result of
lower used vehicle prices, particularly for SUVs. These items were partially
offset by profitable results in the insurance and international auto finance
businesses. GM reported an adjusted loss of $1.2 billion for the quarter
attributable to GMAC, as a result of its 49 percent equity interest.
Following a first quarter impairment against its investment in GMAC, GM
conducted further analysis in the second quarter to determine if additional
impairments were required based on current fair value estimates. Factors
considered include continued deterioration in the mortgage and consumer credit
markets and a more challenging North American automotive financing
environment. As a result, GM recorded impairment charges totaling $1.3
billion against its common and preferred equity interests in GMAC.
Cash and Liquidity
Reflecting the non-cash nature of many of the charges recorded in GM's
reported second-quarter results, cash, marketable securities, and readily-
available assets of the Voluntary Employees' Beneficiary Association (VEBA)
trust totaled $21.0 billion on June 30, 2008, down from $23.9 billion on March
31, 2008. The change in liquidity reflects negative adjusted operating cash
flow of $3.6 billion in the second quarter 2008, driven primarily by weaker
results in GMNA. As of June 30, including undrawn, committed U.S. credit
facilities of approximately $5 billion, GM has access to approximately $26
billion in liquidity. In July, GM provided notice to draw $1 billion under
its secured revolving loan facility.
As announced on July 15, GM is taking operating and related actions to
improve cash flow by approximately $10 billion through the end of 2009. In
addition, the company has outlined plans to raise approximately $5 billion
through capital markets activities and asset sales(See related news release).
GM is confident that these initiatives, along with its current cash position
and $4-5 billion of committed U.S. credit lines, will provide the company with
ample liquidity to meet its operational needs through 2009.
Results for the second quarter of 2008 are preliminary and may be revised
prior to the filing of GM's quarterly Form 10-Q in August.
Forward Looking Statements
In these and following presentations and in related comments by General
Motors management, we will use words like "expect," "anticipate," "estimate,"
"forecast," "objective," "plan," "goal," "project," "outlook," "targets," and
similar expressions to identify forward looking statements that represent our
current judgments about possible future events. We believe these judgments
are reasonable, but actual results may differ materially due to a variety of
important factors.
Among other items, such factors include: our ability to realize production
efficiencies, to reduce costs and implement capital expenditures at levels and
times planned by management; market acceptance of our products; shortages of
and price increases for fuel; declines in the residual values of used and off-
lease vehicles; significant changes in the competitive environment and the
effect of competition on our markets, including on our pricing policies; our
ability to maintain adequate liquidity and financing sources and an
appropriate level of debt; the final results of investigations and inquiries
by the SEC; court approval of the settlement agreement with the UAW and UAW
retirees related to the 2007 national agreement; negotiations and bankruptcy
court actions with respect to obligations owed to us by Delphi Corporation, a
key supplier; possible downgrades for GMAC or ResCap by rating agencies;
developments in the residential mortgage market, especially the nonprime
sector; and changes in general economic conditions such as price increases or
shortages of fuel, steel, or other raw materials.
GM's most recent annual report on Form 10-K and quarterly report on Form
10-Q and current reports on Form 8-K (which are incorporated by reference)
provide additional information about these factors, which we may revise or
supplement in future reports to the SEC on Form 10-Q or 8-K.
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release, the accompanying tables and the charts for
securities analysts include the following financial measures, which are
not prepared in accordance with Accounting Principles Generally Accepted
in the United States of America (GAAP): (1) adjusted net income; (2)
adjusted earnings before tax; (3) managerial cash flow; and (4) GM North
America vehicle revenue per unit. Each of these financial measures
excludes the effect of certain items and therefore are considered non-
GAAP financial measures. This press release and the charts for securities
analysts also contain a reconciliation of each presented non-GAAP
financial measure to its most comparable GAAP financial measure.
Management believes these non-GAAP financial measures provide
meaningful supplemental information regarding GM's operating results
because they exclude amounts that GM management does not consider part of
operating results when assessing and measuring the operational and
financial performance of the organization. In addition, GM has
historically reported similar non-GAAP financial measures and believes
that inclusion of these non-GAAP financial measures provides consistency
and comparability with past earnings releases. GM management believes
these measures allow it to readily view operating trends, perform
analytical comparisons, benchmark performance among geographic regions
and assess whether the GM North American structural cost turnaround plan
is on target. Also, GM management uses adjusted net income and adjusted
earnings before tax for forecasting purposes and in determining our
future capital investment allocations. Accordingly, GM believes these
non-GAAP financial measures are useful to investors in allowing for
greater transparency of supplemental information used by management in
its financial and operational decision-making.
While GM believes that these non-GAAP financial measures provide
useful supplemental information, there are limitations associated with
the use of these non-GAAP financial measures. These non-GAAP financial
measures are not prepared in accordance with GAAP, do not reflect a
comprehensive system of accounting and may not be comparable to similarly
titled measures of other companies due to potential differences in the
method of calculation between companies. Costs such as the special
attrition programs and restructuring charges that are excluded from GM's
non-GAAP financial measures can have a material impact on net earnings.
As a result, these non-GAAP financial measures have limitations and
should not be considered in isolation from, or as a substitute for, net
earnings, cash flow from operations, or other measures of performance or
liquidity prepared in accordance with GAAP. GM compensates for these
limitations by using these non-GAAP financial measures as supplements to
GAAP financial measures and by reviewing the reconciliations of the non-
GAAP financial measures to their most comparable GAAP financial measures.
Investors are encouraged to review the reconciliations of these non-GAAP
financial measures to their most comparable GAAP financial measures that
are included elsewhere in this press release.
