Final Results
General Motors Corp
16 January 2002
Contact: Mark A. Tanner
(313)665-3146
Jerry Dubrowski
(212)418-6261
GM EARNS $1.5 BILLION, OR $3.23 PER SHARE IN CALENDAR-YEAR 2001
FOURTH QUARTER EARNINGS TOTAL $255 MILLION, OR $0.60 PER SHARE
--MARKET MOMENTUM, COST REDUCTIONS, STRONG
CASH GENERATION ARE KEY DRIVERS
--GMAC HAS SEVENTH-STRAIGHT YEAR OF EARNINGS GROWTH
DETROIT - Market-share gains spurred by strong new product entries coupled with
an intense focus on reducing costs partially offset relentless price pressures
as General Motors Corp. (NYSE: GM, GMH) earned $1.5 billion, or $3.23 diluted
earnings per share, in calendar-year 2001 on revenues of $177.3 billion,
excluding special items. That compares with earnings of $5.0 billion, or $8.58
per share, and revenues of $183.3 billion in the prior year, excluding special
items. Including special items, GM had net income of $601 million, or $1.77 per
share, in 2001; this compares with $4.5 billion, or $6.68 per share, in the
prior year.
GM earned $255 million, or $0.60 per share, in the fourth quarter of 2001,
including the approximately $97 million, or $0.14 per share, unfavorable effect
of the currency devaluation in Argentina. This compares with $609 million, or
$1.15 per share, in the fourth quarter of 2000, excluding special items. There
were no special items in the fourth quarter of 2001. GM financial results
described throughout the remainder of this release exclude special items unless
otherwise noted (see Highlights).
'Our performance in 2001 was quite strong considering all of the challenges we
faced, and we intend to continue building momentum throughout the coming year,'
said GM Chairman Jack Smith. 'Our market-share gains demonstrate that GM's
dedication to developing innovative new products is paying off in the
marketplace. Our focus in the coming year is to build on our market success and
make further improvements in our financial performance.'
-2-
'We're in good shape to meet the tough competitive challenges in the year
ahead,' said GM President and Chief Executive Officer Rick Wagoner. 'We gained
momentum in the fourth quarter with our great products and the highly successful
Keep America Rolling marketing campaign, ending the year with low U.S. dealer
inventories. As we continue to introduce more new models this year, and
intensify our focus on efficiencies and cost reductions, we're well-positioned
when the economy rebounds.'
Cash, marketable securities, and assets of the Voluntary Employees' Beneficiary
Association (VEBA) trust invested in short-term fixed-income securities,
excluding Hughes, totaled $11.5 billion at Dec. 31, 2001, compared with $11.0
billion at Sept. 30, 2001.
GM AUTOMOTIVE OPERATIONS
GM's global automotive operations earned $708 million in calendar-year 2001,
compared with $3.9 billion in 2000. Fourth-quarter earnings totaled $66 million
versus $393 million in the prior-year period. Wholesale volume declined
approximately 8 percent in calendar-year 2001, and approximately 6 percent in
the fourth quarter, compared with the same periods of 2000.
Lower sales volume and strong pricing competition affected results in North
America, where GM's annual wholesale vehicle sales declined 11 percent from
prior-year levels. Similar pricing pressures affected Europe, along with the
shift in consumer preference toward smaller, less-profitable vehicles and
unfavorable country mix. Net price retention in calendar-year 2001 was negative
1.3 percent in both North America and Europe.
Results in the Asia-Pacific region were driven by strong profitability and
market leadership by Australia-based Holden. In the Latin America/Africa/Mid-
East region, market share was the highest for a fourth quarter in 12 years and
sales volume increased. However, pricing pressure from the supplier community,
based partially on the decline in value of the Brazilian currency, and
unfavorable product mix offset these gains.
-3-
GM increased its calendar-year market share in the United States for the first
time since 1990, as its strong truck lineup broke the industry record for truck
sales. Sales of full-size pickups were the best since 1978, and GM shattered the
all-time industry sport utility vehicle (SUV) sales record, becoming the first
manufacturer to sell more than one million SUVs in a calendar year. GM's share
of the U.S. truck market increased 2.2 percentage points to 29.2 percent for
2001, while total vehicle share increased 0.3 percentage points, totaling 28.1
percent for the year. Particularly significant was the improved mix of retail
sales as GM continued to focus its sales efforts on the more profitable retail
side of the business. Retail sales increased 2.8 percentage points to 81.6
percent of all GM U.S. sales.
