General Motors released a statement about its income for the 2012 calendar year today, reporting a net income of $4.9 billion and an earnings before interest and tax (EBIT) figure of some $7.9 billion. Per share that breaks down to $2.92, versus net income of $4.58 per share last year. These numbers are in contrast to the automaker's revenue figures, which rose in 2012 to $152.3 billion from $150.3 billion in 2011.

GM calls out the discrepancy of revenue to income, saying that it is "primarily" due to "unfavorable special items," as well as hits taken in the slumping European markets.

The special items portion is where the story gets a little bit confusing. The company says that $0.5 billion worth of special items negatively impacted income this year. Numbered among those items are -$26.2 billon non-cash good will impairment charge (this occurs when a company buys something large for more than its "book value"), $2.2 billion added to the US salaried pension plan, and a -$5.2 billion "non-cash impairment" of GM Europe Assets.

Even with that half-billion accounted for the remaining $2.2 billion difference in this year's income versus 2011 could speak to operating costs that are trending in the wrong direction.

Still, CEO Dan Akerson is bullish about the coming year saying, "Our priorities will be executing flawless new vehicle launches, controlling costs and delivering more vehicles to our customers at outstanding value." Feel free to scroll down to take in the whole of GM's rather impenetrable press release.
Show full PR text
GM Reports 2012 Net Income of $4.9 Billion
Full-year EBIT-adjusted of $7.9 billion


2013-02-14

- Company posts third consecutive year of strong earnings

- Fourth quarter net income of $0.9 billion, up from $0.5 billion last year

- EBIT-adjusted of $1.2 billion in the fourth quarter, up from $1.1 billion last year

DETROIT – General Motors Co. (NYSE: GM) today announced 2012 calendar-year net income attributable to common stockholders of $4.9 billion, or $2.92 per fully diluted share, down from $7.6 billion, or $4.58 per fully diluted share in 2011, due primarily to unfavorable special items.

Special items during the calendar year impacted full-year net income to common stockholders unfavorably, $(0.5) billion, or $(0.32) per share, compared to a favorable $1.2 billion impact in 2011, or $0.70 per share.

Revenue increased 1 percent to $152.3 billion, compared with $150.3 billion in 2011. Full-year earnings before interest and tax (EBIT) adjusted was $7.9 billion, compared with $8.3 billion in 2011. Full-year EBIT-adjusted for 2012 includes the impact of restructuring charges of $(0.4) billion.

"We recorded another solid year in 2012 as we grew the business, delivered a third straight year of profitability and took significant actions to put the company on a solid path for future growth," said Dan Akerson, chairman and CEO. "This year our priorities will be executing flawless new vehicle launches, controlling costs and delivering more vehicles to our customers at outstanding value."

Overview (in billions except for per share amounts)

Q4 2011

Q4 2012

Full-year 2011

Full-year 2012

Revenue

$38.0

$39.3

$150.3

$152.3

Net income attributable to common stockholders

$0.5

$0.9

$7.6

$4.9

Earnings per share
(EPS) fully diluted

$0.28

$0.54

$4.58

$2.92

Impact of special items on EPS fully diluted

$(0.11)

$0.06

$0.70

$(0.32)

EBIT-adjusted

$1.1

$1.2

$8.3

$7.9

Automotive net cash flow from operating activities

$1.2

$0.5

$7.4

$9.6

Adjusted automotive
free cash flow

($0.2)

$1.1

$3.0

$4.3


Revenue in the fourth quarter of 2012 increased 3 percent to $39.3 billion, compared with the fourth quarter of 2011. GM's fourth quarter 2012 net income attributable to common stockholders was $0.9 billion, or $0.54 per fully diluted share, including a net gain from special items of $0.1 billion or $0.06 per fully diluted share.

In the fourth quarter of 2011, GM's net income attributable to common stockholders was $0.5 billion, or $0.28 per fully diluted share, including a net loss from special items of $(0.2) billion, or $(0.11) per fully diluted share.

EBIT-adjusted was $1.2 billion in the fourth quarter of 2012, compared with $1.1 billion in the fourth quarter of 2011. Fourth quarter EBIT-adjusted for 2012 includes the impact of restructuring charges of $(0.2) billion.

