3rd Quarter Results

GM Earns $440 Million or $0.78 Per Share in Third Quarter 2004 * GMAC reports ninth-consecutive quarter of earnings improvement * GM gains market share in all four automotive regions * U.S. dealer inventory reduced by 230,000 units in the third quarter DETROIT, Oct. 14 -- General Motors Corp. (NYSE: GM) today reported net income of $440 million, or $0.78 per diluted share, in the third quarter of 2004. These results are at the low end of the range of GM's earnings guidance provided in July. In the year-ago quarter, GM reported net income of $425 million, or $0.79 per share, and earnings from continuing operations of $448 million, or $0.80 per share. Revenue rose 3 percent to $44.9 billion. Profits at General Motors Acceptance Corp. (GMAC) continued to be very strong, compared with the prior year, but automotive results were weaker due to increased losses in Europe, lower production volumes in North America, and slower economic growth in China. 'Competition in the automotive business around the globe remains intense, and we are seeing negative pricing in most major markets,' said GM Chairman and Chief Executive Officer Rick Wagoner. 'Even though we increased market share in all four regions, our automotive earnings in the third quarter reflect these challenging market conditions, and were frankly disappointing.' 'These financial results highlight that we've got to move faster in addressing some tough cost challenges like health care in the United States and our overcapacity and high cost footprint in Europe, where we announced major restructuring actions earlier today. Our business strategy remains sound and on track: introduce great cars and trucks, stay aggressive in the market, strive for industry-leading cost competitiveness and quality, and generate cash. But we've got to move more quickly in addressing these challenging, chronic structural-cost issues.' GM Automotive Operations GM's global-automotive business reported a loss of $130 million in the third quarter of 2004, compared with net income of $34 million in the prior-year period. Positive results at GM's Latin America/Africa/Mid-East (GMLAAM) were more than offset by losses at GM North America (GMNA) and GM Europe (GME), and lower profits at GM Asia Pacific (GMAP). GM gained market share in all four regions of the world in the third quarter of 2004, with global market share rising to 15.5 percent from 15.1 percent in the year-ago period. GMNA reported a loss of $22 million in the third quarter of 2004, compared with earnings of $128 million in the third quarter of 2003. GMNA's performance was primarily driven by lower production volumes and unfavorable product mix and pricing, partially offset by lower material costs and a reduction of approximately $250 million after-tax in the reserve set aside for product-liability matters. This reduction was the result of the annual analysis of product- liability reserves. In addition, health-care costs in the United States continue to increase at an excessive rate and are a growing burden on GM's financial results. 'These continuing large increases in health-care costs put GM, and many other U.S. businesses, at a significant disadvantage,' Wagoner said. 'Clearly, the current situation is not sustainable. All of us -- government, business, the health-care industry, labor and health-care consumers -- need to work together to find solutions that ensure U.S. competitiveness in today's global economy.' GM's market share in North America rose to 28.5 percent in the third quarter of 2004, from 28.2 percent in the year-earlier period. In the United States, GM finished the third quarter with strong sales, posting a 20-percent increase for the month of September. That led to a reduction in dealer inventories of 230,000 units during the quarter to 1.137 million cars and trucks. 'GM continues its product renaissance,' Wagoner said. 'In fact, over the next four years we will replace more than 90 percent of our portfolio in North America on a volume basis. Through the remainder of this year, we have important product introductions with the all-new Pontiac G6, the Buick LaCrosse, the Cadillac STS, the Chevrolet Cobalt, and the Opel/Vauxhall Astra GTC in Europe. These products, and the many that follow them, will strengthen our brands and improve our competitiveness.' GME reported a loss of $236 million in the third quarter of 2004, compared with a loss of $152 million in the year-ago quarter. The most-recent quarterly results reflect intense price competition and foreign-exchange losses. GM's market share in Europe rose to 9.6 percent in the third quarter of 2004 from 9.1 percent in the year-ago period. 