GM also gained market share in the GM North America (GMNA), Latin America/
Africa/Mid-East (GMLAAM), and Asia-Pacific (GMAP) regions, while holding share
steady in GM Europe (GME). GM's global market share totaled 15.1 percent in
2001, compared with 15.0 percent in 2000. Combined sales of GM and its
automotive alliance partners - Fiat Auto, Fuji Heavy Industries (Subaru), Isuzu
Motor Corp., and Suzuki Motor Corp. - represented 23.7 percent of the global
automotive market in 2001, compared with 23.3 percent in the prior year.
'To translate our market success into higher profits, our global automotive
operations continue to focus on improving quality and increasing productivity,
and our entire company is concentrating on reducing costs,' Wagoner said. 'We've
targeted significant reductions in material and structural costs for 2002, in
addition to reducing non-product-related capital expenditures.'
In the 2001 Harbour Report, GM's manufacturing operations outpaced all other
multi-plant manufacturers in North America with an overall productivity
improvement of nearly 8.5 percent. In addition, GM scored the biggest
improvement of any automaker in the 2001 J.D. Power & Associates initial quality
survey. GM not only achieved the highest quality gains, but also led all U.S.
automakers and is closing the gap with the best Japanese manufacturers.
-4-
General Motors is receiving very positive reaction from the three new production
vehicles and five concept cars that were unveiled to automotive journalists from
around the world last week at the 2002 North American International Auto Show in
Detroit. 'The excitement that these vehicles generated amplifies the overall
enthusiasm our products are generating in the market,' Wagoner said. 'We intend
to build on this momentum by introducing nearly 40 new products between now and
2003, including six in the crucial entry-level market. This is continuing
evidence that GM's aggressive product program, focused on great designs,
excellent handling and innovation, is paying off.'
GM vehicles have received more than 70 awards since the beginning of 2001,
including the following highly influential citations:
- Motor Trend 'SUV of the Year' - GMC Envoy
- Motor Trend 'Truck of the Year' - Chevrolet Avalanche
- 'North American Truck of the Year' - Chevrolet TrailBlazer
- Autoweek North American International Auto Show Awards - Cadillac Cien and
Pontiac Solstice concept cars
- 'International Van of the Year' - First Place: Opel Vivaro;
Second Place: Opel Combo
- Brazilian Automotive Press Association 'Popular Car of the Year' - Chevrolet
Celta; 'SUV of the Year' - Chevrolet Tracker (Vitara)
GMAC
For 2001, GMAC achieved income growth for the seventh consecutive year and
posted record earnings for the third-straight year. GMAC's 2001 earnings of $1.8
billion were 9.4 percent higher than during the prior year.
GMAC's fourth-quarter earnings in 2001 of $435 million were up $26 million, or
more than 6 percent, from a year ago. Earnings from Financing Operations
increased as higher asset levels and the positive impact from lower market
interest rates more than offset weaker residual values and higher credit losses.
For the quarter, Insurance Operations posted higher earnings as increases in
underwriting income more than offset lower capital gains. Mortgage Operations
were down slightly year-over-year but still achieved the second highest
quarterly profit as strong new origination volumes kept pace with the high
refinancing activity.
-5-
HUGHES
Calendar-year losses at Hughes totaled $525 million for 2001, compared with $303
million in the prior year. Hughes lost $131 million in the fourth quarter of
2001, compared with a loss of $74 million in the prior-year period, primarily
because of the cost of adding DIRECTV subscribers.
Hughes revenues were up 4 percent in the fourth quarter of 2001. Total DIRECTV
subscriptions increased to 12.3 million, with approximately 518,000 more
subscribers than in the third quarter of 2001, an increase of 4.4 percent. Total
subscriptions were up 1.5 million from year-end-2000 levels.
PROFIT SHARING, INCENTIVE COMPENSATION
Based on GM's financial results in 2001, there will be no profit-sharing
payments to hourly workers in the United States. In addition, there will be no
annual incentive awards for GM executives, or enhanced variable pay for eligible
U.S. and Canadian salaried employees.
LOOKING AHEAD
GM has forecast total U.S. industry vehicle sales to be in the range of 15.0
million to 15.5 million units, and industry sales in Europe of approximately
18.5 million units. Sales in the Latin America/Africa/Mid-East and Asia-Pacific
regions are expected to be relatively flat compared with 2001. U.S. dealer
inventories are lean at less than 1 million units, and first-quarter North
American production is expected to increase 7 percent over the first quarter of
2001. Net price retention in the first quarter is expected to be consistent with
the prior guidance for the calendar year at approximately negative 1 percent.
Based on these factors and considering the high-degree of economic uncertainty,
GM's earnings target for the 2002 calendar year, excluding Hughes, remains at
$3.00 per share, and first-quarter earnings are now expected to be approximately
$1.00 per share. Including Hughes, the targets are approximately $2.60 per share
for the calendar year, and $0.90 per share for the first quarter.
