GM REPORTS FIRST QUARTER NET INCOME OF $1.0 BILLION

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  • EBIT-adjusted of $2.2 billion
  • Net income of $0.60 per share after net loss from special items of $0.33 per share 

DETROIT – General Motors Co. (NYSE: GM) today announced first quarter net income attributable to common stockholders of $1.0 billion, or $0.60 per fully diluted share.  These results include a net loss from special items related to goodwill impairment that reduced net income by $0.6 billion, or $0.33 per fully diluted share.

In the first quarter of 2011, GM’s net income attributable to common stockholders was $3.2 billion, or $1.77 per fully diluted share, including a net gain from special items of $1.5 billion or $0.82 per share.

Net revenue in the first quarter of 2012 was $37.8 billion, an increase of $1.6 billion compared with the first quarter of 2011.  Earnings before interest and tax (EBIT) adjusted was $2.2 billion, an increase of $0.2 billion compared with the first quarter of 2011.

“The U.S. economic recovery, record demand for GM vehicles in China and the global growth of the Chevrolet brand helped deliver solid earnings for General Motors,” said Dan Akerson, chairman and CEO.  “New products are starting to make a difference in South America, but Europe remains a work in progress.  We’ll continue to work on both revenue and cost opportunities until we have brought GM to competitive levels of profitability.”

GM Results Overview (in billions except for per share amounts)

Q1 2012 Q1 2011
Revenue  $37.8 $36.2
Net income attributable to common stockholders  $1.0 $3.2
Earnings per share (EPS) fully diluted $0.60 $1.77
Impact of special items on EPS fully diluted $(0.33) $0.82
EBIT-adjusted  $2.2 $2.0
Automotive net cash flow from operating activities $2.3 $(0.6)
Automotive free cash flow $0.3 $(1.9)

Segment Results

  • GM North America (GMNA) reported EBIT-adjusted of $1.7 billion, including restructuring costs of $0.1 billion, an improvement of $0.4 billion compared with the first quarter of 2011.
  • GM Europe (GME) reported an EBIT-adjusted loss of $0.3 billion compared with break-even results in the first quarter of 2011.
  • GM International Operations (GMIO) reported EBIT-adjusted of $0.5 billion compared with $0.6 billion in the first quarter of 2011.
  • GM South America’s (GMSA) EBIT-adjusted of $0.1 billion was flat compared with the first quarter of 2011.
  • GM Financial earnings before tax was $0.2 billion for the quarter, a $0.1 billion increase from the prior year.

Cash Flow and Liquidity

For the quarter, automotive cash flow from operating activities was $2.3 billion and automotive free cash flow was $0.3 billion.  GM ended the quarter with very strong total automotive liquidity of $37.3 billion.  Automotive cash and marketable securities was $31.5 billion compared with $31.6 billion at the end of the fourth quarter of 2011.

2012 GMNA Outlook

With the strengthening U.S. economy helping release pent-up demand, GM now expects that full-year 2012 U.S. light vehicle sales will be in the 14.0 million – 14.5 million range.  Previously, the company expected sales to fall between 13.5 million – 14.0 million units.

Based on the company’s current outlook, GMNA’s results for the second and third quarters of 2012 are expected to be comparable to the first quarter of 2012 due to the scheduled downtime at factories that produce full-size trucks.

“We are aggressively eliminating complexity to reduce our costs, and at that same time, we are preparing for more than 20 major vehicle launches around the world in 2012 to drive revenue this year and farther into the future,” said Dan Ammann, senior vice president and CFO.

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’s brands include Chevrolet and Cadillac, as well as Baojun, Buick, GMC, Holden, Isuzu, Daewoo, Jiefang, Opel, Vauxhall and Wuling. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at gm.com.

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