1st Quarter Results
GM Reports Preliminary First Quarter 2008 Financial Results
DETROIT, April 30 --
- First quarter revenue of $42.7 billion
- Positive adjusted automotive earnings before tax, with improvement of
over $160 million
- Positive reported automotive earnings before tax, down by $118 million
- Adjusted net loss of $350 million, reported net loss of $3.3 billion
- Continued strong results in emerging markets
- Liquidity position of $23.9 billion
First Quarter
2008 2007 '08 O/(U) '07
Revenue (Bils.) $42.7 $43.4 $(.7)
Adjusted Automotive Earnings
Before Tax (Mils.)* $392 $231 $161
Reported Automotive Earnings
Before Tax (Mils.)* $68 $186 $(118)
Adjusted Net Income (Mils.)* $(350) $(10) $(340)
Reported Net Income (Mils.)* $(3,251) $(42) $(3,209)
Reported Earnings Per Share
(Dollars)* $(5.74) $(0.07) $(5.67)
Adjusted Operating Cash Flow
(Bils.) $(3.6) $.2 $(3.8)
* 2007 figures reflect continuing operations
General Motors Corp. (NYSE: GM) today announced financial results for the
first quarter of 2008, marked by improved adjusted automotive operating
performance, rapid growth in emerging markets, continued cost performance in
GM North America (GMNA) operations and liquidity of nearly $24 billion,
despite the impact of the American Axle strike on North American operations
and weakness in the U.S. auto industry.
"We continue to leverage our global product portfolio to take advantage of
tremendous growth in key emerging markets, while at the same time taking the
appropriate actions to deal with the challenging economic conditions in the
U.S.," said GM Chairman and Chief Executive Officer, Rick Wagoner.
Reflecting several special items noted below, GM reported a net loss of
$3.3 billion, or $5.74 per share in the first quarter of 2008, compared with a
net loss from continuing operations of $42 million, or $.07 per diluted share,
in the year-ago quarter.
Adjusted automotive earnings before taxes were $392 million, up $161
million despite the significant impact of the American Axle strike and weak
U.S. auto industry (reported earnings declined $118 million). These positive
results were driven by strong combined earnings before taxes of $1 billion in
GM Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific (GMAP) and
GM Europe (GME), which more than offset a loss at GMNA.
Excluding special items, GM posted an adjusted net loss of $350 million,
or $.62 per diluted share in the first quarter of 2008, reflecting losses at
GMAC and tax expenses. These results compare to an adjusted net loss from
continuing operations of $10 million, or $0.01 per diluted share in the first
quarter of 2007.
The reported results for the first quarter of 2008 include unfavorable
special items totaling $2.9 billion. The charges include $1.45 billion to
record a non-cash partial impairment of our equity investment in GMAC. Based
on current market pricing, GM concluded that the estimated fair value of the
common and preferred equity interests it holds in GMAC were approximately
$1.45 billion less than GM's carrying value.
GM also took a non-cash charge of $731 million to increase GM's liability
for estimated net costs associated with GM's support of Delphi's bankruptcy
and restructuring efforts. This charge primarily results from updated
estimates reflecting uncertainty around the nature, value and timing of GM's
recoveries. In addition, GM recorded $394 million in non-cash tax-related
valuation allowances related to deferred tax assets in Europe, and $324
million in charges related to previously-announced restructuring actions in
North America and Europe. Details on all of the special items are included in
the "Highlights" section of this news release.
GM's total revenue for the first quarter of 2008 was $42.7 billion, down
slightly from $43.4 billion in the year-ago quarter primarily due to lower
North America automotive and financial services and insurance revenues.
Automotive revenues outside of North America were up over 20 percent, with
strong growth in China, Brazil, Russia and India.
As reported in the fourth quarter of 2007, and reflected in the remainder
of this release, GM now reports its automotive operations and regional results
on an earnings-before-tax basis, with taxes reported on a total corporate
basis.
GM Automotive Operations
Adjusted profits from GM's global automotive operations improved, with
first quarter 2008 earnings before tax of $392 million on an adjusted basis
(reported earnings before tax of $68 million), compared to $231 million in the
year-ago period (reported earnings before tax of $186 million).
