With the third quarter of 2013 wrapping up, General Motors has published its quarterly earnings, announcing a net income of $700 million, a significant drop from Q3 2012's $1.5 billion in net income. The drop is being blamed on a $900 million loss from "special items," $800 million of which was part of a 120-million share repurchase of preferred stock. GM also lost $500 million on tax expenses.
Despite the drop in income, net revenue was up $1.4 billion year-over-year, from $37.6 billion in Q3 of 2012 to $39 billion in Q3 2013. Earnings before interest and tax climbed to $2.6 billion from $2.3 billion. "We made gains in the third quarter as we improved our North American margins and increased our global share on the strength of our Chevrolet brand," Dan Akerson, GM's chairman and CEO, said.
Globally, GM reported a smaller drop in earnings before interest and tax tax in Europe, losing $300 million less than in the same period of 2012. South American EBIT was up $100 million from Q3 of 2012, to $300 million, while GM's International Operations saw a $500 million decline in third quarter EBIT, from $800 million to $300 million. Have a look below for the entire press release from GM.
Despite the drop in income, net revenue was up $1.4 billion year-over-year, from $37.6 billion in Q3 of 2012 to $39 billion in Q3 2013. Earnings before interest and tax climbed to $2.6 billion from $2.3 billion. "We made gains in the third quarter as we improved our North American margins and increased our global share on the strength of our Chevrolet brand," Dan Akerson, GM's chairman and CEO, said.
Globally, GM reported a smaller drop in earnings before interest and tax tax in Europe, losing $300 million less than in the same period of 2012. South American EBIT was up $100 million from Q3 of 2012, to $300 million, while GM's International Operations saw a $500 million decline in third quarter EBIT, from $800 million to $300 million. Have a look below for the entire press release from GM.
GM Reports Third Quarter Net Income of $0.7 Billion
EPS of $0.45 includes net loss from special items of $0.51 per share
EBIT-adjusted of $2.6 billion, up from $2.3 billion in the third quarter of 2012
DETROIT – General Motors Co. (NYSE: GM) today announced third quarter net income to common stockholders of $0.7 billion or $0.45 per fully diluted share, down from $1.5 billion or $0.89 per fully diluted share a year ago. Improvement in operating performance during the quarter was more than offset by a net loss from special items and incremental tax expense.
Net income to common includes a net loss from special items of $0.9 billion or $0.51 per fully diluted share, including $0.8 billion related to the repurchase of 120 million shares of Preferred Series A Stock. Results were also impacted by incremental tax expense of $0.5 billion or $0.29 per fully diluted share in the quarter compared to the third quarter of 2012.
Net revenue during the quarter was $39.0 billion compared to $37.6 billion in the third quarter of 2012. Earnings before interest and tax (EBIT) adjusted was $2.6 billion compared to $2.3 billion in the third quarter of 2012.
"We made gains in the third quarter as we improved our North American margins and increased our global share on the strength of our Chevrolet brand," said Dan Akerson, GM chairman and CEO. "Our efforts to build great cars and trucks and deliver solid financial results were recognized this quarter by Moody's investment grade rating."
GM Results Overview (in billions except for per share amounts)
Segment Results
GM North America reported EBIT-adjusted of $2.2 billion compared with $1.7 billion in the third quarter of 2012.
GM Europe reported EBIT-adjusted of $(0.2) billion compared with $(0.5) billion in the third quarter of 2012.
GM International Operations reported EBIT-adjusted of $0.3 billion compared with $0.8 billion in the third quarter of 2012.
GM South America reported EBIT-adjusted of $0.3 billion compared with EBIT-adjusted of $0.2 billion in the third quarter of 2012.
GM Financial earnings before tax was $0.2 billion for the quarter compared to $0.2 billion in the third quarter of 2012.
Cash Flow and Liquidity
For the quarter automotive cash flow from operating activities was $3.3 billion and adjusted automotive free cash flow was $1.3 billion. GM ended the quarter with very strong total automotive liquidity of $37.3 billion. Automotive cash and marketable securities was $26.8 billion compared with $24.2 billion for the second quarter of 2013.
"During the quarter strong demand for new vehicles like the Cadillac ATS, Chevrolet Onix and the all-new Chevrolet Silverado helped boost our top-line," said Dan Ammann, GM executive vice president and CFO. "We also further strengthened our fortress balance sheet and reduced our cost of capital through our $4.5 billion refinancing of high cost obligations."
About General Motors Co.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.
EPS of $0.45 includes net loss from special items of $0.51 per share
EBIT-adjusted of $2.6 billion, up from $2.3 billion in the third quarter of 2012
DETROIT – General Motors Co. (NYSE: GM) today announced third quarter net income to common stockholders of $0.7 billion or $0.45 per fully diluted share, down from $1.5 billion or $0.89 per fully diluted share a year ago. Improvement in operating performance during the quarter was more than offset by a net loss from special items and incremental tax expense.
Net income to common includes a net loss from special items of $0.9 billion or $0.51 per fully diluted share, including $0.8 billion related to the repurchase of 120 million shares of Preferred Series A Stock. Results were also impacted by incremental tax expense of $0.5 billion or $0.29 per fully diluted share in the quarter compared to the third quarter of 2012.
Net revenue during the quarter was $39.0 billion compared to $37.6 billion in the third quarter of 2012. Earnings before interest and tax (EBIT) adjusted was $2.6 billion compared to $2.3 billion in the third quarter of 2012.
"We made gains in the third quarter as we improved our North American margins and increased our global share on the strength of our Chevrolet brand," said Dan Akerson, GM chairman and CEO. "Our efforts to build great cars and trucks and deliver solid financial results were recognized this quarter by Moody's investment grade rating."
GM Results Overview (in billions except for per share amounts)
| Q3 2013 | Q3 2012 | |
| Revenue | $39.0 | $37.6 |
| Net income attributable to common stockholders | $0.7 | $1.5 |
| Earnings per share (EPS) fully diluted | $0.45 | $0.89 |
| Impact of special items on EPS fully diluted | $(0.51) | $(0.04) |
| EBIT-adjusted | $2.6 | $2.3 |
| Automotive net cash flow from operating activities | $3.3 | $3.1 |
| Adjusted automotive free cash flow | $1.3 | $1.2 |
Segment Results
GM North America reported EBIT-adjusted of $2.2 billion compared with $1.7 billion in the third quarter of 2012.
GM Europe reported EBIT-adjusted of $(0.2) billion compared with $(0.5) billion in the third quarter of 2012.
GM International Operations reported EBIT-adjusted of $0.3 billion compared with $0.8 billion in the third quarter of 2012.
GM South America reported EBIT-adjusted of $0.3 billion compared with EBIT-adjusted of $0.2 billion in the third quarter of 2012.
GM Financial earnings before tax was $0.2 billion for the quarter compared to $0.2 billion in the third quarter of 2012.
Cash Flow and Liquidity
For the quarter automotive cash flow from operating activities was $3.3 billion and adjusted automotive free cash flow was $1.3 billion. GM ended the quarter with very strong total automotive liquidity of $37.3 billion. Automotive cash and marketable securities was $26.8 billion compared with $24.2 billion for the second quarter of 2013.
"During the quarter strong demand for new vehicles like the Cadillac ATS, Chevrolet Onix and the all-new Chevrolet Silverado helped boost our top-line," said Dan Ammann, GM executive vice president and CFO. "We also further strengthened our fortress balance sheet and reduced our cost of capital through our $4.5 billion refinancing of high cost obligations."
About General Motors Co.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.
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