Adjusted Net Income and Adjusted Earnings Before Tax
Adjusted net income excludes charges for certain tax related items,
gains and losses on the sale of business units and business interests,
charges associated with accounting changes, restructuring, plant closure
and impairment charges, charges associated with Delphi Corporation
(Delphi) and special attrition program charges.
Adjusted earnings before tax begins with adjusted net income and is
adjusted to remove any remaining tax expense or benefit.
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
The following is a discussion of each adjustment to net income or loss
determined in accordance with GAAP to arrive at adjusted net income and
adjusted earnings before tax, as applicable:
- Tax charges. Charges associated with establishing valuation allowances
on GM's deferred tax assets are excluded from adjusted net income. In
addition, other tax related items may be periodically excluded from
adjusted net income as these charges are incurred and specifically
identified in that period. Management believes the exclusion of these
tax charges from adjusted net income is useful because management does
not consider these charges part of GM's core earnings in evaluating
the performance of the business and excludes these costs when
evaluating the performance of the Corporation, its business units and
its management team and when making decisions to allocate resources
among GM's business units.
- Gains and losses on the sale of business units and business interests.
The gains and losses on the sale of business units and business
interests are excluded from adjusted net income and adjusted earnings
before tax. While GM is involved in sales of its business units and
business interests from time to time and may have significant gains or
losses from such sales in the future, such events have historically
occurred sporadically. Management excludes the gains and losses
associated with these events when it evaluates the Corporation's
operations and for internal reporting and forecasting purposes and for
allocation of additional resources.
- Changes in accounting. Our non-GAAP financial measures exclude charges
associated with changes in accounting. Management believes the
exclusion of changes in accounting from adjusted net income and
adjusted earnings before tax is useful because management does not
consider these non-recurring charges part of GM's core earnings.
Accordingly, management excludes such costs when evaluating the
performance of the Corporation, its business units and its management
teams and when making decisions to allocate resources among GM's
business units.
- Restructuring, plant closure charges and impairments. Our non-GAAP
financial measures exclude exit costs and related charges, primarily
consisting of severance costs, lease abandonment costs, product
specific asset impairments, any subsequent changes in estimates
related to exit activities and goodwill and other asset impairment
charges. Management believes the exclusion of restructuring and
impairment charges from adjusted net income and adjusted earnings
before tax is useful because management does not consider these costs
part of GM's core earnings in evaluating GM's operational managers and
the exclusion permits investors to evaluate the performance of our
management the same way management does. Additionally, management
excludes restructuring and impairment charges in determining the
allocation of resources, such as capital investments, among the
Corporation's business units and as part of its forecasting and
budgeting.
- Delphi charges. Our non-GAAP financial measures exclude the estimated
charges associated with the benefit guarantees and comprehensive
settlement agreements entered into with Delphi in connection with the
restructuring of Delphi's operations. Management does not consider
these costs as part of its core earnings for purposes of evaluating
the performance of the business, and excludes such costs when
evaluating the performance of the Corporation, its business units and
its management teams and when making decisions to allocate resources
among GM's business units.
- Special attrition program charges. Our non-GAAP financial measures
exclude the estimated charges associated with: (1) the 2008 special
attrition program agreements between GM and the International Union,
United Automobile, Aerospace and Agricultural Workers of America (UAW)
and GM and the International Union of Electronic, Electrical,
Salaried, Machine and Furniture Workers (IUE) (collectively, 2008
Special Attrition Programs); and (2) the 2006 special attrition
program agreement among GM, the UAW and Delphi (2006 Special Attrition
Program). Management believes it is useful in evaluating the
performance of GM, its management teams and its business units during
a particular time period to exclude charges associated with special
attrition programs. Accordingly, management does not consider these
costs as part of its core earnings, and excludes such costs when
evaluating the performance of the Corporation, its business units and
its management teams and when making decisions to allocate resources
among GM's business units.
General Motors Corporation
Use of Non-GAAP Financial Measures (Concluded)
Managerial Cash Flow
GM also reports non-GAAP managerial automotive operating cash flow in
its earnings releases and charts for securities analysts. Management
believes that providing managerial automotive operating cash flow
furnishes it and investors with useful information by representing the
cash flow generated or consumed by its automotive operations, including
cash consumed by automotive capital expenditures and equity investments
in companies related to our core business and cash generated by sales of
automotive operating assets and equity investments in companies related
to GM's core business, before funding non-operating-related obligations
including debt maturities, dividends and other non-operating items.
Management uses this non-GAAP financial measure to assess its automotive
cash flow when evaluating the performance of GM, its business units and
its management teams and when making decisions to allocate resources
among GM's business units.
GM North America Vehicle Revenue per Unit
GM's charts for securities analysts also include the use of a non-GAAP
measure of revenue per vehicle. Management uses revenue per vehicle to
track operating efficiency and to facilitate comparisons between periods
and between manufacturers, and believes that it provides valuable
information to investors who are interested in identifying trends and
comparing different companies. Revenue per vehicle includes certain
vehicle sales to other GM regions that are excluded from GAAP reporting,
and excludes non-vehicle sales such as service parts and operations and
OnStar service, and other income that GM does not derive from the sale of
vehicles, such as fees on the GM credit card. Also, while they are not
treated as sales under GAAP reporting because of GM's repurchase
obligations, management includes sales to daily car rental companies in
revenue per vehicle.
Change in Presentation
Prior period results have been reclassified for the retroactive effect
of discontinued operations. Certain reclassifications have been made to
the comparative 2007 financial information to conform to the current
period presentation.
