GM Reports First Quarter 2010 Results


    
    GM achieves net income of $0.9 billion and EPS of $1.66




    
</pre>
<p><span class="xn-location">DETROIT</span>, <span class="xn-chron">May 17</span> /CNW/ -- General Motors Company today announced its first quarter 2010 results, marked by revenue of <span class="xn-money">$31.5 billion</span> and operating income of <span class="xn-money">$1.2 billion</span>.  Net income attributable to common stockholders was <span class="xn-money">$0.9 billion</span>, resulting in earnings per share on a diluted basis of <span class="xn-money">$1.66</span>.</p>
<p/>
<p>GM's first quarter adjusted earnings before interest and tax (EBIT) was <span class="xn-money">$1.7 billion</span>, after adjusting for the favorable impact of the sale of the Saab brand.</p>
<p/>
<p>GM <span class="xn-location">North America</span> had EBIT in the first quarter 2010 of <span class="xn-money">$1.2 billion</span>, up from a loss of <span class="xn-money">$3.4 billion</span> in the fourth quarter 2009.  GM <span class="xn-location">Europe</span> had a loss before interest and taxes of <span class="xn-money">$0.5 billion</span>; an improvement of <span class="xn-money">$0.3 billion</span> from the fourth quarter.  GM International Operations posted EBIT of <span class="xn-money">$1.2 billion</span>, up <span class="xn-money">$0.5 billion</span> from the fourth quarter.</p>
<p/>
<p>Cash flow from operating activities was <span class="xn-money">$1.7 billion</span> and after adjusting for capital expenditures of <span class="xn-money">$0.7 billion</span>, free cash flow was <span class="xn-money">$1.0 billion</span>.  GM ended the first quarter with <span class="xn-money">$35.7 billion</span> in cash and marketable securities, including funds in escrow.</p>
<p/>
<p>"We're pleased with our first quarter performance, in particular achieving profitability," said <span class="xn-person">Chris Liddell</span>, vice chairman and chief financial officer. "In <span class="xn-location">North America</span> we are adding production to keep up with strong demand for new products in our four brands. We're also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet.  These are all important steps as we lay the foundation for a successful GM."</p>
<pre>
    

    Forward-Looking Statements:
    
</pre>
<p>In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" 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. Among other items, such factors might include:  our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planning significant investment in new technology; our ability to realize successful vehicle applications of new technology; and our ability to comply with the continuing requirements related to U.S. and other government support.</p>
<p/>
<p>GM's most recent annual report on Form 10-K and quarterly report on Form 10-Q provides information about these and other factors, which we may revise or supplement in future reports to the SEC.</p>
<pre>
    


    
</pre>
<p> </p>
<p> </p>
<p>                                   Exhibit 1</p>
<p> </p>
<pre>
    
                        General Motors Company and Subsidiaries
                                 Supplemental Material
    
</pre>
<p> </p>
<pre>
    
                                      (Unaudited)


    
</pre>
<p>The accompanying tables and charts for securities analysts include earnings (loss) before interest and taxes (EBIT), adjusted EBIT and free cash flow which are not prepared in accordance with Accounting Principles Generally Accepted in the <span class="xn-location">United States</span> of America (U.S. GAAP) and have not been audited or reviewed by GM's independent auditors. EBIT, adjusted EBIT and free cash flow are considered non-GAAP financial measures.</p>
<p/>
<p>Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM's operating results because they exclude amounts that management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. Management believes these measures allow it to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether GM's plan to return to profitability is on target. Accordingly, GM believes these non-GAAP financial measures are useful in allowing for greater transparency of GM's core operations and they are therefore used by management in its financial and operational decision-making.</p>
<p/>
<p>While management believes that these non-GAAP financial measures provide useful information, they are not operating measures under U.S. GAAP and there are limitations associated with their use. GM's calculation of these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP financial measures has limitations and should not be considered in isolation from, or as a substitute for, other measures such as Net income (loss) or Net income (loss) attributable to common stockholders. Due to these limitations, these non-GAAP financial measures are used as a supplement to U.S. GAAP measures.</p>
<p/>
<p>The following table summarizes the reconciliation of EBIT to its most comparable U.S. GAAP measure (dollars in millions):</p>
<pre>
    