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' 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-10,11) which may be revised or supplemented in
subsequent reports on SEC Forms 10-Q and 8-K. Such factors include, among
others, the following: changes in economic conditions, currency exchange rates
or political stability; shortages of fuel, labor strikes or work stoppages;
market acceptance of the corporation's new products; significant changes in the
competitive environment; changes in laws, regulations and tax rates; and the
ability of the corporation to achieve reductions in cost and employment levels
to realize production efficiencies and implement capital expenditures at levels
and times planned by management.
-6-
General Motors Corporation
List of Special Items - After Tax
(dollars in millions)
Year to Date 2001
GMNA GME GMLAAM GMAP Hughes Other
ACO
Reported Net Income (Loss) $1,270 $(765) $(81) $(57) $(618) $(916)
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 (H) 14 (2) 1 1 8 --
Adjusted Net Income (Loss) $1,478 $(767) $(80) $77 $(525) $(442)
TOTAL GMAC Other Total Diluted
ACO FIO GM EPS
Reported Net Income (Loss) $(1,167) $1,786 $(18) $ 601 $ 1.77
Ste. Therese Charge (A) 194 -- -- 194 0.35
Raytheon Settlement (B) 474 -- -- 474 0.85
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 (H) 22 (34) -- (12) (0.03)
Adjusted Net Income (Loss) $(259)$1,752 $(18) $1,475 $3.23
A) The Ste. Therese Charge relates to the previously announced closing of the
Ste. Therese, Quebec assembly plant.
B) The Raytheon Settlement relates to Hughes' settlement with the Raytheon
Company on 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.
-7-
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.
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.
-8-
General Motors Corporation
List of Special Items - After Tax
(dollars in millions)
Year to Date 2000
GMNA GME GMLAAM GMAP Hughes Other
ACO
Reported Net Income (Loss) $3,174 $(676) $26 $(233) $829 $(281)
Phase-out of Oldsmobile (I) 939 -- -- -- -- --
Postemployment Benefits (J) 294 -- -- -- -- --
Capacity Reduction (K) -- 419 -- -- -- --
Satellite Businesses Gain (L) -- -- -- -- (1,132) --
Adjusted Net Income (Loss) $4,407 $(257) $26 $(233) $(303) $(281)
Total GMAC Other Total Diluted
ACO FIO GM EPS
Reported Net Income (Loss) $2,839 $1,602 $11 $4,452 $6.68
Phase-out of Oldsmobile (I) 939 -- -- 939 1.59
Postemployment Benefits (J) 294 -- -- 294 0.50
Capacity Reduction (K) 419 -- -- 419 0.71
Satellite Businesses Gain(L) (1,132) -- -- (1,132) (0.90)
Adjusted Net Income (Loss) $3,359 $1,602 $11 $4,972 $8.58
I) The Phase-out of Oldsmobile relates to the costs associated with GM's
decision in the fourth quarter of 2000 to phase-out the Oldsmobile division as
the current model lineup product lifecycles come to an end, or when the models
are no longer economically viable.
J) The Postemployment Benefits charge relates to postemployment costs for
termination and other postemployment benefits associated with four North
American manufacturing facilities slated for conversion and capacity reduction
(Oklahoma City, Oklahoma; Delta Engine, Lansing, Michigan; Springhill,
Tennessee; and Wilmington, Delaware).
K) The Capacity Reduction adjustment relates to costs associated with the
reduction in production capacity, including the restructuring of Vauxhall Motors
Limited's manufacturing operations in the U.K.
L) The Satellite Businesses Gain relates to the sale of Hughes' satellite
systems manufacturing businesses to The Boeing Company.
-9-
General Motors Corporation
List of Special Items - After tax
(dollars in millions)
Fourth Quarter 2000
GMNA GME GMLAAM GMAP Hughes Other
ACO
Reported Net Income (Loss) $(254) $(882) $(16) $(107) $1,058 $(119)
Phase-out of Oldsmobile (I) 939 -- -- -- -- --
Postemployment Benefits (J) 294 -- -- -- -- --
Capacity Reduction (K) -- 419 -- -- -- --
Satellite Businesses Gain (L) -- -- -- -- (1,132) --
Adjusted Net Income (Loss) $979 $(463) $(16) $(107) $(74) $(119)
Total GMAC Other Total Diluted
ACO FIO GM EPS
Reported Net Income (Loss) $(320) $409 $ - $89 $(1.16)
Phase-out of Oldsmobile (I) 939 -- -- 939 1.68
Postemployment Benefits (J) 294 -- -- 294 0.53
Capacity Reduction (K) 419 -- -- 419 0.75
Satellite Businesses Gain(L)(1,132) -- -- (1,132) (0.65)
Adjusted Net Income (Loss) $200 $409 $-- $609 $1.15
See page 8 for footnotes (I) - (L).