GM sold 2.25 million vehicles in the first quarter of 2008, down less than
one percent from 2.27 million units in the first quarter 2007, with a record
64 percent of sales outside of the United States. Unit sales outside GMNA
were up 8 percent compared with the same quarter last year. Robust sales in
the first quarter in GM's GMLAAM and GMAP regions, and improved sales in the
GME region helped offset a 10 percent unit decline in GMNA.
GMNA
First Quarter
2008 2007 '08 O/(U) '07
Revenue (Bils.) $24.5 $28.1 $(3.6)
Adjusted Earnings Before
Tax (Mils.) $(611) $(269) $(342)
Reported Earnings Before
Tax (Mils.) $(812) $(208) $(604)
GM Market Share 21.7% 22.5% (0.8) p.p
GMNA revenue for the first quarter 2008 was $24.5 billion, compared to
$28.1 billion in the year-ago period. The decline in GMNA first quarter
revenue was significantly impacted by the lost production due to the American
Axle strike. Other factors include a softer U.S. market and planned actions
to maintain lean inventories. With the industry shift toward more fuel-
efficient vehicles, GM's most recently launched passenger cars and crossovers,
including the Cadillac CTS, GMC Acadia, Buick Enclave and the all-new
Chevrolet Malibu continue to perform well in the marketplace.
The decline in GMNA first quarter earnings was more than accounted for by
the loss of 100,000 production units resulting from the American Axle strike,
which had an estimated impact to earnings of $0.8 billion. Other factors
included lower volumes resulting from a softer U.S. market and lower market
share, as well as shifts in product mix. Partially offsetting the declines
were favorable material and structural cost performance and commodity hedging
gains and foreign exchange.
GME
First Quarter
2008 2007 '08 O/(U) '07
Revenue (Bils.) $9.9 $8.5 $1.4
Adjusted Earnings Before
Tax (Mils.) $198 $61 $137
Reported Earnings Before
Tax (Mils.) $75 $4 $71
GM Market Share 9.6% 9.7% (0.1) p.p
GME Revenue was up 17 percent and adjusted earnings before tax improved by
$137 million. GME's improved earnings for the first quarter were driven by
improved material cost performance, commodity hedging gains and reduced
warranty costs, which were partially offset by negative foreign exchange and
unfavorable country mix. GME had record first-quarter sales volumes of
572,000 units.
GMLAAM
First Quarter
2008 2007 '08 O/(U) '07
Revenue (Bils.) $4.8 $3.6 $1.2
Adjusted Earnings Before
Tax (Mils.) $517 $254 $263
Reported Earnings Before
Tax (Mils.) $517 $254 $263
GM Market Share 17.9% 16.7% 1.2 p.p.
Adjusted earnings before tax in the GMLAAM region more than doubled in the
first quarter of 2008, driven by continued strong market growth and gains in
GM market share in the region. GMLAAM revenue was up over 33 percent and
volumes were up 20 percent, setting new first-quarter records for both unit
sales and revenue. In addition, Argentina, Egypt and North Africa each set
new quarterly sales records.
GMAP
First Quarter
2008 2007 '08 O/(U) '07
Revenue (Bils.) $5.5 $4.6 $.9
Adjusted Earnings Before
Tax (Mils.) $286 $192 $94
Reported Earnings Before
Tax (Mils.) $286 $143 $143
GM Market Share 7.0% 7.2% (0.2) p.p.
GMAP adjusted earnings before tax increased by 49 percent, driven by
strong volume and improvements in material cost performance, which were
partially offset by mix and pricing deterioration and increased structural
costs incurred to support growth. Revenue and earnings before tax improved
significantly due to the overall volume gains, although market share was down
slightly primarily due to declines in China, Australia and Korea.
GMAC
On a standalone basis, GMAC Financial Services reported a net loss of $589
million for the first quarter 2008, primarily due to significant declines in
the international mortgage operation of Residential Capital, LLC (ResCap).
The company's global automotive and insurance businesses posted profits. GM
reported an adjusted loss before taxes of $276 million for the quarter
attributable to GMAC, as a result of its 49 percent equity interest and
preferred dividends. While continued volatility in the capital and credit
markets put pressure on first quarter results, GMAC continues to take actions
to reduce risk, streamline its cost structure and preserve liquidity in an
effort to protect franchise value.