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                  Successor
                                  ---------
                        Three      Three      July 10,
                        Months     Months       2009
                       Ended       Ended      Through
                        March    December
                          31,        31,     September
                          2010      2009      30, 2009
                       ------    ---------   ----------
    Operating
     segments
      GMNA(a)           $1,218     $(3,443)     $(1,377)
      GMIO(a)            1,194         738          460
      GME(a)              (506)       (814)           9
                          ----        ----          ---
      Total operating
       segments          1,906      (3,519)        (908)
    Corporate and
     eliminations          (82)       (527)         167
                           ---        ----          ---
    EBIT                 1,824      (4,046)        (741)
    Interest income         90          75          109
    Interest expense       337         329          365
    Income tax
     expense
     (benefit)             509        (861)        (139)
                           ---        ----         ----
    Net income (loss)
     attributable to
     stockholders       $1,068     $(3,439)       $(858)
                        ======     =======        =====

    __________

    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
         Interest and income taxes are recorded centrally in Corporate;
         therefore, there are no reconciling items for GM's operating segments
     (a) between EBIT and Net income (loss) attributable to stockholders.



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                        General Motors Company and Subsidiaries
                                 Supplemental Material
    
</pre>
<p> </p>
<pre>
    
                                      (Unaudited)


    
</pre>
<p>The following tables summarize the reconciliation of adjusted EBIT to EBIT and free cash flow to Net cash provided by (used in) operating activities (dollars in millions):</p>
<p/>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                                 Successor
                               Three Months  Three Months    July 10, 2009
                                   Ended         Ended          Through
                                 March 31,   December 31,    September 30,
                                    2010          2009            2009
                                ----------  -------------   --------------
    Adjusted EBIT                    $1,701          $(954)           $(631)
    Adjustments                         123         (3,092)            (110)
                                        ---         ------             ----
    EBIT                             $1,824        $(4,046)           $(741)
                                     ======        =======            =====
    
</pre>
<p> </p>
<pre>
    
    Free Cash Flow                     $991        $(2,919)          $1,976
    Capital expenditures                755          1,033              881
                                        ---          -----              ---
    Net cash provided by (used
     in) operating activities        $1,746        $(1,886)          $2,857
                                     ======        =======           ======


    In the three months ended March 31, 2010 Adjustments included the
following:

    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
       Gain of $123 million as a result of the sale of Saab to Spyker Cars
     o NV.


    In the three months ended December 31, 2009 Adjustments included the
following:

    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
       Settlement loss of $2.6 billion related to the termination of GM's UAW
       hourly retiree medical plan and Mitigation Plan, under which GM
       agreed that an independent VEBA would be formed to pay certain
     o healthcare costs of UAW hourly retirees and their beneficiaries;
       Impairment charge of $270 million related to GM's investment in GMAC
     o common stock;
       Charges of $150 million related to the settlement of existing Delphi
       obligations upon consummation of the Delphi Master Disposition
       Agreement and GM's agreement to fund the wind-down costs of certain
     o Delphi facilities; and
       Loss on extinguishment of debt of $101 million related to the
       repayment of secured long-term debt of $400 million (in connection
       with the purchase of the remaining noncontrolling interest in CAMI
     o Automotive, Inc.).


    
</pre>
<p>In the period <span class="xn-chron">July 10, 2009</span> through <span class="xn-chron">September 30, 2009</span> Adjustments included the following:</p>
<p/>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
     o Charges of $110 million to record reserves against advances to Delphi.



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                        General Motors Company and Subsidiaries
                                 Supplemental Material
    
</pre>
<p> </p>
<pre>
    
                                      (Unaudited)


    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                           Successor  Predecessor
                                           ---------  -----------
                                              Three       Three
                                             Months      Months
                                             Ended       Ended
                                           March 31,   March 31,
                                              2010        2009
                                          ----------  ----------
    
</pre>
<p> </p>
<pre>
    
    Worldwide Production Volume (units in
     thousands)(a)
      GMNA - Cars                                 244         116
      GMNA - Trucks                               424         255
                                                  ---         ---
      Total GMNA                                  668         371
      GME                                         357         267
      GMIO (b)(c)                               1,060         692
                                                -----         ---
      Total Worldwide                           2,085       1,330
                                                =====       =====