-10-
General Motors Corporation
Adjusted Corporate Financial Results
Fourth Quarter Year to Date
2001(1) 2000(1) 2001(1) 2000(1)
Total net sales and
revenues ($Mil's) $45,950 $45,001 $177,268 $183,292
Consolidated net
income ($Mil's) $255 $609 $1,475 $4,972
Net margin from
consolidated net income 0.6% 1.4% 0.8% 2.7%
GM $1-2/3 par value
earnings per share
Basic EPS $0.61 $1.16 $3.26 $8.72
Diluted EPS $0.60 $1.15 $3.23 $8.58
GM Class H
earnings per share
Basic EPS $(0.12) $(0.08) $(0.48) $(0.31)
Diluted EPS $(0.12) $(0.08) $(0.48) $(0.31)
Earnings attributable to
GM $1-2/3 par value ($Mil's)
Consolidated net income $255 $609 $1,475 $4,972
Preferred dividends (23) (27) (99) (110)
Losses attributable to
GM Class H 105 66 419 210
Total earnings attributable
to GM $1-2/3 par value $337 $648 $1,795 $5,072
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 556 559 551 582
Diluted shares 559 564 556 591
Cash dividends per share
of common stocks
GM $1-2/3 par value $0.50 $0.50 $2.00 $2.00
GM Class H - - - -
Book value per share of
common stocks at Dec. 31
GM $1-2/3 par value $24.79 $39.36
GM Class H $4.96 $7.87
Total cash at Dec. 31,
excluding Hughes ($Bil's)(2) $11.5 $11.8
Automotive, Communications
Services, and Other Operations ($Mil's)
Depreciation $1,092 $1,404 $4,383 $4,368
Amortization of special
tools 613 901 2,360 2,753
Amortization of intangible
assets 70 99 308 308
Total $1,775 $2,404 $7,051 $7,429
See footnotes on page 14.
-11-
General Motors Corporation
Adjusted Segment Financial Results
Fourth Quarter Year to Date
2001(1) 2000(1) 2001(1) 2000(1)
(dollars in millions)
Total net sales and revenues
GMNA $27,446 $27,434 $106,938 $113,418
GME 6,084 6,043 23,700 25,358
GMLAAM 1,387 1,431 5,833 5,713
GMAP 1,063 1,001 4,201 3,606
Total GMA 35,980 35,909 140,672 148,095
Hughes 2,285 2,188 8,318 8,654
Other 1,034 523 2,501 2,538
Total ACO 39,299 38,620 151,491 159,287
GMAC 6,565 6,218 25,480 23,661
Other Financing 86 163 297 344
Total FIO 6,651 6,381 25,777 24,005
Consolidated net sales
and revenues $45,950 $45,001 $177,268 $183,292
Pre-tax income (loss)
GMNA $528 $1,380 $2,051 $6,448
GME (345) (637) (1,092) (275)
GMLAAM (150) (78) (79) (155)
GMAP (17) (47) 27 (21)
Total GMA 16 618 907 5,997
Hughes (3) (213) (121) (786) (541)
Other (135) (147) (537) (307)
Total ACO (332) 350 (416) 5,149
GMAC 730 658 2,872 2,579
Other Financing (24) (9) (58) 4
Total FIO 706 649 2,814 2,583
Consolidated pre-tax
income $374 $999 $2,398 $7,732
Net income (loss)
GMNA $392 $979 $1,478 $4,407
GME (240) (463) (767) (257)
GMLAAM (111) (16) (80) 26
GMAP 25 (107) 77 (233)
Total GMA 66 393 708 3,943
Hughes (3)(4) (131) (74) (525) (303)
Other (120) (119) (442) (281)
Total ACO (185) 200 (259) 3,359
GMAC 435 409 1,752 1,602
Other Financing 5 -- (18) 11
Total FIO 440 409 1,734 1,613
Consolidated net income $255 $609 $1,475 $4,972
See footnotes on page 14.