GM's fourth quarter 2012 special items impact to net income of $0.1 billion includes a $34.9 billion non-cash benefit from the release of the majority of the company's valuation allowances on U.S. and Canada deferred tax assets and an associated $(26.2) billion non-cash goodwill impairment charge; a $(5.2) billion non-cash impairment of GM Europe long-lived assets; and a $(2.2) billion charge related to U.S. salaried pension plan actions announced earlier this year, among other smaller items.

The non-cash impairment of GM Europe long-lived assets does not reflect any change to the company's objective to break even in its European operations by mid-decade.

Segment Results

GM North America (GMNA) reported EBIT-adjusted of $1.4 billion in the fourth quarter of 2012 compared with $1.5 billion in 2011. Full-year EBIT-adjusted was $7.0 billion in 2012 compared to $7.2 billion in 2011. Based on GMNA's 2012 financial performance, the company will pay profit sharing of up to $6,750 to approximately 49,000 eligible GM U.S. hourly employees.
GM Europe (GME) reported EBIT-adjusted of $(0.7) billion in the fourth quarter of 2012, compared to $(0.6) billion in 2011. Full-year EBIT-adjusted was $(1.8) billion in 2012, compared with $(0.7) billion in 2011.

GM International Operations (GMIO) reported EBIT-adjusted of $0.5 billion in the fourth quarter of 2012 compared with $0.4 billion in 2011. Full-year EBIT-adjusted was $2.2 billion in 2012 compared with $1.9 billion in 2011.

GM South America (GMSA) reported EBIT-adjusted of $0.1 billion in the fourth quarter of 2012, compared with $(0.2) billion in 2011. Full-year EBIT-adjusted was $0.3 billion in 2012 compared with EBIT-adjusted of $(0.1) billion in 2011.

GM Financial reported earnings before taxes (EBT) of $0.1 billion in the fourth quarter of 2012, compared with $0.2 billion in 2011. Full-year EBT was $0.7 billion, compared to $0.6 billion in 2011.

Cash Flow and Liquidity

For the fourth quarter of 2012, automotive cash flow from operating activities was $0.5 billion, compared to $1.2 billion in 2011. In the fourth quarter of 2012, adjusted automotive free cash flow was $1.1 billion, compared to $(0.2) billion in 2011. For the year, adjusted automotive free cash flow was $4.3 billion, compared to $3.0 billion a year ago.

GM ended 2012 with strong total automotive liquidity of $37.2 billion compared with $37.0 billion at year-end in 2011. Automotive cash and marketable securities was $26.1 billion at the end of 2012, compared with $31.6 billion a year earlier.

GM expects capital expenditures for 2013 to be similar to 2012.

U.S. Pension Update

GM's U.S. defined benefit pension plans earned asset returns of 11.6 percent in 2012 and ended the year 84 percent funded. The underfunded position stood at $13.1 billion, slightly improved from the prior year. As previously announced, during 2012 GM settled approximately $28 billion of its U.S. salaried pension liability through a combination of lump sum offers and annuitizations.

Under current economic conditions, GM expects no mandatory contributions to U.S. defined benefit pension plans for at least five years. While the company will continue to evaluate opportunities to make voluntary cash contributions, it has no current plans to do so in 2013.

"We're pleased with our fourth quarter results, as the business generated strong adjusted free cash flow and we took significant steps to strengthen our fortress balance sheet," said Dan Ammann, senior vice president and CFO. "Our aggressive vehicle launch cadence and focus on improving the topline, combined with rigorous cost discipline will help us continue to generate strong business results moving forward."