    __________

    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
         Production volume represents the number of vehicles manufactured by
         GM's and Old GM's assembly facilities and also includes vehicles
     (a) produced by certain joint ventures.
         Includes Shanghai General Motors Co., Ltd. (SGM), SAIC-GM Wuling
         Automobile Co., Ltd. (SGMW), FAW-GM Light Duty Commercial Vehicle
         Co., Ltd. (FAW-GM) and SAIC GM Investment Ltd. (HKJV) joint venture
     (b) production.
         Ownership of 34% in SGMW and 50% in FAW-GM, under the joint venture
         agreements, allows for significant rights as a member as well as the
         contractual right to report SGMW and FAW-GM production volume in
         China. These entities are not consolidated for financial reporting
         purposes. Income and losses related to these entities are recorded in
     (c) Equity income, net of tax.


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                        General Motors Company and Subsidiaries
                                 Supplemental Material
    
</pre>
<p> </p>
<pre>
    
                                      (Unaudited)


    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                       Successor  Predecessor
                                       ---------  -----------
                                          Three       Three
                                         Months      Months
                                         Ended       Ended
                                       March 31,   March 31,
                                          2010        2009
                                      ----------  ----------
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Vehicle Unit Deliveries (units in
     thousands)(a)(b)(c)
      United States
       Chevrolet - Cars                       156          93
       Chevrolet - Trucks                     182         154
       Cadillac                                29          24
       Buick                                   32          21
       GMC                                     69          54
       Other                                    8          67
                                              ---         ---
       Total United States                    477         413
       Canada, Mexico and Other                86          88
                                              ---         ---
       Total GMNA(d)                          563         501
                                              ---         ---
      GME
       Opel/Vauxhall                          295         297
       Chevrolet                              107         100
       Other                                    3          11
                                              ---         ---
       Total GME(e)                           405         407
                                              ---         ---
      GMIO
       Chevrolet                              455         324
       Buick                                  122          82
       GM Daewoo                               28          19
       Holden                                  36          29
       Wuling                                 334         231
       FAW-GM                                  27           -
       Cadillac                                 4           2
       Other                                   23          22
                                              ---         ---
       Total GMIO(e)(f)(g)                  1,030         709
                                            -----         ---
      Total Worldwide                       1,998       1,617
                                            =====       =====

    __________

    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
    (a)  Includes HUMMER, Saturn and Pontiac vehicle sales data.
    (b)  Includes Saab vehicle sales data through February 2010.
    (c)  Vehicle sales data may include rounding differences.
    (d)  Vehicle sales represent sales to the ultimate customer.
          Vehicle sales primarily represent estimated sales to the
    (e)   ultimate customer.
    (f)  Includes SGM, SGMW, FAW-GM and HKJV joint venture sales.
          Ownership of 34% in SGMW and 50% in FAW-GM under the joint
          venture agreements allows for significant rights as a member
          as well as contractual rights to report SGMW and FAW-GM
          joint venture vehicle sales in China as a part of global
          market share. These entities are not consolidated for
          financial reporting purposes. Income and losses related to
    (g)   these entities are recorded in Equity income, net of tax.



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                        General Motors Company and Subsidiaries
                                 Supplemental Material
    
</pre>
<p> </p>
<pre>
    
                                      (Unaudited)


    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                          Successor   Predecessor
                                          ---------   -----------
                                             Three        Three
                                            Months       Months
                                            Ended        Ended
                                          March 31,    March 31,
                                             2010         2009
                                         ----------   ----------
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Market Share(a)
      United States - Cars                      14.8%        15.3%
      United States - Trucks                    22.0%        21.3%
      Total United States                       18.4%        18.4%
      Total GMNA(b)                             17.8%        18.0%
      Total GME(c)                               8.5%         9.0%
      Total GMIO(c)(d)(e)                       10.3%        10.0%
      Total Worldwide                           11.2%        11.2%
    