General Motors Corporation
List of Special Items
2008
(Dollars in millions except per share amounts)
(Unaudited)
Second Quarter 2008 Year to Date 2008
------------------- -----------------
Earnings EPS Earnings EPS
REPORTED
Net Loss - Basic and Diluted * $(15,471) $(27.33) $(18,722) $(33.07)
ADJUSTMENTS
Pre-Tax Adjustments:
Restructuring and 2008 Special
Attrition Programs (A) $4,551 $4,875
Delphi (B) 2,753 3,484
Impairment charges related to
investment in GMAC LLC (C) 1,334 2,786
Canadian Auto Workers labor
contract (D) 340 340
American Axle (E) 197 197
Gain on sale of investment (F) (50) (50)
-------- --------
9,125 11,632
-------- --------
Tax related:
Valuation allowance on net
deferred tax assets (G) -- 394
-------- --------
Total Adjustments $9,125 $16.12 $12,026 $21.24
======== ======= ======== =======
ADJUSTED
Adjusted Loss - Basic and
Diluted * $(6,346) $(11.21) $(6,696) $(11.83)
======== ======= ======== =======
* See average shares outstanding.
General Motors Corporation
List of Special Items
2008
(Unaudited)
(A) Relates to various restructuring initiatives and the 2008 Special
Attrition Programs. Charges recorded by region are as follows:
GMNA: Second quarter charges of $3.3 billion were recorded for the
2008 Special Attrition Programs, including: (1) a $2.4 billion
curtailment loss on the U.S. hourly pension plan due to a reduction
in the expected aggregate years of future service as a result of
employees accepting the voluntary program; (2) $633 million for
special termination benefits and retirement incentive payments
paid from the overfunded U.S. hourly pension plan; and (3) $312
million for cash payments to separating employees or those taking
preretirement leave. We have recorded year to date charges of
$3.5 billion for preretirement and retirement pension and benefit
incentives and cash buyouts for employees leaving under the 2008
Special Attrition Programs.
During the second quarter, we also recorded charges of $1.1 billion
for additional wage and benefit costs related to the recently
announced capacity actions and plant idlings in the U.S. and Canada.
GME: Second quarter charges of $79 million and year to date charges
of $202 million were recognized for separation programs, primarily in
Belgium, France, Germany and Sweden.
GMAP: Second quarter and year to date charges of $98 million were
recorded for the closure of the Family II engine plant at GM Holden,
Ltd. (GM Holden), which was announced in June 2008.
(B) Second quarter charges of $2.8 billion and year to date charges of
$3.5 billion were recorded for increased liabilities under our Delphi
Benefit Guarantee Agreements, primarily due to expectations of
increased obligations and updated estimates reflecting the nature,
value and timing of our recoveries upon Delphi's emergence from
bankruptcy.
(C) Second quarter charges of $1.3 billion and year to date charges of
$2.8 billion to record impairments of our investment in Common and
Preferred Membership Interests of GMAC LLC.
(D) Relates to a change in the estimate of the amortization period
for pension prior service costs related to our hourly defined
benefit pension plan in Canada. In conjunction with our 2008
Canadian Auto Workers (CAW) labor agreement, we determined that
the three year contractual life of the labor agreement is a
better reflection of the period of future economic benefit
received from pension plan amendments for our collectively
bargained hourly pension plans. We recorded a second quarter
charge of $340 million for additional pension expense related
to the unamortized prior service costs from prior CAW labor
contracts.
(E) Relates to our agreement to provide upfront support to American
Axle to end the work stoppage that affected approximately 30 GM
plants in North America. Our support partially funds American Axle's
costs associated with UAW employee buyouts, early retirements
and buydowns.
(F) Relates to a second quarter gain of $50 million on the sale of our
common equity interest in Electro-Motive Diesel, Inc.
(G) Relates to a first quarter net charge for a valuation allowance
on GM's net deferred tax assets in Spain and the United Kingdom.
General Motors Corporation
List of Special Items
2007
(Dollars in millions except per share amounts)
(Unaudited)
Second Quarter 2008 Year to Date 2008
------------------- -----------------
Earnings EPS Earnings EPS
REPORTED
Income from continuing
operations $784 $1.38 $742 $1.31
Income from discontinued
operations 107 0.19 211 0.37
-------- ------- -------- -------
Net Income - Basic * $891 $1.57 $953 $1.68
======== ======= ======== =======
Net Income - Diluted * $1.56 $1.67
======= =======
ADJUSTMENTS
Pre-Tax Adjustments:
Delphi (A) $575 $575
Restructuring/Special
attrition program (B) 130 208
Product specific asset
impairments (C) 100 108
Plant closures (D) (6) (47)
-------- --------
799 844
-------- --------
Tax Related Adjustments:
Income tax impact of pre-tax
adjustments (279) (292)
-------- --------
Total Adjustments - Continuing
Operations $520 $0.92 $552 $0.98
======== ======= ======== =======
ADJUSTED
Income from continuing
operations $1,304 $2.30 $1,294 $2.29
Income from discontinued
operations 107 0.19 211 0.37
-------- ------- -------- -------
Adjusted Income - Basic * $1,411 $2.49 $1,505 $2.66
======== ======= ======== =======
Adjusted Income - Diluted * $2.48 $2.64
======= =======
* See average shares outstanding
General Motors Corporation
List of Special Items
2007
(Unaudited)
(A) GM, Delphi and the UAW entered into a Memorandum of Understanding
(MOU) in June 2007. During the second quarter of 2007, GM recorded
a charge of $575 million to increase our estimated liability under
our Delphi Benefit Guarantee Agreements and to establish liabilities
for certain commitments in connection with the Delphi reorganization
plan outlined in the MOU.