-12-
General Motors Corporation
Supplementary Adjusted Segment Financial Results
Fourth Quarter Year to Date
2001(1) 2000(1) 2001(1) 2000(1)
(dollars in millions)
Income tax expense (benefit)
GMNA $150 $365 $537 $1,969
GME (72) (173) (284) (9)
GMLAAM (38) (48) (17) (122)
GMAP 17 (4) 24 17
Total GMA $57 $140 $260 $1,855
Equity income (loss) and
minority interests
GMNA $14 $(36) $(36) $(72)
GME 33 1 41 9
GMLAAM 1 14 (18) 59
GMAP 59 (64) 74 (195)
Total GMA $107 $(85) $61 $(199)
Effective income tax rate
GMNA 28.4% 26.4% 26.2% 30.5%
GME 20.9% 27.2% 26.0% 3.3%
GMLAAM 25.3% 61.5% 21.5% 78.7%
GMAP (100.0%) 8.5% 88.9% (81.0%)
Total ACO (6) 31.0% 17.0% 31.0% 31.0%
Net margins
GMNA 1.4% 3.6% 1.4% 3.9%
GME (3.9%) (7.7%) (3.2%) (1.0%)
GMLAAM (8.0%) (1.1%) (1.4%) 0.5%
GMAP 2.4% (10.7%) 1.8% (6.5%)
Total GMA 0.2% 1.1% 0.5% 2.7%
Hughes (3)(4) (5.7%) (3.4%) (6.3%) (3.5%)
Total ACO (0.5%) 0.5% (0.2%) 2.1%
GMAC 6.6% 6.6% 6.9% 6.8%
Consolidated net income 0.6% 1.4% 0.8% 2.7%
See footnotes on page 14.
-13-
General Motors Corporation
Operating Statistics
Fourth Quarter Year to Date
2001 2000 2001 2000
(units in thousands)
Worldwide Wholesale Sales
United States - Cars 501 597 2,054 2,514
United States - Trucks 644 611 2,433 2,517
Total United States 1,145 1,208 4,487 5,031
Canada, Mexico, and Other 167 174 649 744
Total GMNA 1,312 1,382 5,136 5,775
GME 401 445 1,760 1,879
GMLAAM 166 164 666 634
GMAP 100 113 460 458
Total Worldwide 1,979 2,104 8,022 8,746
Vehicle Unit Deliveries
Chevrolet - Cars 193 185 830 891
Chevrolet - Trucks 539 383 1,860 1,725
Pontiac 115 127 533 613
GMC 163 117 555 529
Buick 105 83 406 405
Oldsmobile 44 65 234 289
Saturn 61 55 261 272
Cadillac 47 41 172 189
Other 14 11 53 40
Total United States 1,281 1,067 4,904 4,953
Canada, Mexico, and
Other 172 167 686 707
Total GMNA 1,453 1,234 5,590 5,660
GME 383 396 1,801 1,856
GMLAAM 166 164 663 605
GMAP 124 128 506 476
Total Worldwide 2,126 1,922 8,560 8,597
Market Share
United States - Cars 25.8% 27.8% 26.9% 28.6%
United States - Trucks 31.4% 26.9% 29.2% 27.0%
Total United States 28.9% 27.3% 28.1% 27.8%
Total North America 28.1% 26.9% 27.6% 27.5%
Total Europe 8.7% 9.0% 9.2% 9.2%
Latin America (5) 23.4% 20.9% 22.4% 20.5%
Asia and Pacific 4.0% 4.1% 3.9% 3.7%
Total Worldwide 15.7% 14.7% 15.1% 15.0%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 14.8% 26.5% 25.7% 27.3%
% Fleet Sales - Trucks 7.5% 12.4% 12.1% 14.8%
Total Vehicles 10.4% 19.3% 18.4% 21.2%
Retail Lease as % of Retail Sales
Total Smartlease and
Smartbuy 4.3% 14.0% 11.9% 21.8%
Days Supply of Inventory
at December 31
United States - Cars 93 109
United States - Trucks 75 127
Capacity Utilization
U.S. and Canada
(2 shift rated) 81.7% 86.8% 79.0% 89.4%
GMNA Net Price (1.5%) (1.7%) (1.3%) (0.7%)
See footnotes on page 14.
-14-
General Motors Corporation
Operating Statistics
Fourth Quarter Year to Date
2001 2000 2001 2000
GMAC's U.S. Cost
of Borrowing 4.76% 6.81% 5.51% 6.64%
Current Debt Spreads Over
U.S. Treasuries
2 Year 195 bp 125 bp
5 Year 215 bp 200 bp
10 Year 225 bp 235 bp
Worldwide Employment
at Dec. 31, Excluding
Contract (in 000's)
United States Hourly 126 133
United States Salary 42 44
Total United States 168 177
Canada,Mexico, and Other 34 35
GMNA 202 212
GME 73 89
GMLAAM 23 24
GMAP 11 11
Hughes 12 11
GMAC 28 29
Other 13 12
Total 362 388
Worldwide Payrolls ($Bil's)$4.8 $5.1 $19.8 $21.6
Footnotes:
(1) Adjusted amounts represent the reported amounts less the effects of
special items. Special items for year to date 2001 and 2000 are detailed
on pages 6-7 and 8, respectively. Special items for fourth quarter 2000
are detailed on page 9. There are no special items in the fourth quarter
of 2001. The 2001 amounts, include the $97 million pre-tax and after-tax
charge ($0.14 EPS) resulting from the currency devaluation in Argentina
(GMLAAM $53 million; Hughes $29 million; GMAC $15 million).