'The pricing environment in Europe has deteriorated significantly this year, and growth in some of our largest markets remains weak,' Wagoner said. 'In light of these factors, we need to move more aggressively to significantly reduce our cost structure in Europe, especially manufacturing and engineering.' GMAP earned $101 million in the third quarter of 2004, compared with earnings of $162 million in the year-ago quarter, also reflecting lower pricing and unfavorable mix driven by the economic slowdown in China. GM's market share in the Asia Pacific region rose to 5.1 percent in the third quarter from 5.0 percent a year ago. 'The economic slowdown in China affected our financial performance there during the third quarter,' Wagoner said. 'However, we see this situation as temporary. We continue to expect to see significant growth in China and throughout the region in the medium and long term.' GMLAAM earned $27 million in the third quarter of 2004, a substantial improvement from the year-ago loss of $104 million, and the third consecutive quarter of profitability. 'Our strong product portfolio and excellent dealer network have led to market-share gains in South America, South Africa and the Mid-East, while improved economic conditions have led to industry sales growth of 21 percent during the quarter,' Wagoner said, adding GM's market share in the GMLAAM region rose to 17.1 percent in the third quarter of 2004 from 15.6 percent a year ago. GMAC Reflecting strong performance from GMAC's diversified business, GMAC earned $656 million in the third quarter of 2004, up from $630 million in the year-ago quarter. Net income from financing operations totaled $259 million in the third quarter of 2004, compared with $320 million in the prior-year period. Lower credit losses and improved lease residual results were more than offset by lower net margins on stable asset levels. Mortgage operations earned $302 million, up from $253 million in the year-ago period. Higher interest rates had a negative effect on loan production and securitization volumes but a favorable effect on net servicing revenue. GMAC Insurance reported net income of $95 million for the third quarter of 2004, up from $57 million a year ago. Operational strength across the business unit contributed to improved net underwriting results while investment income remained stable compared with the prior year. 'GMAC once again delivered very impressive financial results, in spite of the more challenging interest rate environment,' Wagoner said. 'GMAC has done an excellent job diversifying its earnings base across its portfolio of global businesses, and also diversifying its funding base through new sources of liquidity both here and abroad. GMAC enjoys strong liquidity, and expects to continue to have ample access to the capital markets and other financing sources to meet its needs.' Cash and Liquidity Cash, marketable securities, and short-term assets of the Voluntary Employees' Beneficiary Association (VEBA) Trust totaled $24.5 billion at Sept. 30, 2004, excluding financing and insurance operations, down from $25.0 billion on June 30, 2004. Cash flow is typically lower in the third quarter due to lower production volumes and costs related to the introduction of new vehicles. In addition, GM experienced higher spending on health care than in prior years and additional losses in Europe. For the nine months ended Sept. 30, 2004, automotive cash flow stood at $2.0 billion. While GM expects positive automotive cash flow in the fourth quarter, it has become more challenging to achieve GM's previously stated target of $5 billion for the full year. Looking Ahead GM continues to expect total U.S. industry sales of approximately 17.2 million vehicles in calendar year 2004. As a result of increased losses in Europe and slower growth in Asia Pacific, GM is revising its 2004-calendar-year earnings guidance to between $6.00 and $6.50 per share, excluding one-time items. This is in line with GM's original target at the start of the year and down from the midyear guidance of approximately $7.00 per share. In this press release and related comments by General Motors management, our use of the words 'expect,' 'anticipate,' 'estimate,' 'project,' 'forecast,' 'outlook,' 'target,' 'objective,' 'plan,' 'goal,' 'pursue,' 'on track,' 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-20) 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. About GM General Motors Corp. (NYSE: GM), the world's largest vehicle manufacturer, employs about 325,000 