(B) Relates to various restructuring initiatives and the 2006 Special
Attrition Program. Charges recorded by region are as follows:
GMNA: Second quarter charges of $97 million and year to date net
adjustments of $95 million were recorded for our plant closing
reserves. Also includes first quarter curtailment gains of $14
million and second quarter and year to date favorable adjustments
of $6 million and $10 million, respectively, under the 2006 Special
Attrition Program.
GME: Second quarter charges of $30 million and year to date charges
of $87 million were recorded for separation programs, primarily in
Germany and Sweden.
GMAP: Second quarter charges of $9 million and year to date charges
of $50 million were recorded for voluntary separation programs at
one of GM Holden's Australian facilities as a result of increased
plant efficiency.
(C) Relates to second quarter charges of $100 million and year to date
charges of $108 million for product specific asset impairments.
Charges recorded by region are as follows:
GMNA: Charges of $95 million were recognized during the second
quarter for product specific asset impairments.
GMAP: Second quarter charges of $5 million and year to date charges
of $13 million for product specific asset impairments at GM Holden,
which were triggered by reductions in the production forecast.
(D) Relates to a first quarter curtailment gain of $38 million and year
to date favorable reserve adjustments of $9 million at GMNA related
to the closure of two former component plants.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions except per share amounts)
(Unaudited)
Second Quarter Year to Date
------------------- -----------------
2008 2007 2008 2007
--------- --------- --------- --------
REPORTED
Total net sales and revenue $38,156 $46,677 $80,645 $89,904
Income (loss) from continuing
operations $(15,471) $784 $(18,722) $742
Income from discontinued
operations $-- $107 $-- $211
Net income (loss) $(15,471) $891 $(18,722) $953
Net margin from continuing
operations * (40.7)% 1.7% (23.2)% 0.8%
Earnings (loss) per share -
basic
Continuing operations $(27.33) $1.38 $(33.07) $1.31
Income from discontinued
operations -- 0.19 -- 0.37
-------- -------- -------- -------
Net income (loss) $(27.33) $1.57 $(33.07) $1.68
======== ======== ======== =======
Earnings (loss) per share -
diluted
Continuing operations $(27.33) $1.37 $(33.07) $1.30
Income from discontinued
operations -- 0.19 -- 0.37
-------- -------- -------- -------
Net income (loss) $(27.33) $1.56 $(33.07) $1.67
======== ======== ======== =======
ADJUSTED
Total net sales and revenue $38,156 $46,677 $80,645 $89,904
Income (loss) from continuing
operations $(6,346) $1,304 $(6,696) $1,294
Income from discontinued
operations $-- $107 $-- $211
Net income (loss) $(6,346) $1,411 $(6,696) $1,505
Net margin from continuing
operations * (16.7)% 2.8% (8.3)% 1.4%
Earnings (loss) per share -
basic
Income (loss) from continuing
operations $(11.21) $2.30 $(11.83) $2.29
Income from discontinued
operations -- 0.19 -- 0.37
-------- -------- -------- -------
Net income (loss) $(11.21) $2.49 $(11.83) $2.66
======== ======== ======== =======
Earnings (loss) per share -
diluted
Income (loss) from continuing
operations $(11.21) $2.29 $(11.83) $2.27
Income from discontinued
operations -- 0.19 -- 0.37
-------- -------- -------- -------
Net income (loss) $(11.21) $2.48 $(11.83) $2.64
======== ======== ======== =======
See reconciliation of adjusted financial results.
* Calculated as Income (loss) from continuing operations / Total
net sales and revenue.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
Second Quarter Year to Date
------------------- -----------------
2008 2007 2008 2007
--------- --------- --------- --------
GM common stock average shares
outstanding: (Millions)
---------------------------------------
Reported (GAAP):
Basic shares 566 566 566 566
Diluted shares 566 569 566 569
Adjusted (Non-GAAP):
Basic shares 566 566 566 566
Diluted shares 566 569 566 569
Cash dividends per share of
common stock $0.25 $0.25 $0.50 $0.50
Automotive cash & marketable securities and
readily-available assets in VEBA at June 30: (Billions)
------------------
Automotive cash & marketable
securities $20.5 $23.6
Readily-available assets in
VEBA 0.5 3.6
--------- -------
Total automotive cash & marketable securities and
readily-available assets in VEBA $21.0 $27.2
========= =======
Automotive Operations: (Millions)
---------------------------------------
Depreciation and impairment $1,179 $1,219 $2,405 $2,464
Amortization and impairment of
special tools 827 850 1,599 1,570
Amortization of intangible
assets 20 18 40 35
-------- -------- -------- -------
Total $2,026 $2,087 $4,044 $4,069
======== ======== ======== =======
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Second Quarter