(2) Represents total cash for Automotive, Communications Services, and Other
Operations, excluding Hughes, which includes cash and marketable
securities, as well as approximately $3.0 billion invested in short-term
fixed income securities of the Corporation's Voluntary Employees'
Beneficiary Association Trust.
(3) Excludes the effects of purchase accounting adjustments related to General
Motors' acquisition of Hughes in 1985.
(4) Excludes Hughes Series A Preferred Stock dividends payable to General
Motors.
(5) Latin America excludes the Middle East and Africa.
(6) Excludes the effect of the currency devaluation in Argentina in 2001 and
Hughes' disposal of DirecTV Japan in 2000.
-15-
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended December 31, 2001
2001 2000
(dollars in millions except per share amounts)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
Total net sales and revenues $45,950 $46,341
Cost of sales and other expenses 37,293 36,776
Selling, general, and
administrative expenses 6,131 6,648
Interest expense 2,152 2,486
Total costs and expenses 45,576 45,910
Income before income taxes and
minority interests 374 431
Income tax expense 180 245
Equity income (loss) and
minority interests 61 (97)
Net income 255 89
Dividends on preference stocks (23) (27)
Earnings attributable to common stocks $232 $62
Basic earnings (losses) per share
attributable to common stocks
Earnings per share attributable to
$1-2/3 par value $0.61 $(1.14)
Earnings per share attributable to
Class H $(0.12) $0.80
Earnings (losses) per share
attributable to common stocks
assuming dilution
Earnings per share attributable to
$1-2/3 par value $0.60 $(1.16)
Earnings per share attributable to
Class H $(0.12) $0.76
-16-
CONSOLIDATED STATEMENTS OF INCOME - continued
Three Months Ended
December 31,
2001 2000
(dollars in millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS
Total net sales and revenues $39,299 $39,960
Cost of sales and other expenses 35,083 34,895
Selling, general, and administrative
expenses 4,206 4,942
Total costs and expenses 39,289 39,837
Interest expense 222 167
Net expense from transactions with
Financing and Insurance Operations 120 174
Loss before income taxes and
minority interests (332) (218)
Income tax expense (benefit) (76) 10
Equity income (loss) and
minority interests 71 (92)
Net loss - Automotive Communications
Services, and Other Operations $(185) $(320)
FINANCING AND INSURANCE OPERATIONS
Total revenues $6,651 $6,381
Interest expense 1,930 2,319
Depreciation and amortization expense 1,428 1,502
Operating and other expenses 1,885 1,658
Provisions for financing and
insurance losses 822 427
Total costs and expenses 6,065 5,906
Net income from transactions with
Automotive, Communications Services,
and Other Operations (120) (174)
Income before income taxes and
minority interests 706 649
Income tax expense 256 235
Equity income (loss) and minority interests (10) (5)
Net Income - Financing and
Insurance Operations $440 $409
-17-
CONSOLIDATED STATEMENTS OF INCOME - continued
Years Ended December 31,
2001 2000 1999
(dollars in millions except per share amounts)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
Total net sales and revenues $177,260 $184,632 $176,558
Cost of sales and other expenses 143,850 145,664 140,708
Selling, general, and
administrative expenses 23,302 22,252 19,053
Interest expense 8,590 9,552 7,750
Total costs and expenses 175,742 177,468 167,511
Income before income taxes and
minority interests 1,518 7,164 9,047
Income tax expense 768 2,393 3,118
Equity income (loss) and
minority interests (149) (319) (353)
Income from continuing operations 601 4,452 5,576
Income from discontinued operations - - 426
Net income 601 4,452 6,002
Dividends on preference stocks (99) (110) (80)
Earnings attributable to common stocks $502 $4,342 $5,922
Basic earnings (losses) per share
attributable to common stocks
$1-2/3 par value
Continuing operations $1.78 $6.80 $8.70
Discontinued operations - - 0.66
Earnings per share attributable
to $1-2/3 par value $1.78 $6.80 $9.36
Earnings per share attributable
to Class H $(0.55) $0.56 $(0.26)
Earnings (losses) per share
attributable to common
stocks assuming dilution
$1-2/3 par value
Continuing operations $1.77 $6.68 $8.53