people globally. Founded in 1908, GM has been the global automotive-sales leader since 1931. GM today has manufacturing operations in 32 countries and its vehicles are sold in 192 countries. In 2003, GM sold nearly 8.6 million cars and trucks, about 15 percent of the global vehicle market. GM's global headquarters are at the GM Renaissance Center in Detroit. More information on GM and its products can be found on the company's corporate website at http://www.gm.com . General Motors Corporation List of Special Items - After Tax (dollars in millions except per share amounts) (unaudited) Management believes that the adjusted information set forth herein is useful to investors as it represents how Management views the results of operations and cash of the Corporation and, therefore, is the basis on which internal evaluation metrics are determined. The internal evaluation metrics are those used by the Corporation's Board of Directors to evaluate Management. Three Months Ended Year to Date Sept. 30, 2004 Sept. 30, 2004 -------------- -------------- Net Net Income EPS Income EPS ------ ----- ------ ----- REPORTED -------- Net income $440 $0.78 $3,061 $5.39 === ==== ===== ==== There were no special items in the Third Quarter of 2004. General Motors Corporation List of Special Items - After Tax (dollars in millions except per share amounts) (unaudited) Three Months Ended Year to Date Sept. 30, 2003 Sept. 30, 2003 -------------- -------------- Net Net Income EPS Income EPS ------ ----- ------ ----- REPORTED -------- Income from continuing operations $448 $0.80 $2,864 $5.10 (Loss)from discontinued operations (23) (0.01) (55) (0.02) --- ---- ----- ---- Net income 425 0.79 2,809 5.08 ADJUSTMENTS ----------- Gain on Sale of GM Defense (A) - - (505) (0.90) --- ---- --- ---- Subtotal - - (505) (0.90) ADJUSTED -------- Income from continuing operations $448 $0.80 $2,359 $4.20 (Loss)from discontinued operations (23) (0.01) (55) (0.02) --- ---- ----- ---- Adjusted income $425 $0.79 $2,304 $4.18 === ==== ===== ==== (A) The Gain on Sale of GM Defense relates to the sale of GM's light armored vehicle business to General Dynamics Corporation for net proceeds of approximately $1.1 billion. General Motors Corporation Summary Corporate Financial Results (unaudited) Third Quarter Year to Date -------------- -------------- 2004 2003 2004 2003 ---- ---- ---- ---- (dollars in millions except per share amounts) Total net sales and revenues $44,858 $43,519 $141,691 $136,451 Adjusted $44,858 $43,519 $141,691 $135,637 Income from continuing operations $440 $448 $3,061 $2,864 Adjusted $440 $448 $3,061 $2,359 (Loss) from discontinued operations - (23) - (55) Adjusted - (23) - (55) Net income $440 $425 $3,061 $2,809 Adjusted $440 $425 $3,061 $2,304 Net margin from continuing operations (Income from continuing operations / Total net sales and revenues) 1.0% 1.0% 2.2% 2.1% Adjusted 1.0% 1.0% 2.2% 1.7% Earnings per share - basic $1-2/3 par value Continuing operations $0.78 $0.80 $5.42 $5.11 Discontinued operations - (0.01) - (0.02) ---- ---- ---- ---- Earnings per share $0.78 $0.79 $5.42 $5.09 Earnings per share - diluted $1-2/3 par value Continuing operations $0.78 $0.80 $5.39 $5.10 Discontinued operations - (0.01) - (0.02) ---- ---- ---- ---- Earnings per share $0.78 $0.79 $5.39 $5.08 Earnings per share - diluted adjusted $1-2/3 par value Continuing operations $0.78 $0.80 $5.39 $4.20 Discontinued operations - (0.01) - (0.02) ---- ---- ---- ---- Earnings per share $0.78 (1) $0.79 $5.39 $4.18 GM $1-2/3 par value average shares outstanding (Mil's) Basic shares 565 561 565 561 Diluted shares 567 561 568 561 Cash dividends per share of common stocks GM $1-2/3 par value $0.50 $0.50 $1.50 $1.50 See reconciliation of adjusted financial results and footnotes. General Motors Corporation Summary Corporate Financial Results (unaudited) Third Quarter Year to Date -------------- -------------- 2004 2003 2004 2003 ---- ---- ---- ---- Book value per share of common stocks at Sept. 30 GM $1-2/3 par value $49.34 $13.76 Auto & Other Operations total cash & marketable securities at Sept. 30 ($Bil's) $21.0 $25.9 Cash in short-term VEBA $3.5 $3.4 ---- ---- Total Auto & Other cash & marketable securities plus short-term VEBA $24.5 $29.3 ==== ==== Auto & Other Operations ($Mil's) Depreciation $1,117 $1,063 $3,706 $3,146 Amortization of special tools 737 676 2,237 2,029 Amortization of intangible assets 9 10 25 20 ----- ----- ----- ----- Total $1,863 $1,749 $5,968 $5,195 ===== ===== ===== ===== GM's share of nonconsolidated affiliates' net income (loss) ($Mil's) Italy $30 $- $59 $23 Japan $32 $42 $191 $125 China $80 $142 $390 $311 South Korea $(2) $(22) $(18) $(50) General Motors Corporation Summary Corporate Financial Results (unaudited) Third Quarter 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Total net sales and revenues GMNA $26,343 $26,810 $ - $ - $26,343 $26,810 GME 6,935 6,270 - - 6,935 6,270 GMLAAM 2,166 1,304 - - 2,166 1,304 GMAP 1,601 1,384 - - 1,601 1,384 ------ ------ -- -- ------ ------ Total GMA 37,045 35,768 - - 37,045 35,768 Other 57 77 - - 57 77 ------ ------ -- -- ------ ------ Total Auto & Other 37,102 35,845 - - 37,102 35,845 ------ ------ -- -- ------ ------ GMAC 7,724 7,649 - - 7,724 7,649 Other Financing 32 25 - - 32 25 ------ ------ -- -- ------ ------ Total FIO 7,756 7,674 - - 7,756 7,674 ------ ------ -- -- ------ ------ Total net sales and revenues $44,858 $43,519 $ - $ - $44,858 $43,519 ====== ====== == == ====== ====== Income (loss) from continuing operations before income taxes, equity income, and minority interests GMNA $(69) $200 $ - $ - $(69) $200 GME (439) (251) - - (439) (251) GMLAAM 45 (146) - - 45 (146) GMAP (18) - - - (18) - --- --- -- -- --- --- Total GMA (481) (197) - - (481) (197) Other (148) (374) - - (148) (374) --- --- -- -- --- --- Total Auto & Other (629) (571) - - (629) (571) --- --- -- -- --- --- GMAC 969 962 - - 969 962 Other Financing (2) (4) - - (2) (4) --- --- -- -- --- --- Total FIO 967 958 - - 967 958 --- --- -- -- --- --- Total income (loss) from continuing operations before income taxes, equity income, and minority interests $338 $387 $ - $ - $338 $387 === === == == === === General Motors Corporation Summary Corporate Financial Results (unaudited) Third Quarter 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Income (loss) from continuing operations GMNA $(22) $128 $ - $ - $(22) $128 GME (236) (152) - - (236) (152) GMLAAM 27 (104) - - 27 (104) GMAP 101 162 - - 101 162 --- --- -- -- --- --- Total GMA (130) 34 - - (130) 34 Other (83) (212) - - (83) (212) --- --- -- -- --- --- Total Auto & Other (213) (178) - - (213) (178) --- --- -- -- --- --- GMAC 656 630 - - 656 630 Other Financing (3) (4) - - (3) (4) --- --- -- -- --- --- Total FIO 653 626 - - 653 626 --- --- -- -- --- --- Income (loss) from continuing operations $440 $448 $ - $ - $440 $448 (Loss) from discontinued operations - (23) - - - (23) --- --- -- -- --- --- Net income (loss) $440 $425 $ - $ - $440 $425 === === == == === === Income tax expense (benefit) GMNA $(13) $52 $ - $ - $(13) $52 GME (167) (96) - - (167) (96) GMLAAM 13 (51) - - 13 (51) GMAP (9) 7 - - (9) 7 --- --- -- -- --- --- Total GMA (176) (88) - - (176) (88) Other (65) (152) - - (65) (152) --- --- -- -- --- --- Total Auto & Other (241) (240) - - (241) (240) --- --- -- -- --- --- GMAC 311 374 - - 311 374 Other Financing 1 - - - 1 - --- --- -- -- --- --- Total FIO 312 374 - - 312 374 --- --- -- -- --- --- Income tax expense (benefit) $71 $134 $ - $ - $71 $134 === === == == === === General Motors Corporation Summary Corporate Financial Results (unaudited) Third Quarter 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Effective tax rate Total GM Corp. 21% 35% - - 21% 35% GMNA 19% 26% - - 19% 26% GME 38% 38% - - 38% 38% GMAC 32% 39% - - 32% 39% Tax settlements that were previously expected in the second quarter of 2004 are now expected to be completed in the fourth quarter of 2004. Excluding these settlements, GM's effective tax rate is expected to be approximately 21% on an ongoing quarterly basis. Equity income (loss) and minority interests GMNA $34 $(20) $ - $ - $34 $(20) GME 36 3 - - 36 3 GMLAAM (5) (9) - - (5) (9) GMAP 110 169 - - 110 169 --- --- -- -- --- --- Total GMA $175 $143 $ - $ - $175 $143 === === == == === === General Motors Corporation Summary Corporate Financial Results (unaudited) Year to Date 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Total net sales and revenues GMNA $84,875 $85,331 $ - $ - $84,875 $85,331 GME 22,572 20,195 - - 22,572 20,195 GMLAAM 5,908 3,468 - - 5,908 3,468 GMAP 4,893 3,798 - - 4,893 3,798 ------- ------- -- --- ------- ------- Total GMA 118,248 112,792 - - 118,248 112,792 Other 193 1,211 - (814) 193 397 ------- ------- -- --- ------- ------- Total Auto & Other 118,441 114,003 - (814) 118,441 113,189 ------- ------- -- --- ------- ------- GMAC 22,973 22,434 - - 22,973 22,434 Other Financing 277 14 - - 277 14 ------ ------ -- --- ------ ------ Total FIO 23,250 22,448 - - 23,250 22,448 ------ ------ -- --- ------ ------ Total net sales and revenues $141,691 $136,451 $ - $(814)$141,691 $135,637 ======= ======= == === ======= ======= Income (loss) from continuing operations before income taxes, equity income, and