</pre>
<p> </p>
<pre>
    
    U.S. Retail/Fleet Mix
      % Fleet Sales - Cars                      40.6%        19.9%
      % Fleet Sales - Trucks                    24.5%        15.2%
      Total Vehicles                            30.9%        17.1%
    
</pre>
<p> </p>
<pre>
    
    GMNA Capacity Utilization(f)                84.8%        37.7%

    __________

    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
           Includes HUMMER, Saab, Saturn and Pontiac vehicle
    (a)    sales data.
           Vehicle sales represent sales to the ultimate
    (b)    customer.
           Vehicle sales primarily represent estimated sales to
    (c)    the ultimate customer.
           Includes SGM, SGMW, FAW-GM and HKJV joint venture
    (d)    sales.
           Ownership of 34% in SGMW and 50% in FAW-GM, under
           the joint venture agreements, allows for significant
           rights as a member as well as the contractual right
           to report SGMW and FAW-GM joint venture vehicle
           sales in China as part of global market share. These
           entities are not consolidated for financial
           reporting purposes. Income and losses related to
           these entities are recorded in Equity income, net of
    (e)    tax.
    (f)   Two shift rated, annualized.


    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                           Successor     Predecessor
                                           ---------     -----------
                                            March 31,    December 31,
                                              2010           2009
                                           ----------   -------------
    Worldwide Employment (thousands)
      GMNA(a)                                      103            103
      GME(b)(c)                                     45             50
      GMIO(d)                                       57             62
                                                   ---            ---
      Total Worldwide                              205            215
                                                   ===            ===
    
</pre>
<p> </p>
<pre>
    
      United States - Salaried                      26             26
      United States - Hourly                        52             51

    __________


    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
           Beginning with the three months ended March 31, 2010
           substantially all of the 1,200 Corporate employees are
    (a)    included in GMNA.
           Decrease in GME primarily reflects reduction of 3,200
           employees due to the sale of Saab and reduction of 800
    (b)    hourly employees in Germany.
           GME hourly inactive employees are no longer included in
           GME's totals. GME hourly inactive employees excluded in
           the three months ended March 31, 2010 and 2009 were 2,300
    (c)    and 2,500 employees.
           Decrease in GMIO reflects a reduction of 2,400 employees
           due to the sale of GM's India Operations and the
           reclassification of 2,700 hourly employees to contract
    (d)    status.


    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                    Successor    Predecessor
                                    ---------    -----------
                                  Three Months  Three Months
                                      Ended         Ended
                                     March 31,     March 31,
                                       2010          2009
                                    ----------    ----------
     Worldwide Payroll (billions)          $3.0          $2.9



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                        General Motors Company and Subsidiaries
                    Condensed Consolidated Statements of Operations
    
</pre>
<p> </p>
<pre>
    
                        (In millions, except per share amounts)
                                      (Unaudited)


    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                                     Successor   Predecessor
                                                     ---------   -----------
                                                   Three Months  Three Months
                                                       Ended         Ended
                                                     March 31,     March 31,
                                                        2010          2009
                                                    ----------    ----------
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Net sales and revenue                               $31,476       $22,431
                                                        -------       -------
    Costs and expenses
      Cost of sales                                      27,591        24,611
      Selling, general and administrative expense         2,684         2,497
      Other expenses, net                                    46           985
                                                            ---           ---
      Total costs and expenses                           30,321        28,093
                                                         ------        ------
       Operating income (loss)                            1,155        (5,662)
    Equity in loss of GMAC                                    -          (500)
    Interest expense                                       (337)       (1,230)
    Interest income and other non-operating
     income, net                                            485           425
    Gain (loss) on extinguishment of debt                    (1)          906
                                                            ---           ---
    Income (loss) before income taxes and equity
     income                                               1,302        (6,061)
    Income tax expense (benefit)                            509          (114)
    Equity income, net of tax                               403            48
                                                            ---           ---
    Net income (loss)                                     1,196        (5,899)
    Less: Net income attributable to
     noncontrolling interests                               128            76
                                                            ---           ---
    Net income (loss) attributable to
     stockholders                                         1,068        (5,975)
    Less: Cumulative dividends on preferred
     stock                                                  203             -
                                                            ---           ---
    Net income (loss) attributable to common
     stockholders                                          $865       $(5,975)
                                                           ====       =======
    Earnings (loss) per share
    Basic
    Net income (loss) attributable to common
     stockholders                                         $1.73        $(9.78)
    Weighted-average common shares outstanding              500           611
    Diluted
    Net income (loss) attributable to common
     stockholders                                         $1.66        $(9.78)
    Weighted-average common shares outstanding              522           611