Discontinued operations - - 0.65
Earnings per share attributable
to $1-2/3 par value $1.77 $6.68 $9.18
Earnings per share attributable
to Class H $(0.55) $0.55 $(0.26)
-18-
CONSOLIDATED STATEMENTS OF INCOME - concluded
Years Ended December 31,
2001 2000 1999
(dollars in millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS
Total net sales and revenues $151,491 $160,627 $156,107
Cost of sales and other expenses 135,620 138,303 134,111
Selling, general, and
administrative expenses 16,043 16,246 14,324
Total costs and expenses 151,663 154,549 148,435
Interest expense 751 815 828
Net expense from transactions with
Financing and Insurance Operations 435 682 308
Income (loss) from continuing
operations before income
taxes and minority interests (1,358) 4,581 6,536
Income tax (benefit) expense (270) 1,443 2,167
Equity income (loss) and
minority interests (79) (299) (327)
Income (loss) from
continuing operations (1,167) 2,839 4,042
Income from
discontinued operations -- -- 426
Net income (loss) - Automotive,
Communications Services, and
Other Operations $(1,167) $2,839 $4,468
Years Ended December 31
2001 2000 1999
(dollars in millions)
FINANCING AND INSURANCE OPERATIONS
Total revenues $25,769 $24,005 $20,451
Interest expense 7,839 8,737 6,922
Depreciation and amortization expense 5,857 5,982 5,445
Operating and other expenses 7,105 5,805 4,595
Provisions for financing and
insurance losses 2,527 1,580 1,286
Total costs and expenses 23,328 22,104 18,248
Net income from transactions
with Automotive, Communications
Services, and Other Operations (435) (682) (308)
Income before Income taxes and
minority interests 2,876 2,583 2,511
Income tax expense 1,038 950 951
Equity income (loss) and
minority interests (70) (20) (26)
Net income - Financing and
Insurance Operations $1,768 $1,613 $1,534
-19-
CONSOLIDATED BALANCE SHEETS
December 31,
2001 2000
GENERAL MOTORS CORPORATION AND SUBSIDIARIES (dollars in millions)
ASSETS
Automotive, Communications Services,and
Other Operations
Cash and cash equivalents $8,432 $9,119
Marketable securities 790 1,161
Total cash and marketable securities 9,222 10,280
Accounts and notes receivable (less allowances) 5,406 5,835
Inventories (less allowances) 10,034 10,945
Equipment on operating leases
(less accumulated depreciation) 4,524 5,699
Deferred income taxes and other current assets 7,877 8,388
Total current assets 37,063 41,147
Equity in net assets of nonconsolidated
associates 4,950 3,497
Property - net 34,908 33,977
Intangible assets - net 13,721 7,622
Deferred income taxes 22,294 14,870
Other assets 17,274 32,243
Total Automotive, Communications
Services, and Other Operations assets 130,210 133,356
Financing and Insurance Operations
Cash and cash equivalents 10,123 1,165
Investments in securities 10,669 9,595
Finance receivables - net 99,813 92,415
Investment in leases and other receivables 34,618 36,752
Other assets 36,979 27,846
Net receivable from Automotive, Communications
Services, and Other Operations 1,557 1,971
Total Financing and Insurance
Operations assets 193,759 169,744
Total assets $323,969 $303,100
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive, Communications Services, and
Other Operations
Accounts payable (principally trade) $18,297 $18,309
Loans payable 2,402 2,208
Accrued expenses 34,090 33,252
Net payable to Financing and
Insurance Operations 1,557 1,971
Total current liabilities 56,346 55,740
Long-term debt 10,726 7,410
Postretirement benefits other than pensions 34,515 34,306
Pensions 10,790 3,480
Other liabilities and deferred income taxes 13,794 15,768
Total Automotive, Communications
Services,and Other Operations
liabilities 126,171 116,704
Financing and Insurance Operations
Accounts payable 7,900 7,416
Debt 153,186 135,037
Other liabilities and deferred
income taxes 16,259 12,922
Total Financing and Insurance
Operations liabilities 177,345 155,375
Minority interests 746 707
General Motors - obligated mandatorily
redeemable preferred securities of
subsidiary trusts holding solely
junior subordinated debentures of
General Motors
Series G -- 139
Stockholders' equity
$1-2/3 par value common stock
(issued, 559,044,427 and 548,181,757 shares) 932 914
Class H common stock (issued, 877,505,382
and 875,286,559 shares) 88 88