minority interests GMNA $940 $1,029 $ - $ - $940 $1,029 GME (758) (399) - - (758) (399) GMLAAM 64 (286) - - 64 (286) GMAP 28 30 - - 28 30 --- --- -- --- --- --- Total GMA 274 374 - - 274 374 Other (716) (282) - (814) (716) (1,096) --- --- -- --- --- --- Total Auto & Other (442) 92 - (814) (442) (722) ----- ----- -- --- ----- ----- GMAC 3,565 3,440 - - 3,565 3,440 Other Financing (27) (16) - - (27) (16) ----- ----- -- --- ----- ----- Total FIO 3,538 3,424 - - 3,538 3,424 ----- ----- -- --- ----- ----- Total income (loss) from continuing operations before income taxes, equity income, and minority interests $3,096 $3,516 $ - $ (814) $3,096 $2,702 ===== ===== == === ===== ===== General Motors Corporation Summary Corporate Financial Results (unaudited) Year to Date 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Income (loss) from continuing operations GMNA $757 $759 $ - $ - $757 $759 GME (397) (220) - - (397) (220) GMLAAM 38 (219) - - 38 (219) GMAP 612 400 - - 612 400 ----- --- -- --- ----- --- Total GMA 1,010 720 - - 1,010 720 Other (234) (7) - (505) (234) (512) ----- --- -- --- ----- --- Total Auto & Other 776 713 - (505) 776 208 ----- ----- -- --- ----- ----- GMAC 2,302 2,163 - - 2,302 2,163 Other Financing (17) (12) - - (17) (12) ----- ----- -- --- ----- ----- Total FIO 2,285 2,151 - - 2,285 2,151 ----- ----- -- --- ----- ----- Income (loss) from continuing operations $3,061 $2,864 $ - $(505) $3,061 $2,359 (Loss) from discontinued operations - (55) - - - (55) ----- ----- -- --- ----- ----- Net income (loss) $3,061 $2,809 $ - $(505) $3,061 $2,304 ===== ===== == === ===== ===== Income tax expense (benefit) GMNA $162 $268 $ - $ - $162 $268 GME (288) (152) - - (288) (152) GMLAAM 16 (83) - - 16 (83) GMAP (4) 26 - - (4) 26 --- --- -- --- --- --- Total GMA (114) 59 - - (114) 59 Other (485) (303) - (309) (485) (612) --- --- -- --- --- --- Total Auto & Other (599) (244) - (309) (599) (553) ----- ----- -- --- ----- ----- GMAC 1,259 1,308 - - 1,259 1,308 Other Financing (10) (4) - - (10) (4) ----- ----- -- --- ----- ----- Total FIO 1,249 1,304 1,249 1,304 ----- ----- -- --- ----- ----- Income tax expense (benefit) $650 $1,060 $ - $(309) $650 $751 === ===== == === === === General Motors Corporation Summary Corporate Financial Results (unaudited) Year to Date 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Effective tax rate Total GM Corp. 21% 30% - 38% 21% 28% GMNA 17% 26% - - 17% 26% GME 38% 38% - - 38% 38% GMAC 35% 38% - - 35% 38% Tax settlements that were previously expected in the second quarter of 2004 are now expected to be completed in the fourth quarter of 2004. Excluding these settlements, GM's effective tax rate is expected to be approximately 21% on an ongoing quarterly basis. Equity income (loss) and minority interests GMNA $(21) $(2) $ - $ - $(21) $(2) GME 73 27 - - 73 27 GMLAAM (10) (16) - - (10) (16) GMAP 580 396 - - 580 396 --- --- -- -- --- --- Total GMA $622 $405 $ - $ - $622 $405 === === == == === === General Motors Corporation Operating Statistics Third Quarter Year to Date -------------- -------------- 2004 2003 2004 2003 ---- ---- ---- ---- (units in thousands) Worldwide Wholesale Sales United States - Cars 416 453 1,401 1,439 United States - Trucks 679 686 2,160 2,205 ----- ----- ----- ----- Total United States 1,095 1,139 3,561 3,644 Canada, Mexico, and Other 160 113 525 479 ----- ----- ----- ----- Total GMNA 1,255 1,252 4,086 4,123 GME 386 372 1,297 1,246 GMLAAM 190 134 534 377 GMAP 72 71 204 202 ----- ----- ----- ----- Total Worldwide 1,903 1,829 6,121 5,948 ===== ===== ===== ===== Vehicle Unit Deliveries Chevrolet - Cars 265 221 701 612 Chevrolet - Trucks 531 517 1,407 1,395 Pontiac 122 125 378 352 GMC 175 163 458 426 Buick 87 90 249 258 Oldsmobile 3 29 27 96 Saturn 58 70 171 217 Cadillac 63 58 169 154 Other 21 25 60 72 ----- ----- ----- ----- Total United States 1,325 1,298 3,620 3,582 Canada, Mexico, and Other 169 184 518 514 ----- ----- ----- ----- Total GMNA 1,494 1,482 4,138 4,096 GME 461 434 1,500 1,390 GMLAAM 188 140 522 402 GMAP 209 197 659 557 ----- ----- ----- ----- Total Worldwide 2,352 2,253 6,819 6,445 ===== ===== ===== ===== Market Share United States - Cars 26.9% 26.3% 25.4% 25.3% United States - Trucks 31.1% 30.6% 29.4% 29.9% Total United States 29.3% 28.7% 27.6% 27.8% Total North America 28.5% 28.2% 27.0% 27.2% Total Europe 9.6% 9.1% 9.5% 9.3% Total LAAM 17.1% 15.6% 16.8% 15.6% Asia and Pacific 5.1% 5.0% 5.2% 4.7% Total Worldwide 15.5% 15.1% 14.6% 14.5% U.S. Retail/Fleet Mix % Fleet Sales - Cars 36.2% 30.5% 37.1% 30.1% % Fleet Sales - Trucks 12.7% 9.5% 16.1% 12.9% Total Vehicles 22.0% 18.1% 24.6% 