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                        General Motors Company and Subsidiaries
                         Condensed Consolidated Balance Sheets
    
</pre>
<p> </p>
<pre>
    
                          (In millions, except share amounts)
                                      (Unaudited)



    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                Successor
                                  March
                                    31,     December
                                    2010    31, 2009
                                 ------     --------
                   ASSETS
    Current Assets
      Cash and cash
       equivalents                $23,310    $22,679
      Marketable securities           153        134
                                      ---        ---
      Total cash, cash
       equivalents and
       marketable securities       23,463     22,813
      Restricted cash              12,741     13,917
      Accounts and notes
       receivable (net of
       allowance of $188 and
       $250)                        8,694      7,518
      Inventories                  11,192     10,107
      Assets held for sale             60        388
      Equipment on operating
       leases, net                  2,319      2,727
      Other current assets and
       deferred income taxes        1,888      1,777
                                    -----      -----
      Total current assets         60,357     59,247
    Non-Current Assets
      Equity in net assets of
       nonconsolidated
       affiliates                   8,430      7,936
      Assets held for sale              -        530
      Property, net                18,432     18,687
      Goodwill                     30,487     30,672
      Intangible assets, net       13,690     14,547
      Other assets                  4,625      4,676
                                    -----      -----
      Total non-current
       assets                      75,664     77,048
                                   ------     ------
    Total Assets                 $136,021   $136,295
                                 ========   ========
           LIABILITIES AND EQUITY
    Current Liabilities
      Accounts payable
       (principally trade)        $20,450    $18,725
      Short-term debt and
       current portion of
       long-term debt
       (including debt at GM
       Daewoo of $1,308 at
       March 31, 2010)              8,773     10,221
      Liabilities held for
       sale                            60        355
      Accrued expenses
       (including derivative
       liabilities at GM
       Daewoo of $339 at March
       31, 2010)                   22,755     23,134
                                   ------     ------
      Total current
       liabilities                 52,038     52,435
    Non-Current Liabilities
      Long-term debt
       (including debt at GM
       Daewoo of $740 at March
       31, 2010)                    5,401      5,562
      Liabilities held for
       sale                             -        270
      Postretirement benefits
       other than pensions          8,794      8,708
      Pensions                     26,492     27,086
      Other liabilities and
       deferred income taxes       13,245     13,279
                                   ------     ------
      Total non-current
       liabilities                 53,932     54,905
                                   ------     ------
    Total Liabilities             105,970    107,340
    Commitments and
     contingencies                  6,998      6,998
    Preferred stock, $0.01 par value
     (1,000,000,000 shares
     authorized, 360,000,000 shares
     issued and outstanding (each
     with a $25.00 liquidation
     preference) at March 31, 2010
     and December 31, 2009)
    Equity
      Common stock, $0.01 par
       value (2,500,000,000
       shares authorized,
       500,000,000 shares
       issued and outstanding
       at March 31, 2010 and
       December 31, 2009)               5          5
      Capital surplus
       (principally additional
       paid-in capital)            24,050     24,050
      Accumulated deficit          (3,529)    (4,394)
      Accumulated other
       comprehensive income         1,713      1,588
                                    -----      -----
      Total stockholders'
       equity                      22,239     21,249
      Noncontrolling interests        814        708
                                      ---        ---
      Total equity                 23,053     21,957
                                   ------     ------
    Total Liabilities and
     Equity                      $136,021   $136,295
                                 ========   ========





    

For further information: For further information: Renee Rashid-Merem, +1-313-665-3128, Cell, +1-313-701-8560, renee.rashid-merem@gm.com, or Randy Arickx, +1-313-667-0006, Cell, +1-313-268-7070, randy.c.arickx@gm.com, both of GM Web Site: http://media.gm.com

Organization Profile

General Motors

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890