Capital surplus (principally additional
paid-in capital) 21,519 21,020
Retained earnings 9,463 10,119
Subtotal 32,002 32,141
Accumulated foreign currency
translation adjustments (2,919) (2,502)
Net unrealized loss on derivatives (307) --
Net unrealized gains on securities 512 581
Minimum pension liability adjustment (9,581) (45)
Accumulated other
comprehensive loss (12,295) (1,966)
Total stockholders' equity 19,707 30,175
Total liabilities and
stockholders' equity $323,969 $303,100
-20-
CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Years Ended December 31,
2001 2000 1999
Auto- Auto- Auto-
motive, Financing motive, Financing motive Financing
Comm. and Comm. and Comm. and
Serv., Insurance Serv., Insurance Serv., Insurance
and and and
Other Other Other
(dollars in millions)
Cash flows from
operating activities
Income (loss) from
continuing
operations (1,167) 1,768 $2,839 $1,613 $4,042 $1,534
Adjustments to
reconcile income
(loss) from
continuing
operations to net
cash provided by
operating activities
Depreciation and
amortization
expenses 7,051 5,857 7,429 5,982 6,873 5,445
Postretirement
benefits
other than
pensions,
not of payments
and VEBA
contributions 1,861 20 772 27 (1,057) 21
Pension expense,
net of contributions 148 - 128 - (808) -
Originations and
purchases of
mortgage loans - (109,513) - (51,202) - (53,006)
Proceeds on sales
of mortgage loans - 105,086 - 51,444 - 55,777
Originations and
purchases of
mortgage securities - (3,298) - (1,571) - (1,309)
Proceeds on sales of
mortgage securities - 2,875 - 994 - 1,545
Change in other
investments
and miscellaneous
assets 959 (1,018) 1,154 (1,692) 522 (127)
Change in other
operating assets
and liabilities (2,056) 850 724 2,505 7,523 (23)
Other (897) 394 (2,175) 779 (951) 944
Net cash provided by
operating activities $5,899 $3,020 $10,871 $8,879 $16,144 $10,801
Cash flows from investing activities
Expenditures for
property (8,611) (20) (9,200) (522) (7,061) (323)
Investments in
marketable
securities
- acquisitions (857) (34,198) (2,520) (24,599) (4,149) (21,257)
Investments in
marketable
securities
- liquidations 1,228 33,124 3,057 24,114 2,886 20,593
Mortgage servicing
rights
- acquisitions - (1,986) - (1,096) - (1,424)
Mortgage servicing
rights
- liquidations - 28 - 12 - 35
Finance receivables
- acquisitions - (236,723) - (214,666) - (186,379)
Finance receivables
- liquidations - 131,447 - 143,242 - 130,293
Proceeds from sales
of finance
receivables - 96,029 - 58,369 - 48,178
Operating leases
- acquisitions (5,214) (12,826) (6,709) (15,174) (6,415)(16,750)
Operating leases
- liquidations 5,943 11,780 6,149 9,844 4,243 7,836
Investments in
companies, net of
cash acquired (743) (542) (4,302) (2,077) (2,706) (2,402)
Net investing
activity
with Financing
and
Insurance
Operations (514) - (1,069) - 75 -
Other 176 (459) 3,281 93 (924) 732
Net cash used
in investing
activities (8,592) (14,346) (11,313) (22,460) (14,051)(20,868)
Cash flows from financing activities
Net increase
(decrease) in
loans payable 194 (20,238) 142 7,723 140 (2,500)
Long-term debt
- borrowings 5,849 58,498 5,279 22,414 9,090 26,471
Long-term debt
- repayments (2,602) (18,882) (6,196) (16,196) (8,281) (13,078)
Net financing
activity with
Automotive,
Communications
Services, and
Other Operations - 514 - 1,069 - (75)
Repurchases of
common and preference
stocks (264) - (1,613) - (3,870) -
Proceeds from
issuing common
stocks 100 - 2,792 - 2,090 -
Proceeds from
sales of treasury
stocks 418 - - - - -
Cash dividends
paid to
stockholders (1,201) - (1,294) - (1,367) -
Net cash provided by
(used in) financing
activities 2,494 19,892 (890) 15,010 (2,198) 10,818
Effect of exchange
rate changes on
cash and cash
equivalents (74) (22) (249) (6) (206) -
Net transactions
with Automotive/
Financing
Operations (414) 414 970 (970) 185 (185)
Net cash (used in)
provided by
continuing
operations (687) 8,958 (611) 453 (126) 566
Net cash provided by
discontinued
operations - - - - 128 -
Net (decrease) increase
in cash and cash
equivalents (687) 8,958 (611) 453 2 566
Cash and cash equivalents
at beginning of
the year 9,119 1,165 9,730 712 9,728 146
Cash and cash equivalents
at end of
the year $8,432 $10,123 $9,119 $1,165 $9,730 $712
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