2008 and 2007
Reported Special Items Adjusted
---------------- --------------- --------------
2008 2007 2008 2007 2008 2007
-------- ------- ------- ------- -------- ------
Net sales and
revenue:
GMNA $19,820 $29,663 $-- $-- $19,820 $29,663
GME 10,579 9,512 -- -- 10,579 9,512
GMLAAM 5,109 4,333 -- -- 5,109 4,333
GMAP 5,158 5,287 -- -- 5,158 5,287
Auto Elimination
(a) (2,993) (3,012) -- -- (2,993) (3,012)
------- ------- ------ ------ ------- -------
Total GMA 37,673 45,783 -- -- 37,673 45,783
Corporate & Other -- -- -- -- -- --
------- ------- ------ ------ ------- -------
Total Auto & Other 37,673 45,783 -- -- 37,673 45,783
------- ------- ------ ------ ------- -------
GMAC -- -- -- -- -- --
Other Financing 483 894 -- -- 483 894
------- ------- ------ ------ ------- -------
Total Financing 483 894 -- -- 483 894
------- ------- ------ ------ ------- -------
Total $38,156 $46,677 $-- $-- $38,156 $46,677
======= ======= ====== ====== ======= =======
Income (loss) from continuing
operations before income taxes,
other equity income and minority
interests:
GMNA $(9,334) $(98) $4,911 $180 $(4,423) $82
GME 12 312 79 30 91 342
GMLAAM 442 295 -- -- 442 295
GMAP (359) 282 98 14 (261) 296
Auto Elimination
(a) (14) (1) -- -- (14) (1)
------- ------- ------ ------ ------- -------
Total GMA (9,253) 790 5,088 224 (4,165) 1,014
Corporate & Other
(a) (3,499) (579) 2,703 575 (796) (4)
------- ------- ------ ------ ------- -------
Total Auto & Other (12,752) 211 7,791 799 (4,961) 1,010
------- ------- ------ ------ ------- -------
GMAC (2,551) 154 1,334 -- (1,217) 154
Other Financing
(a) (55) 86 -- -- (55) 86
------- ------- ------ ------ ------- -------
Total Financing (2,606) 240 1,334 -- (1,272) 240
------- ------- ------ ------ ------- -------
Total $(15,358) $451 $9,125 $799 $(6,233) $1,250
======= ======= ====== ====== ======= =======
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Second Quarter
2008 and 2007
Reported Special Items Adjusted
---------------- --------------- --------------
2008 2007 2008 2007 2008 2007
-------- ------- ------- ------- -------- ------
Equity income (loss),
net of tax:
GMNA $(6) $27 $-- $-- $(6) $27
GME 21 12 -- -- 21 12
GMLAAM 9 8 -- -- 9 8
GMAP 104 122 -- -- 104 122
Auto Elimination -- 1 -- -- -- 1
------- ------- ------ ------ ------- -------
Total GMA 128 170 -- -- 128 170
Corporate & Other -- -- -- -- -- --
------- ------- ------ ------ ------- -------
Total Auto & Other 128 170 -- -- 128 170
------- ------- ------ ------ ------- -------
GMAC -- -- -- -- -- --
Other Financing -- -- -- -- -- --
------- ------- ------ ------ ------- -------
Total Financing -- -- -- -- -- --
------- ------- ------ ------ ------- -------
Total $128 $170 $-- $-- $128 $170
======= ======= ====== ====== ======= =======
Minority interests, net of tax:
GMNA $(6) $(17) $-- $-- $(6) $(17)
GME (13) (9) -- -- (13) (9)
GMLAAM (6) (7) -- -- (6) (7)
GMAP 92 (124) -- -- 92 (124)
Auto Elimination -- -- -- -- -- --
------- ------- ------ ------ ------- -------
Total GMA 67 (157) -- -- 67 (157)
Corporate & Other (1) -- -- -- (1) --
------- ------- ------ ------ ------- -------
Total Auto & Other 66 (157) -- -- 66 (157)
------- ------- ------ ------ ------- -------
GMAC -- -- -- -- -- --
Other Financing 1 -- -- -- 1 --
------- ------- ------ ------ ------- -------
Total Financing 1 -- -- -- 1 --
------- ------- ------ ------ ------- -------
Total $67 $(157) $-- $-- $67 $(157)
======= ======= ====== ====== ======= =======
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Second Quarter
2008 and 2007
Reported Special Items Adjusted
---------------- --------------- --------------
2008 2007 2008 2007 2008 2007
-------- ------- ------- ------- -------- ------
Pre-tax earnings
(loss): *
GMNA $(9,346) $(88) $4,911 $180 $(4,435) $92
GME 20 315 79 30 99 345
GMLAAM 445 296 -- -- 445 296
GMAP (163) 280 98 14 (65) 294
Auto Elimination
(a) (14) -- -- -- (14) --
------- ------- ------- ------ ------- -------
Total GMA (9,058) 803 5,088 224 (3,970) 1,027
Corporate & Other
(a) (3,500) (579) 2,703 575 (797) (4)
------- ------- ------- ------ ------- -------
Total Auto & Other (12,558) 224 7,791 799 (4,767) 1,023
------- ------- ------- -------- ------- -------
GMAC (2,551) 154 1,334 -- (1,217) 154
Other Financing
(a) (54) 86 -- -- (54) 86
------- ------- ------- ------ ------- -------
Total Financing (2,605) 240 1,334 -- (1,271) 240
------- ------- ------- ------ ------- -------
Total $(15,163) $464 $9,125 $799 $(6,038) $1,263
======= ======= ======= ====== ======= =======
Income tax expense
(benefit):
Corporate & Other $1,045 $(364) $-- $279 $1,045 $(85)
Other Financing
(a) (737) 44 -- -- (737) 44
------- ------- ------- ------ ------- -------
Total $308 $(320) $-- $279 $308 $(41)
======= ======= ======= ====== ======= =======
See footnotes.