20.1% Retail Lease as % of Retail Sales Total Smartlease and Smartbuy 10.8% 6.6% Days Supply of Inventory at Sept. 30 United States - Cars 64 69 United States - Trucks 81 104 GMNA Capacity Utilization (2 shift rated) 83.7% 86.1% 85.5% 88.3% GMNA Vehicle Revenue Per Unit $18,339 $18,984 General Motors Corporation Operating Statistics Third Quarter Year to Date -------------- -------------- 2004 2003 2004 2003 ---- ---- ---- ---- GMAC's U.S. Cost of Borrowing 3.62% 3.40% Current Debt Spreads Over U.S. Treasuries 2 Year 120 bp 185 bp 5 Year 200 bp 210 bp 10 Year 250 bp 265 bp Worldwide Employment at Sept. 30 (in 000's) United States Hourly 112 119 United States Salary 38 40 --- --- Total United States 150 159 Canada, Mexico, and Other 31 31 --- --- GMNA 181 190 GME 62 63 GMLAAM (2) 28 23 GMAP 14 14 GMAC 33 32 Other 5 6 --- --- Total 323 328 === === Worldwide Payrolls ($Bil's) $4.9 $4.9 $15.9 $15.3 Footnotes: --------- (1) This amount is comparable to First Call analysts' consensus. (2) 2004 includes 3,000 employees as a result of the consolidation of GM South Africa. GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------ ------------- 2004 2003 2004 2003 ---- ---- ---- ---- (dollars in millions except per share amounts) Total net sales and revenues $44,858 $43,519 $141,691 $136,451 ------ ------ ------- ------- Cost of sales and other expenses 37,177 35,049 115,304 109,863 Selling, general, and administrative expenses 4,364 5,576 14,731 16,268 Interest expense 2,979 2,507 8,560 6,804 ------- ------- -------- ------- Total costs and expenses 44,520 43,132 138,595 132,935 ------ ------ ------- ------- Income from continuing operations before income taxes, equity income, and minority interests 338 387 3,096 3,516 Income tax expense 71 134 650 1,060 Equity income (loss) and minority interests 173 195 615 408 --- --- ----- ----- Income from continuing operations 440 448 3,061 2,864 Income (loss) from discontinued operations - (23) - (55) --- --- ----- ----- Net Income $440 $425 $3,061 $2,809 === === ===== ===== Basic earnings (loss) per share attributable to common stocks $1-2/3 par value Continuing Operations $0.78 $0.80 $5.42 $5.11 Discontinued Operations - (0.01) - (0.02) ---- ---- ---- ---- Earnings per share attributable to $1-2/3 par value $0.78 $0.79 $5.42 $5.09 ==== ==== ==== ==== Earnings (loss) per share from discontinued operations attributable to Class H $ - $(0.02) $ - $(0.04) == ==== == ==== Earnings (loss) per share attributable to common stocks assuming dilution $1-2/3 par value Continuing Operations $0.78 $0.80 $5.39 $5.10 Discontinued Operations - (0.01) - (0.02) ---- ---- ---- ---- Earnings per share attributable to $1-2/3 par value $0.78 $0.79 $5.39 $5.08 ==== ==== ==== ==== Earnings (loss) per share from discontinued operations attributable to Class H $ - $(0.02) $ - $(0.04) == ==== == ==== GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------ ------------- 2004 2003 2004 2003 ---- ---- ---- ---- (dollars in millions) AUTOMOTIVE AND OTHER OPERATIONS Total net sales and revenues $37,102 $35,845 $118,441 $114,003 ------ ------ ------- ------- Cost of sales and other expenses 34,843 33,133 108,590 104,288 Selling, general, and administrative expenses 2,200 2,703 8,380 8,393 ------ ------ ------- ------- Total costs and expenses 37,043 35,836 116,970 112,681 Interest expense 622 516 1,780 1,091 Net expense from transactions with Financing and Insurance Operations 66 64 133 139 ---- ---- ---- ---- Income (loss) from continuing operations before income taxes, equity income, and minority interests (629) (571) (442) 92 Income tax (benefit) (241) (240) (599) (244) Equity income (loss) and minority interests 175 153 619 377 --- --- --- --- Income from continuing operations (213) (178) 776 713 Income (loss) from discontinued operations - (23) - (55) --- --- --- --- Net Income - Automotive and Other Operations $(213) $(201) $776 $658 === === === === FINANCING AND INSURANCE OPERATIONS Total revenues $7,756 $7,674 $23,250 $22,448 ----- ----- ------ ------ Interest expense 2,357 1,991 6,780 5,713 Depreciation and amortization expense 1,359 1,398 3,959 4,282 Operating and other expenses 2,171 2,561 6,454 6,842 Provisions for financing and insurance losses 968 830 2,652 2,326 ------ ------ ------ ------- Total costs and expenses 6,855 6,780 19,845 19,163 ----- ----- ------ ------ Net income from transactions with Automotive and Other (66) (64) (133) (139) ----- ----- ------ ------ Operations Income before income taxes, equity income, and minority interests 967 958 3,538 3,424 Income tax expense 312 374 1,249 1,304 Equity income (loss) and