Cash and Liquidity
Cash, marketable securities, and readily-available assets of the Voluntary
Employees' Beneficiary Association (VEBA) trust totaled $23.9 billion on March
31, 2008, down from $24.7 billion on March 31, 2007. The change in liquidity
reflects adjusted negative operating cash flow of $3.6 billion in the first
quarter 2008. The decrease was driven largely by lower production in GMNA,
including the impact of the American Axle strike. Including undrawn,
committed U.S. credit facilities of approximately $7 billion, GM has access to
more than $30 billion in liquidity.
Looking Forward
In light of the current state of the U.S. economy and automotive industry,
GM has revised its 2008 U.S. total industry seasonally adjusted annual rate
(SAAR) outlook to the mid to high 15 million unit range, down from the low 16
million unit range. As a result of the anticipated softer automotive
industry, GM announced earlier this week that it will eliminate a shift of
production at four assembly plants: Janesville, WI; Pontiac and Flint, MI and
Oshawa, Ont.
"We remain focused on taking the actions necessary to assure GM's long-
term success - product excellence, leadership in advanced propulsion
technology, growth in emerging markets, and accelerating the restructuring of
our U.S. business to achieve sustainable profitability," said Wagoner.
Results for the first quarter of 2008 are preliminary and may be revised
prior to the filing of GM's first quarter report on Form 10-Q in May.
Forward-looking Statements
In this press release and in related comments by our management, our use
of the words "expect," "anticipate," "estimate," "goal," "target," "believe,"
"improve," "intend," "potential," "continue," "designed," "opportunity,"
"risk," "may," "would," "could," "should" or similar expressions is intended
to identify forward-looking statements that represent our current judgment
about possible future events. We believe these judgments are reasonable, but
these statements are not guarantees of any events or financial results, and
our actual results may differ materially due to a variety of important
factors. Such factors include, among others: our ability to realize production
efficiencies, to achieve reductions in costs and to implement capital
expenditures at levels and times planned by management; market acceptance of
our products; shortages of and price increases for fuel; significant changes
in the competitive environment and the effect of competition in our markets,
including on our pricing policies; our ability to maintain adequate liquidity
and financing sources and an appropriate level of debt; ; labor strikes or
work stoppages at our facilities or at our key suppliers; financial
difficulties of our key suppliers; adoption of new laws or changes in existing
laws that may affect the production, licensing, distribution, cost or sale of
our products; 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; satisfaction of the conditions to the
effectiveness of the post-retirement healthcare benefit plan contemplated by
the 2007 National Agreement; and changes in economic conditions, fuel prices,
the housing market, commodity prices, currency exchange rates or political
stability in the markets in which we operate. In addition, GMAC's actual
results may differ materially due to numerous important factors including,
among others, the following: possible downgrades for GMAC or ResCap by rating
agencies; inability to maintain adequate financing sources for its substantial
capital needs; credit exposure to us and recent developments in the
residential mortgage market, especially in the nonprime sector. The most
recent reports on SEC Forms 10-K, 10-Q or 8-K filed by us or GMAC provide
information about these and other factors, which may be revised or
supplemented in future reports to the SEC on those forms.
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): (a) adjusted net income, (b)
adjusted earnings before tax, (c) managerial cash flow and (d) GM North
America vehicle revenue per unit. Each of these financial measures
excludes the impact 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 Corp. (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.
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, impairments, idling and plant closure charges.
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 the 2008
special attrition program agreement between the UAW and GM and
the 2006 special attrition program agreement among the UAW,
GM and Delphi. 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 the 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.
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
(Dollars in millions except per share amounts)
(Unaudited)
Three Months Ended
March 31, 2008
------------------
Earnings EPS
REPORTED
--------
Net Loss - Basic and Diluted * $(3,251) $(5.74)
ADJUSTMENTS
-----------
Pre-Tax Adjustments:
Impairment charges related to investment in
GMAC LLC (A) $1,452
Delphi (B) 731
Restructuring/Special attrition program (C) 324
-------
2,507
Tax Related Adjustments:
Valuation allowance on deferred tax assets (D) 394
-------
Total Adjustments $2,901 $5.12
======= ======
ADJUSTED
Adjusted Loss - Basic and Diluted * $(350) $(0.62)
======= ======
* See average shares outstanding.
General Motors Corporation
List of Special Items
(Unaudited)
(A) Relates to a charge to record impairments of GM's investment in
Common and Preferred Membership Interests of GMAC LLC. During the
period, GM determined that these investments were impaired and that
such impairment was not temporary in nature. Due to the uncertainty
regarding the timing of a recovery, if any, in valuation, GM reduced
the carrying value of these investments to estimated fair value.