* Defined here as Income (loss) from continuing operations before
income taxes and after equity income and minority interests.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
---------------- --------------- --------------
2008 2007 2008 2007 2008 2007
-------- ------- ------- ------- -------- ------
Net sales and
revenue:
GMNA $44,363 $57,720 $-- $-- $44,363 $57,720
GME 20,488 17,983 -- -- 20,488 17,983
GMLAAM 9,872 7,910 -- -- 9,872 7,910
GMAP 10,454 9,695 -- -- 10,454 9,695
Auto Elimination
(a) (5,560) (5,234) -- -- (5,560) (5,234)
------- ------- ------- ------ ------- -------
Total GMA 79,617 88,074 -- -- 79,617 88,074
Corporate & Other -- -- -- -- -- --
------- ------- ------- ------ ------- -------
Total Auto & Other 79,617 88,074 -- -- 79,617 88,074
------- ------- ------- ------ ------- -------
GMAC -- -- -- -- -- --
Other Financing 1,028 1,830 -- -- 1,028 1,830
------- ------- ------- ------ ------- -------
Total Financing 1,028 1,830 -- -- 1,028 1,830
------- ------- ------- ------ ------- -------
Total $80,645 $89,904 $-- $-- $80,645 $89,904
======= ======= ======= ====== ======= =======
Income (loss) from continuing
operations before income taxes,
other equity income and minority
interests:
GMNA $(10,129) $(309) $5,112 $119 $(5,017) $(190)
GME 81 314 202 87 283 401
GMLAAM 960 550 -- -- 960 550
GMAP (157) 376 98 63 (59) 439
Auto Elimination
(a) (12) (8) -- -- (12) (8)
------- ------- ------- ------ ------- -------
Total GMA (9,257) 923 5,412 269 (3,845) 1,192
Corporate & Other
(a) (4,528) (789) 3,434 575 (1,094) (214)
------- ------- ------- ------ ------- -------
Total Auto & Other (13,785) 134 8,846 844 (4,939) 978
------- ------- ------- ------ ------- -------
GMAC (4,279) 20 2,786 -- (1,493) 20
Other Financing
(a) 49 140 -- -- 49 140
------- ------- ------- ------ ------- -------
Total Financing (4,230) 160 2,786 -- (1,444) 160
------- ------- ------- ------ ------- -------
Total $(18,015) $294 $11,632 $844 $(6,383) $1,138
======= ======= ======= ====== ======= =======
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
---------------- --------------- --------------
2008 2007 2008 2007 2008 2007
-------- ------- ------- ------- -------- ------
Equity income (loss), net of tax:
GMNA $(26) $40 $-- $-- $(26) $40
GME 34 20 -- -- 34 20
GMLAAM 14 14 -- -- 14 14
GMAP 238 249 -- -- 238 249
Auto Elimination -- 1 -- -- -- 1
------- ------- ------- ------ ------- -------
Total GMA 260 324 -- -- 260 324
Corporate & Other -- 2 -- -- -- 2
------- ------- ------- ------ ------- -------
Total Auto & Other 260 326 -- -- 260 326
------- ------- ------- ------ ------- -------
GMAC -- -- -- -- -- --
Other Financing -- -- -- -- -- --
------- ------- ------- ------ ------- -------
Total Financing -- -- -- -- -- --
------- ------- ------- ------ ------- -------
Total $260 $326 $-- $-- $260 $326
======= ======= ======= ====== ======= =======
Minority interests, net of tax:
GMNA $(3) $(27) $-- $-- $(3) $(27)
GME (20) (15) -- -- (20) (15)
GMLAAM (12) (14) -- -- (12) (14)
GMAP 42 (202) -- -- 42 (202)
Auto Elimination -- -- -- -- -- --
------- ------- ------- ------ ------- -------
Total GMA 7 (258) -- -- 7 (258)
Corporate & Other (1) (1) -- -- (1) (1)
------- ------- ------- ------ ------- -------
Total Auto & Other 6 (259) -- -- 6 (259)
------- ------- ------- ------ ------- -------
GMAC -- -- -- -- -- --
Other Financing (12) -- -- -- (12) --
------- ------- ------- ------ ------- -------
Total Financing (12) -- -- -- (12) --
------- ------- ------- ------ ------- -------
Total $(6) $(259) $-- $-- $(6) $(259)
======= ======= ======= ====== ======= =======
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
---------------- --------------- --------------
2008 2007 2008 2007 2008 2007
-------- ------- ------- ------- -------- ------
Pre-tax earnings
(loss): *
GMNA $(10,158) $(296) $5,112 $119 $(5,046) $(177)
GME 95 319 202 87 297 406
GMLAAM 962 550 -- -- 962 550
GMAP 123 423 98 63 221 486
Auto Elimination
(a) (12) (7) -- -- (12) (7)
------- ------- ------- ------ ------- -------
Total GMA (8,990) 989 5,412 269 (3,578) 1,258
Corporate & Other
(a) (4,529) (788) 3,434 575 (1,095) (213)
------- ------- ------- ------ ------- -------
Total Auto & Other (13,519) 201 8,846 844 (4,673) 1,045
------- ------- ------- ------ ------- -------
GMAC (4,279) 20 2,786 -- (1,493) 20
Other Financing
(a) 37 140 -- -- 37 140
------- ------- ------- ------ ------- -------
Total Financing (4,242) 160 2,786 -- (1,456) 160
------- ------- ------- ------ ------- -------
Total $(17,761) $361 $11,632 $844 $(6,129) $1,205
======= ======= ======= ====== ======= =======
Income tax expense
(benefit):
Corporate & Other $1,690 $(431) $(394) $292 $1,296 $(139)
Other Financing
(a) (729) 50 -- -- (729) 50
------- ------- ------- ------ ------- -------
Total $961 $(381) $(394) $292 $567 $(89)
======= ======= ======= ====== ======= =======
See footnotes.