minority interests (2) 42 (4) 31 ---- ---- ------ ------ Net income - Financing and Insurance Operations $653 $626 $2,285 $2,151 === === ===== ===== GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Sept. 30, Sept. 30, 2004 Dec. 31, 2003 (Unaudited) 2003 (Unaudited) ---------- -------- ----------- ASSETS (dollars in millions) Cash and cash equivalents $37,589 $32,554 $39,184 Marketable securities 21,168 22,215 21,368 ------ ------ ------ Total cash and marketable securities 58,757 54,769 60,552 Finance receivables - net 189,763 174,731 161,160 Loans held for sale 16,786 19,609 19,931 Accounts and notes receivable (less allowances) 17,385 20,532 19,163 Inventories (less allowances) 12,035 10,960 10,936 Assets of discontinued operations - - 19,687 Deferred income taxes 27,219 27,190 38,896 Net equipment on operating leases - (less accumulated depreciation) 33,483 32,790 32,564 Equity in net assets of nonconsolidated affiliates 6,637 6,032 5,780 Property - net 37,432 38,211 37,637 Intangible assets - net 4,732 4,760 10,952 Other assets 58,216 58,923 17,264 ------- ------- ------- Total assets $462,445 $448,507 $434,522 ======= ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable (principally trade) $26,929 $25,422 $25,052 Notes and loans payable 284,071 271,756 257,647 Liabilities of discontinued operations - - 8,985 Postretirement benefits other than pensions 31,948 36,292 35,841 Pensions 7,824 8,024 19,025 Deferred income taxes 6,181 7,508 6,467 Accrued expenses and other liabilities 77,255 73,930 69,996 -------- -------- -------- Total liabilities 434,208 422,932 423,013 Minority interests 369 307 740 Stockholders' equity $1-2/3 par value common stock (outstanding, 564,804,464; 561,997,725; and 560,741,759 shares) 941 937 935 Class H common stock (outstanding, 1,108,731,138 shares at September 30, 2003) - - 111 Capital surplus (principally additional paid-in capital) 15,209 15,185 22,884 Retained earnings 14,966 12,752 12,000 ------ ------ ------ Subtotal 31,116 28,874 35,930 Accumulated foreign currency translation adjustments (1,678) (1,815) (2,099) Net unrealized gain (loss) on derivatives 215 51 (130) Net unrealized gains on securities 697 618 515 Minimum pension liability adjustment (2,482) (2,460) (23,447) -------- -------- ------ Accumulated other comprehensive loss (3,248) (3,606) (25,161) -------- -------- ------ Total stockholders' equity 27,868 25,268 10,769 -------- -------- -------- Total liabilities and stockholders' equity $462,445 $448,507 $434,522 ======= ======= ======= GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS Sept. 30, Sept. 30, 2004 Dec. 31, 2003 (Unaudited) 2003 (Unaudited) ---------- -------- ----------- ASSETS (dollars in millions) Automotive and Other Operations Cash and cash equivalents $12,984 $14,424 $17,860 Marketable securities 7,969 9,067 8,022 ------- ------- ------- Total cash and marketable securities 20,953 23,491 25,882 Accounts and notes receivable (less allowances 6,542 5,380 5,777 Inventories (less allowances) 12,035 10,960 10,936 Assets of discontinued operations - - 19,687 Net equipment on operating leases (less 6,764 7,173 6,401 accumulated depreciation) Deferred income taxes and other current assets 10,813 10,851 9,796 ------ ------ ------- Total current assets 57,107 57,855 78,479 Equity in net assets of nonconsolidated affiliates 6,637 6,032 5,780 Property - net 35,583 36,071 35,640 Intangible assets - net 1,445 1,479 7,696 Deferred income taxes 18,086 18,086 30,353 Other assets 41,251 42,262 1,807 ------- ------- ------- Total Automotive and Other Operations assets 160,109 161,785 159,755 Financing and Insurance Operations Cash and cash equivalents 24,605 18,130 21,324 Investments in securities 13,199 13,148 13,346 Finance receivables - net 189,763 174,731 161,160 Loans held for sale 16,786 19,609 19,931 Net equipment on operating leases (less accumulated depreciation) 26,719 25,617 26,163 Other assets 31,264 35,487 32,843 Net receivable from Automotive and Other Operations 2,548 1,492 1,735 ------- -------- -------- Total Financing and Insurance Operations assets 304,884 288,214 276,502 ------- ------- ------- Total assets $464,993 $449,999 $436,257 ======= ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Automotive and Other Operations Accounts payable (principally trade) $23,287 $21,542 $20,540 Loans payable 2,540 2,813 2,154 Liabilities of discontinued operations - - 8,985 Accrued expenses 45,330 45,417 41,056 Net payable to Financing and Insurance Operations 2,548 1,492 1,735 ------- ------- ------- Total current liabilities 73,705 71,264 74,470 Long-term debt 