(B) Charge primarily results from updated estimates reflecting the
uncertainty around the nature, value and timing of GM's recoveries
upon Delphi's emergence from bankruptcy.
(C) Relates to various restructuring initiatives and the 2008 Special
Attrition Program. Charges recorded by region are as follows:
GMNA: Charges of $201 million for retirement pension and benefit
incentives, pre-retirement incentives and cash buyouts related to
the 2008 Special Attrition Program.
GME: Charges of $123 million were recognized for separation
programs primarily in Belgium, Germany and Sweden.
(D) Relates to a 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
(Dollars in millions except per share amounts)
(Unaudited)
Three Months Ended
March 31, 2007
------------------
Earnings EPS
REPORTED
--------
Loss from continuing operations $(42) $(0.07)
Income from discontinued operations 104 0.18
------- ------
Net Income - Basic and Diluted * $62 $0.11
======= ======
ADJUSTMENTS
-----------
Pre-Tax Adjustments:
Restructuring/Special attrition program (A) $77
Product specific asset impairments (B) 9
Plant closures (C) (41)
-------
45
Tax Related Adjustments:
Income tax impact of pre-tax adjustments (13)
-------
Total Adjustments - Continuing Operations $32 $0.06
======= ======
ADJUSTED
--------
Loss from continuing operations $(10) $(0.01)
Income from discontinued operations 104 0.18
------- ------
Adjusted Income - Basic and Diluted * $94 $0.17
======= ======
See average shares outstanding.
General Motors Corporation
List of Special Items, Pre-Tax
(Unaudited)
(A) Relates to various restructuring initiatives and the 2006 Special
Attrition Program. Charges recorded by region are as follows:
GMNA: Curtailment gains of $14 million and favorable adjustments
of $4 million were recorded under the 2006 Special Attrition Program.
Also includes favorable adjustments of $2 million to our plant
closing reserves.
GME: Charges of $57 million were recognized for separation programs
primarily in Germany and Sweden.
GMAP: Charges of $40 million were recognized relating to separation
programs at GM's Australian facilities.
(B) Relates to a charge of $9 million for product specific asset
impairments at GMAP, which were triggered by a reduction in the
production forecast for GM Holden.
(C) Relates to a curtailment gain of $38 million and favorable reserve
adjustments of $3 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)
First Quarter
------------------
2008 2007
------ ------
REPORTED
--------
Total net sales and revenue $42,670 $43,387
Loss from continuing operations $(3,251) $(42)
Income from discontinued
operations $-- $104
Net income (loss) $(3,251) $62
Net margin from continuing
operations * (7.6)% (0.1)%
Earnings (loss) per share -
basic and diluted
Continuing operations $(5.74) $(0.07)
Income from discontinued
operations -- 0.18
------ -------
Net income (loss) $(5.74) $0.11
====== =======
ADJUSTED
--------
Total net sales and revenue $42,670 $43,387
Loss from continuing operations $(350) $(10)
Income from discontinued
operations $-- $104
Net income (loss) $(350) $94
Net margin from continuing
operations * (0.8)% --%
Earnings (loss) per share -
basic and diluted
Continuing operations $(0.62) $(0.01)
Income from discontinued
operations -- 0.18
------ ------
Net income (loss) $(0.62) $0.17
====== ======
See reconciliation of adjusted financial results.