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    • 1 Second Ago
  • 48 Comments
      Kelly Lueth
      • 2 Years Ago
      Are you all serious? GM is building the best products in years. Do i have to name then all off to you? Not to mention all the new product coming. Your all haters. Get over it. Better yet test drive your preffered ride
        Jerry
        • 2 Years Ago
        @Kelly Lueth
        Have you driven a 2013 Malibu yet? If not, please do so and let us know if your opinion still holds.
          Kelly Lueth
          • 2 Years Ago
          @Jerry
          I agree with that. The malibu is much improved over the old one
          Titansfan1967
          • 2 Years Ago
          @Jerry
          Even consumer reports praises the Malibu. You get one editor from Forbes magazine calling the Malibu Eco as one of the worst cars and the whole line is terrible because of it. I want somebody to come and drive the new Malibu turbo.
          NPG MBR
          • 2 Years Ago
          @Jerry
          The only problem the new Malibu has is its exterior styling and Chevy is currenlty working on changing that. But I agree, this Malibu is much imporoved over the last model which was also a big step forward for Chevy.
        • 2 Years Ago
        @Kelly Lueth
        [blocked]
        whofan
        • 2 Years Ago
        @Kelly Lueth
        The Equinox is the only Chevorlet I like right now.
      Jason Krumvieda
      • 2 Years Ago
      Did he really say: "Our priorities will be executing flawless new vehicle launches" I don't think the Malibu, Spark and Silverado team got that memo.
        JGM038
        • 2 Years Ago
        @Jason Krumvieda
        Lol, I know really. Malibu "Hey lets launch the top model of this car, the one we expect less than 8 percent of buyers to purchase, MONTHS before the other models" Spark "Lets sell this but not tell anyone about it"
          merlot066
          • 2 Years Ago
          @JGM038
          I love the Spark but I had no clue that it even existed until I walked into a Chevy dealership in July for something completely unrelated.
        TCBRacing
        • 2 Years Ago
        @Jason Krumvieda
        He means flawless Quality not flawless Marketing. The Marketing guys got some work to do but the Quality and Engineering have been superb on everything lately. The ATS, XTS, Sonic and Verano have been great launches and great sellers as well.
          Alfonso T. Alvarez
          • 2 Years Ago
          @TCBRacing
          @ "Jerry one word" - WTH? Show us where the Malibu launch is flawed due to technical problems.
          Jerry
          • 2 Years Ago
          @TCBRacing
          One word, "Malibu"
          Bandit5317
          • 2 Years Ago
          @TCBRacing
          @jerry Autoblog seems to like the 2.5L Malibu. m.autoblog.com/2012/09/04/2013-chevrolet-malibu-2-5-first-drive-review/
        Jerry
        • 2 Years Ago
        @Jason Krumvieda
        He is clueless...
      • 2 Years Ago
      [blocked]
        riserburn99andre
        • 2 Years Ago
        Isn't developing an engine for ONE vehicle wasteful? So how is the Silverado mediocre? How many have you sat in, test driven, seen fuel economy on and tow ratings? So GM going after livery service and an older demographic with the XTS and a HUGE money maker luxury compact market with the ATS was a bad decision? Oh btw the ATS platform will also be the Camaro and CTS platform so the costs will be minimal. Why not make the ELR? They will only make money on it and give Cadillac an EREV they need really bad for "green" cred since everyone else is jumping on the bandwagon
        Avinash Machado
        • 2 Years Ago
        Yawn.
      Deric Caron
      • 2 Years Ago
      Well obviously, weaning off from the government teats is going to be difficult, but they only had to survive for elections anyway.
      Ashton
      • 2 Years Ago
      Don't worry, if they go in the red, we can always bail them out again! YAY Death to Capitalism! s/
      Rob
      • 2 Years Ago
      ...and the slide continues.
      AngeloD
      • 2 Years Ago
      Dan Akerson is going to pilot this baby right into a cliff face. Why hasn\'t he been fired yet?
      RGT881
      • 2 Years Ago
      And yet the investors shrugged off these news as the GM stock did absolutely NOTHING, which is what essentially GM is, a big fat dome of nothingness.
        ELG
        • 2 Years Ago
        @RGT881
        $2.92 EPS is very nice, but the rest of the news was kind of bad. like increasing operating costs (now that the union parasites have their suckers back) so its a pull/push in the markets with the result of a draw
      r_r
      • 2 Years Ago
      26.2B for paying some more than they should? That sounds like corruption.
      Oolly
      • 2 Years Ago
      Profit dropping, while the market is growing. That is not a good sign. GM's biggest profit maker, trucks, looks to be a Malibu repeat. After a long awaited redesign, at this point, they still appear to be behind the competition. Ram is growing, and Ford is holding onto its solid lead. If you can't grow profit in global record vehicle sales after shaking $94billion is debt, and getting $50billion cash infusion, there is still a significant problem.
      John Riecke
      • 2 Years Ago
      $5B in profit is still *profit*, and not a small amount.
      protovici
      • 2 Years Ago
      Old habits die hard or don't even die period. Same issues from pre bailout days. Expanding market presence, yet margins shrink due to expensive overhead. Unions and bad management will kill this organization again. Not to mention a controlling government investor. Wouldn't be nice to see one of our biggest automakers run like a well oiled machine?! Good luck General.
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