30,065 29,593 29,548 Postretirement benefits other than pensions 27,996 32,285 31,917 Pensions 7,755 7,952 18,968 Other liabilities and deferred income taxes 15,402 15,567 14,178 -------- ------- ------- Total Automotive and Other Operations liabilities 154,923 156,661 169,081 Financing and Insurance Operations Accounts payable 3,642 3,880 4,512 Debt 251,466 239,350 225,945 Other liabilities and deferred income taxes 26,725 24,533 25,210 ------- -------- -------- Total Financing and Insurance Operations liabilities 281,833 267,763 255,667 ------- ------- ------- Total liabilities 436,756 424,424 424,748 Minority interests 369 307 740 Total stockholders' equity 27,868 25,268 10,769 ------- -------- -------- Total liabilities and stockholders' equity 464,993 $449,999 $436,257 ======= ======= ======= GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, ----------------- 2004 2003 ---- ---- (dollars in millions) Net cash provided by operating activities $11,813 $7,287 Cash flows from investing activities Expenditures for property (4,762) (4,935) Investments in marketable securities - acquisitions (10,321) (12,600) Investments in marketable securities - liquidations 10,496 7,997 Net originations and purchases of mortgage servicing rights (1,151) (1,988) Increase in finance receivables (93,163) (103,811) Proceeds from sales of finance receivables 79,430 76,177 Proceeds from sale of business unit - 1,076 Operating leases - acquisitions (10,364) (8,719) Operating leases - liquidations 5,637 7,801 Investments in companies, net of cash acquired (85) (187) Other 370 42 ------- -------- Net cash used in investing activities (23,913) (39,147) Cash flows from financing activities Net increase in loans payable 1,559 (238) Long-term debt - borrowings 57,492 77,505 Long-term debt - repayments (44,810) (27,815) Cash dividends paid to stockholders (847) (840) Other 3,763 1,606 ------ ----- Net cash provided by financing activities 17,157 50,218 Effect of exchange rate changes on cash and cash equivalents (22) 506 ------- -------- Net increase (decrease) in cash and cash equivalents 5,035 18,864 Cash and cash equivalents at beginning of the period 32,554 20,320 ------ ------ Cash and cash equivalents at end of the period $37,589 $39,184 ====== ====== GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Automotive Financing and and Other Insurance ------------- ------------- Nine Months Ended September 30, -------------------------------- 2004 2003 2004 2003 ---- ---- ---- ---- (dollars in millions) Net cash provided by operating activities $1,273 $242 $10,540 $7,045 Cash flows from investing activities Expenditures for property (4,502) (4,467) (260) (468) Investments in marketable securities - acquisitions (2,218) (7,033) (8,103) (5,567) Investments in marketable securities - liquidations 3,316 1,185 7,180 6,812 Net change in mortgage servicing rights - - (1,151) (1,988) Increase in finance receivables - - (93,163)(103,811) Proceeds from sales of finance receivables - - 79,430 76,177 Proceeds from sale of business unit - 1,076 - - Operating leases - acquisitions - - (10,364) (8,719) Operating leases - liquidations - - 5,637 7,801 Investments in companies, net of cash acquired (94) (45) 9 (142) Other 348 266 22 (224) ----- ------ ------- ------- Net cash used in investing activities (3,150) (9,018) (20,763) (30,129) Cash flows from financing activities Net increase (decrease) in loans payable (498) (388) 2,057 150 Long-term debt - borrowings 845 14,702 56,647 62,803 Long-term debt - repayments (72) (19) (44,738) (27,796) Cash dividends paid to stockholders (847) (840) - - Other - - 3,763 1,606 ----- ------ ------ ----- Net cash provided by (used in) financing activities (572) 13,455 17,729 36,763 Effect of exchange rate changes on cash and cash equivalents (47) 373 25 133 Net transactions with Automotive/Financing Operations 1,056 646 (1,056) (646) ----- ------ ------- ------ Net increase (decrease) in cash and cash equivalents (1,440) 5,698 6,475 13,166 Cash and cash equivalents at beginning of the period 14,424 12,162 18,130 8,158 ------ ------ ------ ------- Cash and cash equivalents at end of the period $12,984 $17,860 $24,605 $21,324 ====== ====== ======= ====== SOURCE General Motors Corporation -0- 10/14/2004 P /NOTE TO EDITORS: For additional media information, visit http://media.gm.com ./ /CONTACT: Jerry Dubrowski, +1-212-418-6261, jerry.dubrowski@gm.com or Mark Tanner, +1-313-665-3146, mark.tanner@gm.com , both of General Motors Corporation/ /Web site: http://media.gm.com http://www.gm.com / (GM)

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