* Calculated as Loss from continuing operations / Total
net sales and revenue.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
First Quarter
------------------
2008 2007
------ ------
GM common stock average shares outstanding: (Millions)
------------------
Reported (GAAP) and Adjusted (Non-GAAP):
Basic and diluted shares 566 566
Cash dividends per share of
common stock $0.25 $0.25
Automotive cash & marketable securities and
readily-available assets in VEBA at March 31: (Billions)
------------------
Automotive cash & marketable
securities $23.2 $21.1
Readily-available assets in VEBA 0.7 3.6
------ -----
Total automotive cash & marketable
securities and readily-available
assets in VEBA $23.9 $24.7
====== =====
Automotive Operations: (Millions)
------------------
Depreciation $1,226 $1,245
Amortization of special tools 772 720
Amortization of intangible
assets 20 17
------ ------
Total $2,018 $1,982
====== ======
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
First Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Net sales and
revenue:
GMNA $24,543 $28,057 $-- $-- $24,543 $28,057
GME 9,909 8,471 -- -- 9,909 8,471
GMLAAM 4,763 3,577 -- -- 4,763 3,577
GMAP 5,477 4,568 -- -- 5,477 4,568
Auto Elimination(a) (2,567) (2,222) -- -- (2,567) (2,222)
------- ------- ---- ---- ------- -------
Total GMA 42,125 42,451 -- -- 42,125 42,451
Corporate & Other -- -- -- -- -- --
------- ------- ---- ---- ------- -------
Total Auto & Other 42,125 42,451 -- -- 42,125 42,451
------- ------- ---- ---- ------- -------
GMAC -- -- -- -- -- --
Other Financing 545 936 -- -- 545 936
------- ------- ---- ---- ------- -------
Total Financing 545 936 -- -- 545 936
------- ------- ---- ---- ------- -------
Total $42,670 $43,387 $-- $-- $42,670 $43,387
======= ======= ==== ==== ======= =======
Income (loss) from continuing
operations before income taxes,
other equity income and minority
interests:
GMNA $(795) $(211) $201 $(61) $(594) $(272)
GME 69 2 123 57 192 59
GMLAAM 518 255 -- -- 518 255
GMAP 202 94 -- 49 202 143
Auto Elimination (a) 2 (7) -- -- 2 (7)
------- ------- ----- ---- ------- -------
Total GMA (4) 133 324 45 320 178
Corporate & Other (a)(1,029) (210) 731 -- (298) (210)
------- ------- ----- ---- ------- -------
Total Auto & Other (1,033) (77) 1,055 45 22 (32)
------- ------- ----- ---- ------- -------
GMAC (1,728) (134) 1,452 -- (276) (134)
Other Financing (a) 104 54 -- -- 104 54
------- ------- ----- ---- ------- -------
Total Financing (1,624) (80) 1,452 -- (172) (80)
------- ------- ----- ---- ------- -------
Total $(2,657) $(157) $2,507 $45 $(150) $(112)
======= ======= ====== ==== ======= =======
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
First Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Equity income (loss), net of tax:
GMNA $(20) $13 $-- $-- $(20) $13
GME 13 8 -- -- 13 8
GMLAAM 5 6 -- -- 5 6
GMAP 134 127 -- -- 134 127
Auto Elimination -- -- -- -- -- --
------- ------- ---- ---- ------- -------
Total GMA 132 154 -- -- 132 154
Corporate & Other -- 2 -- -- -- 2
------- ------- ---- ---- ------- -------
Total Auto & Other 132 156 -- -- 132 156
------- ------- ---- ---- ------- -------
GMAC -- -- -- -- -- --
Other Financing -- -- -- -- -- --
------- ------- ---- ---- ------- -------
Total Financing -- -- -- -- -- --
------- ------- ---- ---- ------- -------
Total $132 $156 $-- $-- $132 $156
======= ======= ==== ==== ======= =======
Minority interests, net of tax:
GMNA $3 $(10) $-- $-- $3 $(10)
GME (7) (6) -- -- (7) (6)
GMLAAM (6) (7) -- -- (6) (7)
GMAP (50) (78) -- -- (50) (78)
Auto Elimination -- -- -- -- -- --
------- ------- ---- ---- ------- -------
Total GMA (60) (101) -- -- (60) (101)
Corporate & Other -- (1) -- -- -- (1)
------- ------- ---- ---- ------- -------
Total Auto & Other (60) (102) -- -- (60) (102)
------- ------- ---- ---- ------- -------
GMAC -- -- -- -- -- --
Other Financing (13) -- -- -- (13) --
