General Motors recently announced its best third-quarter unit sales since 1980 with over 2.4 million vehicles sold globally. Now, the automaker has put out the financial portion of its Q3 results, and as the previous figures suggested, GM did very well for the quarter. It even beat analysts' predictions.
GM's net income for Q3 was $1.4 billion, which was twice as much as its $700 million in income for the same quarter in 2013. The strong performance could have been even better, too, as the automaker said that special items like flood damage at the GM Technical Center in Warren, MI, and "long-lived asset impairments in Russia" cost the company $300 million.
Revenue was up slightly, as well, to $39.3 billion, compared to $39 billion for last year. For the first three quarters of 2014, total revenue has been $116.3 billion, versus $114.9 billion through the same period in 2013. According to The Motley Fool, analysts had expected lower numbers, and those predictions had led to a decline in GM's share price before the results were announced.
Regionally, the US strongly supported GM's bottom line during the quarter. Earnings before interest and tax (EBIT) reached $2.5 billion, compared to $2.2 billion last year. "Strong performance in North America, where we achieved a 9.5 percent margin, anchored our overall results," said Chuck Stevens, GM executive vice president and chief financial officer, in the company's financial announcement. The results are especially impressive when you consider this is a market with over 70 recalls from the automaker this year covering roughly 26.5 million vehicles.
Things were a bit more tempered elsewhere. Europe posted a $400 million loss in EBIT, including $200 million in restructuring costs, compared a $200 million loss in 2013. GM International Operations and South America remained exactly the same with an EBIT $300 million between this year and last year for both divisions.
The fourth quarter may continue GM's growth. In the US, the automaker is introducing the Chevrolet Colorado and GMC Canyon, and for China it has the Cadillac ATS-L, Buick Envision and new Chevrolet Cruze. Scroll down for the company's full announcement.
GM's net income for Q3 was $1.4 billion, which was twice as much as its $700 million in income for the same quarter in 2013. The strong performance could have been even better, too, as the automaker said that special items like flood damage at the GM Technical Center in Warren, MI, and "long-lived asset impairments in Russia" cost the company $300 million.
Revenue was up slightly, as well, to $39.3 billion, compared to $39 billion for last year. For the first three quarters of 2014, total revenue has been $116.3 billion, versus $114.9 billion through the same period in 2013. According to The Motley Fool, analysts had expected lower numbers, and those predictions had led to a decline in GM's share price before the results were announced.
Regionally, the US strongly supported GM's bottom line during the quarter. Earnings before interest and tax (EBIT) reached $2.5 billion, compared to $2.2 billion last year. "Strong performance in North America, where we achieved a 9.5 percent margin, anchored our overall results," said Chuck Stevens, GM executive vice president and chief financial officer, in the company's financial announcement. The results are especially impressive when you consider this is a market with over 70 recalls from the automaker this year covering roughly 26.5 million vehicles.
Things were a bit more tempered elsewhere. Europe posted a $400 million loss in EBIT, including $200 million in restructuring costs, compared a $200 million loss in 2013. GM International Operations and South America remained exactly the same with an EBIT $300 million between this year and last year for both divisions.
The fourth quarter may continue GM's growth. In the US, the automaker is introducing the Chevrolet Colorado and GMC Canyon, and for China it has the Cadillac ATS-L, Buick Envision and new Chevrolet Cruze. Scroll down for the company's full announcement.
GM Reports Third Quarter Net Income of $1.4 Billion
EPS of $0.81 including net loss from special items of $(0.16) per share
EBIT-adjusted of $2.3 billion
DETROIT – General Motors Co. (NYSE: GM) today announced third quarter net income attributable to common stockholders of $1.4 billion, or $0.81 per diluted share. A net loss from special items reduced net income by $0.3 billion, or $(0.16) per diluted share.
Special items were primarily related to flood damage sustained at the GM Technical Center in Michigan and long-lived asset impairments in Russia.
"Strong global sales and growing margins in North America and China helped GM deliver very solid third quarter results," said GM CEO Mary Barra. "Despite industry challenges in Russia and South America, our earnings were on plan as we continue to execute our customer-focused strategy."
In the third quarter of 2013, GM's net income attributable to common stockholders was $0.7 billion, or $0.45 per diluted share, which included a net loss from special items that reduced net income attributable to common stockholders by $0.9 billion, or $(0.51) per diluted share.
Earnings before interest and tax (EBIT) adjusted was $2.3 billion and included the impact of $0.2 billion in restructuring costs for actions taken in GM Europe. This compares to the third quarter of 2013, when the company recorded EBIT-adjusted of $2.6 billion, which included $0.1 billion in restructuring costs.
Net revenue in the third quarter of 2014 was $39.3 billion, compared to $39.0 billion in the third quarter of 2013. In the first nine months of 2014, revenue rose to $116.3 billion, up from $114.9 billion in the same period a year ago.
GM Europe reported EBIT-adjusted of $(0.4) billion which includes restructuring costs of $(0.2) billion, compared with EBIT-adjusted of $(0.2) billion in the third quarter of 2013.
GM International Operations reported EBIT-adjusted of $0.3 billion, compared with EBIT-adjusted of $0.3 billion in the third quarter of 2013.
GM South America reported break-even results, compared with EBIT-adjusted of $0.3 billion in the third quarter of 2013.