* Defined here as Income (loss) from continuing operations before
income taxes and after equity income and minority interests.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in billions)
(Unaudited)
Second Quarter Year to Date
------------------- -----------------
2008 2007 2008 2007
--------- --------- --------- --------
Automotive & Other Adjusted
Operating Cash Flow:
Total Auto & Other pre-tax
earnings (loss)* $(12.6) $0.2 $(13.5) $0.2
Depreciation and amortization 2.0 2.1 4.0 4.1
Capital expenditures (2.2) (1.7) (4.1) (2.9)
Change in receivables,
payables and inventory 0.6 0.2 (1.5) 0.2
Pension/OPEB expense (net of
payments) 2.7 (0.5) 2.0 (1.0)
VEBA -- (1.0) -- (1.0)
Accrued expenses and other 5.9 1.8 5.9 1.8
------ ------ ------ ------
Total Auto & Other Adjusted
Operating Cash Flow $(3.6) $1.1 $(7.2) $1.4
====== ====== ====== ======
* Defined here as Income (loss) from continuing operations before
income taxes and after equity income and minority interests.
General Motors Corporation
Operating Statistics
(Unaudited)
Second Quarter Year to Date
------------------- -----------------
2008 2007 2008 2007
--------- --------- --------- --------
Worldwide Production Volume: (Units in thousands)
--------------------
GMNA - Cars 382 402 742 801
GMNA - Trucks 452 740 977 1,404
------ ------ ------ ------
Total GMNA 834 1,142 1,719 2,205
GME 495 464 988 975
GMLAAM 276 233 519 455
GMAP * 619 571 1,231 1,115
------ ------ ------ ------
Total Worldwide ** 2,224 2,410 4,457 4,750
====== ====== ====== ======
Vehicle Unit Deliveries:
Chevrolet - Cars 206 218 388 405
Chevrolet - Trucks 278 376 577 737
Pontiac 80 96 153 175
GMC 93 131 197 241
Buick 33 47 71 90
Saturn 54 69 102 126
Cadillac 42 51 89 98
Other 13 26 28 51
------ ------ ------ ------
Total United States 799 1,014 1,605 1,923
Canada, Mexico and Other 165 186 306 333
------ ------ ------ ------
Total GMNA 964 1,200 1,911 2,256
GME 590 575 1,161 1,129
GMLAAM 346 294 670 564
GMAP * 387 338 798 726
------ ------ ------ ------
Total Worldwide ** 2,287 2,407 4,540 4,675
====== ====== ====== ======
Market Share:
United States - Cars 17.1% 19.4% 18.0% 19.4%
United States - Trucks 24.3% 26.0% 24.6% 25.7%
Total United States 20.4% 22.8% 21.3% 22.8%
Total GMNA 20.2% 22.7% 20.9% 22.6%
Total GME 9.4% 9.4% 9.5% 9.5%
Total GMLAAM 17.5% 16.8% 17.5% 16.6%
Total GMAP * 7.0% 6.7% 7.0% 6.9%
Total Worldwide 12.3% 13.2% 12.4% 13.1%
U.S. Retail/Fleet Mix:
% Fleet Sales - Cars 23.9% 33.2% 28.5% 34.8%
% Fleet Sales - Trucks 23.0% 22.3% 22.4% 20.4%
Total Vehicles 23.4% 26.7% 25.0% 26.1%
GMNA Capacity Utilization *** 71.0% 94.9% 73.6% 91.5%
* GMAP production and sales volume includes SAIC-GM Wuling
Automobile Co. Ltd. (SGMW) joint venture vehicles. We own 34%
of SGMW and under the joint venture agreement have significant
rights as a member as well as the contractual right to report
SGMW sales in China as part of our global market share.
** Total Worldwide may include rounding differences.
*** Two shift rated, annualized.
General Motors Corporation
Operating Statistics
(Unaudited)
Second Quarter Year to Date
2008 2007 2008 2007
--------- --------- --------- -------
GMAC's share of GM retail sales
Total consumer volume (retail
and lease) as % of retail
(North America only) 43% 45% 46% 45%
SmartLease/SmartBuy as % of
retail (U.S. only) 14% 16% 17% 16%
Worldwide Employment at June 30: (Thousands)
----------------
United States - Hourly (b) 72 83
United States - Salaried (b) 32 33
------ ------
Total United States 104 116
Canada, Mexico and Other 29 30
------ ------
GMNA 133 146
GME 57 59
GMLAAM 36 33
GMAP 35 33
Other 2 3
------ ------
Total GM 263 274
====== ======
(Billions)
------------------------------------
Worldwide Payroll $4.2 $4.4 $8.5 $9.0
Footnotes:
(a) Auto Eliminations, Corporate & Other and Other Financing include
inter-company eliminations.