------- ------- ---- ---- ------- -------
Total Financing (13) -- -- -- (13) --
------- ------- ---- ---- ------- -------
Total $(73) $(102) $-- $-- $(73) $(102)
======= ======= ==== ==== ======= =======
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
First Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Pre-tax earnings
(loss): *
GMNA $(812) $(208) $201 $(61) $(611) $(269)
GME 75 4 123 57 198 61
GMLAAM 517 254 -- -- 517 254
GMAP 286 143 -- 49 286 192
Auto Elimination (a) 2 (7) -- -- 2 (7)
------- ------- ----- ---- ------- -------
Total GMA 68 186 324 45 392 231
Corporate & Other (a)(1,029) (209) 731 -- (298) (209)
------- ------- ----- ---- ------- -------
Total Auto & Other (961) (23) 1,055 45 94 22
------- ------- ----- ---- ------- -------
GMAC (1,728) (134) 1,452 -- (276) (134)
Other Financing (a) 91 54 -- -- 91 54
------- ------- ----- ---- ------- -------
Total Financing (1,637) (80) 1,452 -- (185) (80)
------- ------- ----- ---- ------- -------
Total $(2,598) $(103) $2,507 $45 $(91) $(58)
======= ======= ===== ==== ======= =======
Income tax expense (benefit):
Corporate & Other $645 $(67) $(394) $13 $251 $(54)
Other Financing (a) 8 6 -- -- 8 6
------- ------- ---- ---- ------- -------
Total $653 $(61) $(394) $13 $259 $(48)
======= ======= ==== ==== ======= =======
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)
First Quarter
---------------
2008 2007
---- ----
Automotive & Other Adjusted Operating Cash Flow:
Total Auto & Other pre-tax loss * $(1.0) $ --
Depreciation and amortization 2.0 2.0
Capital expenditures (1.9) (1.2)
Change in receivables, payables and
inventory (2.0) --
Pension/OPEB expense (net of payments) (0.7) (0.5)
Accrued expenses and other -- (0.1)
------ ------
Total Auto & Other Adjusted Operating Cash Flow $(3.6) $0.2
====== ======
* Defined here as Loss from continuing operations before
income taxes and after equity income and minority interests.
General Motors Corporation
Operating Statistics
(Unaudited)
First Quarter
---------------
2008 2007
Worldwide Production Volume: (Units in thousands)
--------------------
GMNA - Cars 360 399
GMNA - Trucks 525 664
-------- --------
Total GMNA 885 1,063
GME 493 511
GMLAAM 243 222
GMAP* 612 544
-------- --------
Total Worldwide ** 2,233 2,340
======== ========
Vehicle Unit Deliveries:
Chevrolet - Cars 181 187
Chevrolet - Trucks 299 362
Pontiac 72 79
GMC 104 111
Buick 38 43
Saturn 48 57
Cadillac 47 47
Other 17 23
-------- --------
Total United States 806 909
Canada, Mexico and Other 141 146
-------- --------
Total GMNA 947 1,055
GME 572 554
GMLAAM 323 270
GMAP * 411 388
-------- --------
Total Worldwide ** 2,254 2,268
======== ========
Market Share:
United States - Cars 19.1% 19.5%
United States - Trucks 24.9% 25.5%
Total United States 22.1% 22.8%
Total GMNA 21.7% 22.5%
Total GME 9.6% 9.7%
Total GMLAAM 17.9% 16.7%
Total GMAP * 7.0% 7.2%
Total Worldwide 12.5% 13.0%
U.S. Retail/Fleet Mix:
% Fleet Sales - Cars 33.5% 36.8%
% Fleet Sales - Trucks 21.9% 18.4%
Total Vehicles 26.7% 25.5%
GMNA Capacity Utilization *** 76.1% 88.1%
* GMAP production and sales volume includes SAIC-GM Wuling Automobile
Co. Ltd. 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)
First Quarter
---------------
2008 2007
---- ----
GMAC's share of GM retail sales (U.S. only)
Total consumer volume (retail
and lease) as % of retail 49% 46%
SmartLease as % of retail 19% 16%
Worldwide Employment at March 31: (Thousands)
---------------
United States - Hourly (b) 76 83
United States - Salaried (b) 32 33
----- -----
Total United States 108 116
Canada, Mexico and Other 28 29
----- -----
GMNA 136 145
GME 58 59
GMLAAM 35 33
GMAP 35 34
Other 2 2
----- -----
Total GM 266 273
===== =====
(Billions)
---------------
Worldwide Payroll $4.3 $4.6
---------------
Footnotes:
(a) Auto Eliminations, Corporate & Other and Other Financing include
inter-company eliminations.
