GM Reports First Quarter 2010 Results GM achieves net income of $0.9 billion and EPS of $1.66

DETROIT, May 17 /PRNewswire/ -- General Motors Company today announced its first quarter 2010 results, marked by revenue of $31.5 billion and operating income of $1.2 billion.  Net income attributable to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66.  

GM’s first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand.

GM North America had EBIT in the first quarter 2010 of $1.2 billion, up from a loss of $3.4 billion in the fourth quarter 2009.  GM Europe had a loss before interest and taxes of $0.5 billion; an improvement of $0.3 billion from the fourth quarter.  GM International Operations posted EBIT of $1.2 billion, up $0.5 billion from the fourth quarter.

Cash flow from operating activities was $1.7 billion and after adjusting for capital expenditures of $0.7 billion, free cash flow was $1.0 billion.  GM ended the first quarter with $35.7 billion in cash and marketable securities, including funds in escrow.

“We’re pleased with our first quarter performance, in particular achieving profitability,” said Chris Liddell, vice chairman and chief financial officer. “In North America 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.”

Forward-Looking Statements:

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.

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.

Exhibit 1


General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)



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 United States 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.

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.

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.

The following table summarizes the reconciliation of EBIT to its most comparable U.S. GAAP measure (dollars in millions):


Successor


Three Months

Ended

March 31, 2010

Three Months

Ended

December 31, 2009

July 10, 2009

Through

September 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)




__________


(a)

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




General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)



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):



Successor


Three Months

Ended

March 31, 2010

Three Months

Ended

December 31, 2009

July 10, 2009

Through

September 30, 2009

Adjusted EBIT

$  1,701

$  (954)

$  (631)

Adjustments

123

(3,092)

(110)

EBIT

$  1,824

$  (4,046)

$  (741)


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:



o

Gain of $123 million as a result of the sale of Saab to Spyker Cars NV.




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



o

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 healthcare costs of UAW hourly retirees and their beneficiaries;


o

Impairment charge of $270 million related to GM's investment in GMAC common stock;


o

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 Delphi facilities; and


o

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 Automotive, Inc.).




In the period July 10, 2009 through September 30, 2009 Adjustments included the following:



o

Charges of $110 million to record reserves against advances to Delphi.




General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)





Successor

Predecessor


Three Months

Ended

March 31, 2010

Three Months

Ended

March 31, 2009


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




__________


(a)

Production volume represents the number of vehicles manufactured by GM's and Old GM's assembly facilities and also includes vehicles produced by certain joint ventures.

(b)

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 production.

(c)

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 Equity income, net of tax.




General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)





Successor

Three Months

Ended

March 31, 2010

Predecessor

Three Months

Ended

March 31, 2009



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




__________


(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.

(e)

Vehicle sales primarily represent estimated sales to the ultimate customer.

(f)

Includes SGM, SGMW, FAW-GM and HKJV joint venture sales.

(g)

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 these entities are recorded in Equity income, net of tax.




General Motors Company and Subsidiaries

Supplemental Material


(Unaudited)





Successor

Three Months

Ended

March 31, 2010

Predecessor

Three Months

Ended

March 31, 2009



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%




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%




GMNA Capacity Utilization(f)                       

84.8%

37.7%




__________


(a)

Includes HUMMER, Saab, Saturn and Pontiac vehicle sales data.

(b)

Vehicle sales represent sales to the ultimate customer.

(c)

Vehicle sales primarily represent estimated sales to the ultimate customer.

(d)

Includes SGM, SGMW, FAW-GM and HKJV joint venture sales.

(e)

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 tax.

(f)

Two shift rated, annualized.






Successor

Predecessor


March 31, 2010

December 31, 2009

Worldwide Employment (thousands)



GMNA(a)                                    

103

103

GME(b)(c)                                   

45

50

GMIO(d)                                     

57

62

Total Worldwide                             

205

215




United States — Salaried                       

26

26

United States — Hourly                         

52

51




__________


(a)

Beginning with the three months ended March 31, 2010 substantially all of the 1,200 Corporate employees are included in GMNA.

(b)

Decrease in GME primarily reflects reduction of 3,200 employees due to the sale of Saab and reduction of 800 hourly employees in Germany.

(c)

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 and 2,500 employees.

(d)

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 status.






Successor

Predecessor


Three Months

Ended

March 31, 2010

Three Months

Ended

March 31, 2009

Worldwide Payroll (billions)

$  3.0

$  2.9




General Motors Company and Subsidiaries

Condensed Consolidated Statements of Operations


(In millions, except per share amounts)

(Unaudited)





Successor

Three Months

Ended

March 31, 2010

Predecessor

Three Months

Ended

March 31, 2009



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




General Motors Company and Subsidiaries

Condensed Consolidated Balance Sheets


(In millions, except share amounts)

(Unaudited)





Successor


March 31, 2010

December 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

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)

6,998

6,998

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




SOURCE General Motors



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