GM Financial reported earnings before tax of $0.2 billion, compared to $0.2 billion in the third quarter of 2013.
Cash Flow and Liquidity
For the quarter, automotive cash flow from operating activities was $0.7 billion and automotive free cash flow adjusted was $(0.8) billion, which was down from $1.3 billion a year ago. The decline in automotive free cash flow adjusted was primarily related to one extra weekly payment cycle to suppliers during the quarter compared with the same quarter a year ago, and cash payments related to repairing recalled vehicles, including costs to expedite parts to dealers.
GM ended the quarter with total automotive liquidity of $36.6 billion. Automotive cash and marketable securities was $26.1 billion compared with $28.4 billion for the second quarter of 2014.
"Strong performance in North America, where we achieved a 9.5 percent margin, anchored our overall results," said Chuck Stevens, GM executive vice president and chief financial officer. "We remain focused on flawlessly launching key vehicles globally in the coming months, while delivering a positive experience for our customers."
Key vehicle launches taking place in the fourth quarter include the recently introduced GMC Canyon and Chevrolet Colorado mid-sized pickups in the U.S., the Cadillac ATS-L, Buick Envision and Chevrolet Cruze in China, and the Opel Corsa and ADAM ROCKS in Europe. The company also has introduced 4G LTE high-speed mobile broadband in 33 vehicles this year, more than the rest of the industry combined, and plans to introduce it on more than a dozen additional models by the end of 2015.
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, 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 $0.81 including net loss from special items of $(0.16) per share
EBIT-adjusted of $2.3 billion
DETROIT – General Motors Co. (NYSE: GM) today announced third quarter net income attributable to common stockholders of $1.4 billion, or $0.81 per diluted share. A net loss from special items reduced net income by $0.3 billion, or $(0.16) per diluted share.
Special items were primarily related to flood damage sustained at the GM Technical Center in Michigan and long-lived asset impairments in Russia.
"Strong global sales and growing margins in North America and China helped GM deliver very solid third quarter results," said GM CEO Mary Barra. "Despite industry challenges in Russia and South America, our earnings were on plan as we continue to execute our customer-focused strategy."
In the third quarter of 2013, GM's net income attributable to common stockholders was $0.7 billion, or $0.45 per diluted share, which included a net loss from special items that reduced net income attributable to common stockholders by $0.9 billion, or $(0.51) per diluted share.
Earnings before interest and tax (EBIT) adjusted was $2.3 billion and included the impact of $0.2 billion in restructuring costs for actions taken in GM Europe. This compares to the third quarter of 2013, when the company recorded EBIT-adjusted of $2.6 billion, which included $0.1 billion in restructuring costs.
Net revenue in the third quarter of 2014 was $39.3 billion, compared to $39.0 billion in the third quarter of 2013. In the first nine months of 2014, revenue rose to $116.3 billion, up from $114.9 billion in the same period a year ago.
GM Results Overview (in billions except for per share amounts)
| Q3 2014 |
Q3 2013 |
|
| Revenue |
$39.3 |
$39.0 |
| Net income attributable to common stockholders |
$1.4 |
$0.7 |
| Earnings per share (EPS) diluted |
$0.81 |
$0.45 |
| Impact of special items on EPS diluted |
$(0.16) |
$(0.51) |
| EBIT-adjusted |
$2.3 |
$2.6 |
| Automotive net cash flow from operating activities |
$0.7 |
$3.3 |
| Adjusted automotive free cash flow |
$(0.8) |
$1.3 |
Segment Results
GM Europe reported EBIT-adjusted of $(0.4) billion which includes restructuring costs of $(0.2) billion, compared with EBIT-adjusted of $(0.2) billion in the third quarter of 2013.
GM International Operations reported EBIT-adjusted of $0.3 billion, compared with EBIT-adjusted of $0.3 billion in the third quarter of 2013.
GM South America reported break-even results, compared with EBIT-adjusted of $0.3 billion in the third quarter of 2013.
GM Financial reported earnings before tax of $0.2 billion, compared to $0.2 billion in the third quarter of 2013.
Cash Flow and Liquidity
For the quarter, automotive cash flow from operating activities was $0.7 billion and automotive free cash flow adjusted was $(0.8) billion, which was down from $1.3 billion a year ago. The decline in automotive free cash flow adjusted was primarily related to one extra weekly payment cycle to suppliers during the quarter compared with the same quarter a year ago, and cash payments related to repairing recalled vehicles, including costs to expedite parts to dealers.
GM ended the quarter with total automotive liquidity of $36.6 billion. Automotive cash and marketable securities was $26.1 billion compared with $28.4 billion for the second quarter of 2014.
"Strong performance in North America, where we achieved a 9.5 percent margin, anchored our overall results," said Chuck Stevens, GM executive vice president and chief financial officer. "We remain focused on flawlessly launching key vehicles globally in the coming months, while delivering a positive experience for our customers."
Key vehicle launches taking place in the fourth quarter include the recently introduced GMC Canyon and Chevrolet Colorado mid-sized pickups in the U.S., the Cadillac ATS-L, Buick Envision and Chevrolet Cruze in China, and the Opel Corsa and ADAM ROCKS in Europe. The company also has introduced 4G LTE high-speed mobile broadband in 33 vehicles this year, more than the rest of the industry combined, and plans to introduce it on more than a dozen additional models by the end of 2015.
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, 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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