(b) Includes approximately 2,000 hourly and 1,100 salary employees of
Allison Transmission at June 30, 2007.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2008 2007 2008 2007
--------- -------- --------- ---------
Net sales and revenue
Automotive sales $37,673 $45,783 $79,617 $88,074
Financial services and insurance
revenue 483 894 1,028 1,830
-------- -------- -------- --------
Total net sales and revenue 38,156 46,677 80,645 89,904
-------- -------- -------- --------
Costs and expenses
Automotive cost of sales 43,546 41,666 81,698 80,395
Selling, general and
administrative expense 3,754 3,293 7,453 6,604
Financial services and insurance
expense 579 811 1,075 1,694
Other expenses 2,753 575 3,484 575
-------- -------- -------- --------
Total costs and expenses 50,632 46,345 93,710 89,268
-------- -------- -------- --------
Operating income (loss) (12,476) 332 (13,065) 636
Equity in income (loss) of GMAC LLC (1,930) 118 (3,542) (65)
Automotive and other interest
expense (721) (681) (1,495) (1,480)
Automotive interest income and
other non-operating income (loss),
net (231) 682 87 1,203
-------- -------- -------- --------
Income (loss) from continuing
operations before income taxes,
equity income and minority
interests (15,358) 451 (18,015) 294
Income tax expense (benefit) 308 (320) 961 (381)
Equity income, net of tax 128 170 260 326
Minority interests, net of tax 67 (157) (6) (259)
-------- -------- -------- --------
Income (loss) from continuing
operations (15,471) 784 (18,722) 742
Income from discontinued
operations, net of tax -- 107 -- 211
-------- -------- -------- --------
Net income (loss) $(15,471) $891 $(18,722) $953
======== ======== ======== ========
Basic earnings (loss) per share:
Continuing operations $(27.33) $1.38 $(33.07) $1.31
Discontinued operations -- 0.19 -- 0.37
-------- -------- -------- --------
Total $(27.33) $1.57 $(33.07) $1.68
======== ======== ======== ========
Weighted average common shares
outstanding, basic (millions) 566 566 566 566
======== ======== ======== ========
Diluted earnings (loss) per share:
Continuing operations $(27.33) $1.37 $(33.07) $1.30
Discontinued operations -- 0.19 -- 0.37
-------- -------- -------- --------
Total $(27.33) $1.56 $(33.07) $1.67
======== ======== ======== ========
Weighted average common shares
outstanding, diluted (millions) 566 569 566 569
======== ======== ======== ========
Cash dividends per share $0.25 $0.25 $0.50 $0.50
======== ======== ======== ========
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
June 30, December 31, June 30,
2008 2007 2007
--------- ----------- --------
ASSETS
Current Assets
Cash and cash equivalents $ 19,356 $ 24,549 $ 22,040
Marketable securities 1,150 2,139 1,573
-------- -------- --------
Total cash and marketable securities 20,506 26,688 23,613
Accounts and notes receivable, net 8,946 9,659 10,233
Inventories 17,744 14,939 15,073
Assets held for sale -- -- 683
Equipment on operating leases, net 4,669 5,283 5,889
Other current assets and deferred income
taxes 3,576 3,566 12,471
-------- -------- --------
Total current assets 55,441 60,135 67,962
Financing and Insurance Operations Assets
Cash and cash equivalents 198 268 258
Investments in securities 214 215 192
Equipment on operating leases, net 3,804 6,712 9,145
Equity in net assets of GMAC LLC 3,454 7,079 7,555
Other assets 2,807 2,715 2,819
-------- -------- --------
Total Financing and Insurance Operations
assets 10,477 16,989 19,969
Non-Current Assets
Equity in net assets of nonconsolidated
affiliates 2,367 1,919 2,000
Property, net 44,038 43,017 41,404
Goodwill and intangible assets, net 1,070 1,066 973
Deferred income taxes 1,014 2,116 32,449
Prepaid pension 17,991 20,175 18,305
Other assets 3,648 3,466 3,577
-------- -------- --------
Total non-current assets 70,128 71,759 98,708
-------- -------- --------
Total Assets $136,046 $148,883 $186,639
======== ======== ========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable (principally trade) $ 30,097 $ 29,439 $ 30,742
Short-term borrowings and current portion
of long-term debt 8,008 6,047 5,150
Liabilities related to assets held for sale -- -- 526
Accrued expenses 37,373 34,822 34,621
-------- -------- --------
Total current liabilities 75,478 70,308 71,039
Financing and Insurance Operations
Liabilities
Debt 2,753 4,908 7,133
Other liabilities and deferred income taxes 884 905 855
-------- -------- --------
Total Financing and Insurance Operations
liabilities 3,637 5,813 7,988
Non-Current Liabilities
Long-term debt 32,450 33,384 34,134
Postretirement benefits other than pensions 47,476 47,375 48,353
Pensions 11,774 11,381 11,654
Other liabilities and deferred income taxes 20,825 16,102 15,972
-------- -------- --------
Total non-current liabilities 112,525 108,242 110,113
-------- -------- --------
Total liabilities 191,640 184,363 189,140
Commitments and contingencies
Minority interests 1,376 1,614 1,268
Stockholders' Deficit
Preferred stock, no par value, 6,000,000
shares authorized, no shares issued and
outstanding -- -- --
Common stock, $1 2/3 par value
(2,000,000,000 shares authorized,
756,637,541 and 566,162,598 shares
issued and outstanding as of June 30,
2008, respectively, 756,637,541 and
566,059,249 shares issued and
outstanding as of December 31, 2007,
respectively, and 756,637,541 and
565,864,695 shares issued and
outstanding as of June 30, 2007,
respectively) 944 943 943
Capital surplus (principally additional
paid-in capital) 15,335 15,319 15,255
Accumulated deficit (58,470) (39,392) 577
Accumulated other comprehensive loss (14,779) (13,964) (20,544)
-------- -------- --------
Total stockholders' deficit (56,970) (37,094) (3,769)
-------- -------- --------
Total Liabilities, Minority Interests and
Stockholders' Deficit $136,046 $148,883 $186,639
======== ======== ========
SOURCE General Motors Corporation
-0- 08/01/2008
/NOTE TO EDITORS: For additional media information visit
http://media.gm.com ./
/CONTACT: Renee Rashid-Merem, +1-313-665-3128, renee.rashid-merem@gm.com,
or Randy Arickx, +1-313-667-0006, randy.c.arickx@gm.com, both of General
Motors Corporation/
/Web site: http://www.gm.com
http://media.gm.com /
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