(b) Includes approximately 2,350 hourly and 1,125 salary employees of
Allison Transmission at March 31, 2007.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
------------------
2008 2007
------ ------
Net sales and revenue
Automotive sales $42,125 $42,451
Financial services and insurance revenue 545 936
------- -------
Total net sales and revenue 42,670 43,387
------- -------
Costs and expenses
Automotive cost of sales 38,333 38,889
Selling, general and administrative
expense 3,699 3,311
Financial services and insurance expense 496 883
Other expenses 731 --
------- -------
Total costs and expenses 43,259 43,083
------- -------
Operating income (loss) (589) 304
Equity in loss of GMAC LLC (1,612) (183)
Automotive and other interest expense (774) (799)
Automotive interest income and other
non-operating income, net 318 521
------- -------
Loss from continuing operations before
income taxes, equity income and minority
interests (2,657) (157)
Income tax expense (benefit) 653 (61)
Equity income, net of tax 132 156
Minority interests, net of tax (73) (102)
------- -------
Loss from continuing operations (3,251) (42)
Income from discontinued operations, net
of tax -- 104
------- -------
Net income (loss) $(3,251) $62
======= =======
Earnings (loss) per share, basic and diluted:
Continuing operations $(5.74) $(0.07)
Discontinued operations -- 0.18
------- -------
Total $(5.74) $0.11
======= =======
Weighted average common shares
outstanding, basic and diluted (millions) 566 566
======= =======
Cash dividends per share $0.25 $0.25
======= =======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
March 31, December 31, March 31,
2008 2007 2007
--------- ----------- ---------
ASSETS
Current Assets
Cash and cash equivalents $21,362 $24,549 $20,923
Marketable securities 1,831 2,139 159
--------- -------- --------
Total cash and marketable
securities 23,193 26,688 21,082
Accounts and notes receivable, net 10,071 9,659 9,697
Inventories 16,915 14,939 15,431
Equipment on operating leases, net 4,826 5,283 5,650
Other current assets and deferred
income taxes 4,033 3,566 13,101
--------- ---------- ----------
Total current assets 59,038 60,135 64,961
Financing and Insurance
Operations Assets
Cash and cash equivalents 239 268 301
Investments in securities 212 215 187
Equipment on operating leases, net 5,304 6,712 10,457
Equity in net assets of GMAC LLC 5,391 7,079 7,355
Other assets 2,864 2,715 3,684
--------- -------- --------
Total Financing and Insurance
Operations assets 14,010 16,989 21,984
Non-Current Assets
Equity in net assets of
nonconsolidated affiliates 1,931 1,919 2,001
Property, net 43,282 43,017 41,612
Goodwill and intangible assets,
net 1,093 1,066 1,058
Deferred income taxes 857 2,116 32,588
Prepaid pension 20,593 20,175 17,639
Other assets 4,044 3,466 3,467
--------- -------- --------
Total non-current assets 71,800 71,759 98,365
--------- -------- --------
Total Assets $144,848 $148,883 $185,310
========= ======== ========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable (principally
trade) $29,793 $29,439 $30,065
Short-term borrowings and current
portion of long-term debt 5,968 6,047 4,834
Accrued expenses 34,657 34,822 33,517
--------- --------- ---------
Total current liabilities 70,418 70,308 68,416
Financing and Insurance
Operations Liabilities
Debt 3,879 4,908 8,297
Other liabilities and deferred
income taxes 928 905 1,705
--------- -------- --------
Total Financing and Insurance
Operations Liabilities 4,807 5,813 10,002
Non-Current Liabilities
Long-term debt 34,168 33,384 33,120
Postretirement benefits other
than pensions 46,994 47,375 49,321
Pensions 11,624 11,381 11,293
Other liabilities and deferred
income taxes 16,511 16,102 16,571
--------- -------- --------
Total non-current liabilities 109,297 108,242 110,305
--------- -------- --------
Total liabilities 184,522 184,363 188,723
Commitments and contingencies
Minority interests 1,369 1,614 1,145
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 566,100,839 shares
issued and outstanding at
March 31, 2008, respectively,
756,637,541 and 566,059,249 shares
issued and outstanding at
December 31, 2007, respectively,
and 756,637,541 and 565,738,371
shares issued and outstanding
at March 31, 2007, respectively) 944 943 943
Capital surplus (principally
additional paid-in capital) 15,327 15,319 15,346
Retained deficit (42,847) (39,392) (172)
Accumulated other comprehensive
loss (14,467) (13,964) (20,675)
--------- -------- --------
Total stockholders' deficit (41,043) (37,094) (4,558)
--------- -------- --------
Total Liabilities, Minority
Interests and Stockholders'
Deficit $144,848 $148,883 $185,310
========= ======== ========
SOURCE General Motors Corporation
-0- 04/30/2008
/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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