Attached files
| file | filename |
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| EX-99.2 - EXHIBIT 99.2 - Q3 2016 HIGHLIGHTS - General Motors Co | gm2016q3consolidatedearnin.htm |
| 8-K - Q3 2016 EARNINGS RELEASE 8-K - General Motors Co | a2016q3earningsrelease8-k.htm |
Net Revenue
$42.8B
+10.3%
Net Income
$2.8B
+104%
Operating Income
$3.0B
+203%
Auto Operating
Cash Flow
$5.8B
+$3.2B
EPS Diluted
$1.76
+110%
EBIT Adj.
$3.5B
+14.4%
EBIT Adj. Margin
8.3%
+0.3 pts
% ROIC Adj.
30.6
+4.6 pts
Auto FCF Adj.
$3.5B
+$2.7B
EPS Diluted Adj.
$1.72
+14.7%
THIRD-QUARTER
2016 EARNINGS
• Record net revenue
• Q3 records for EPS diluted and EPS diluted-adjusted
• Q3 records for EBIT-adjusted and EBIT-adjusted margin
• Q3 record for North America EBIT-adjusted; 11.2 percent margin
“ Our record third quarter, led by strong performance in the U.S. and China,
reflects our determination to deliver on our commitments. We will continue
executing our plan to deliver earnings that enhance shareholder returns.”
- Mary Barra, Chairman & CEO
Vs. Q3 15
GAAP
Non-GAAP
Vs. Q3 15
Q3 KEY HIGHLIGHTS
Q3 2016 RESULTS OVERVIEW
YTD through September 30: GM sold 2.2 million
vehicles in the U.S. and increased retail share
0.5 points – more than any full-line OEM. In China,
deliveries increased 9 percent to a record
2.7 million vehicles. In Europe, Opel/Vauxhall posted
a 5.1-percent sales increase.
In Q3, GM sold 2.4 million vehicles
globally, up 3.8 percent compared
to Q3 2015. YTD, GM sold 7.2 million
vehicles around the world, up 0.4
percent. For more details on GM’s
global sales, click here.
GLOBAL VEHICLE SALES
Chevrolet Bolt EV –
Announced pricing of
$37,495 (under $30,000 for
customers who receive tax
credits) on industry’s first
all-electric 238 mile-per-
full charge vehicle.
In Q3, GM grew U.S. retail
market share faster than
any other OEM, up 0.4 of
a percentage point vs. last
year, with an ATP of $35,700
– almost $5,000 higher than
the industry average.
Announced by 2050,
GM will generate or
source its electricity
with 100 percent
renewables like solar,
wind and land fill gas.
Maven City, Maven
Residential and Express
Drive services are now
available in 10 U.S.
markets and have helped
customers travel nearly
15 million miles.
Record Q3 Net
Income, Up 104%
to $2.8 Billion
Exhibit 99.1
North America
Q3 16
3.5
Q3 15
3.3
Europe
Q3 16
(0.1)
Q3 15
(0.2)
International Ops
Q3 16
0.3
Q3 15
0.3
South America
Q3 16
(0.1)
Q3 15
(0.2)
GM Financial (EBT)
Q3 16
0.2
Q3 15
0.2
In Q3, posted record
revenues of $2.5
billion. YTD, growth
of earning assets to
$74 billion supports
expected future
earnings growth.
Q3 EBIT-adj. record
and EBIT-adj. margin
of 11.2%. This is the
fifth out of the last
six quarters with
a 10%+ EBIT-adj.
margin.
Through Q3, delivered
breakeven results as
EBIT-adj. improved
$0.5 billion, despite
the impact of Brexit.
Q3 results include
strong China equity
income of $0.5 billion.
Cost actions and
improved volumes in
Brazil and Argentina
contributed to $0.1
billion improvement
in the quarter. YTD,
EBIT-adj. improved
$0.3 billion.
SEGMENT RESULTS (EBIT ADJUSTED - $B)
CASH FLOW AND LIQUIDITY HIGHLIGHTS ($B)
Auto Liquidity
Q3 16
21.5
35.5
Q3 15
21.8
34.0
Cash Flow
Q3 16
5.8
3.5
Q3 15
2.6
0.8
Cash and Current Marketable Securities
Total Auto Liquidity
Automotive Operating Cash Flow
Adjusted Auto Free Cash Flow
YTD through September,
Chevrolet U.S. retail sales
were up 2 percent vs. a
year ago and retail share
climbed 0.4 point.
YTD through September,
Opel/Vauxhall increased
sales 5.1 percent, led by
the Opel Astra, which was
up 22 percent.
PRODUCT HIGHLIGHTS
Cadillac increased sales in
China by 79 percent in the
third quarter compared to
last year, led by growth of
the all-new XT5.
Chevrolet Malibu had
its best Q3 in the U.S.
since 1981, selling 42,441
retail units, up 16 percent
compared to last year.
YTD through September 30, 2016, GM paid $1.8
billion in common stock dividends and $1.5
billion to repurchase shares. GM completed
its initial $5 billion common share buyback
program one quarter earlier than planned.
CAPITAL RETURN
“ Strong bottom line performance this year puts us solidly on track to
deliver on our annual earnings outlook, and our cash generation has
allowed us to complete our initial share buyback ahead of schedule.”
- Chuck Stevens, Executive Vice President and CFO
Based on its anticipated strong business
results for the second half of the year,
GM expects full-year earnings per diluted
adjusted share at the high end of its
previously-stated range of $5.50 - $6.00.
OUTLOOK
Forward-Looking Statements In this press release and related comments by management, and in reports we subsequently file and have previously
filed with the SEC on Forms 10-K and 10-Q and file or furnish on Form 8-K, and in related comments by our management, we use words like “antici-
pate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,”
“intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “will,” “should,” “target,” “when,” “would,” or the
negative of any of those words or similar expressions to identify forward looking statements that represent our current judgment about possible
future events. In making these statements, we rely on assumptions and analyses based on our experience and perception of historical trends,
current conditions and expected future developments as well as other factors we consider appropriate under the circumstances. We believe these
judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ material-
ly due to a variety of important factors, both positive and negative. These factors, which may be revised or supplemented in subsequent reports
on SEC Forms 10-Q and 8-K, include, among others: (1) our ability to maintain profitability over the long-term, including our ability to fund and
introduce new and improved vehicle models that are able to attract a sufficient number of consumers; (2) the success of our full-size pickup trucks
and SUVs; (3) global automobile market sales volume, which can be volatile; (4) the results of our joint ventures, which we cannot operate solely
for our benefit and over which we may have limited control; (5) our ability to realize production efficiencies and to achieve reductions in costs
as we implement operating effectiveness initiatives throughout our automotive operations; (6) our ability to maintain quality control over our
vehicles and avoid material vehicle recalls and the cost and effect on our reputation and products; (7) our ability to maintain adequate liquidity and
financing sources including as required to fund our new technology; (8) our ability to realize successful vehicle applications of new technology and
our ability to deliver new products, services and customer experiences in response to new participants in the automotive industry; (9) volatility in
the price of oil; (10) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet
production schedules; (11) risks associated with our manufacturing facilities around the world; (12) our ability to manage the distribution channels
for our products; (13) our ability to successfully restructure our operations in various countries; (14) the continued availability of wholesale and retail
financing in markets in which we operate to support the sale of our vehicles, which is dependent on those entities’ ability to obtain funding and
their continued willingness to provide financing; (15) changes in economic conditions, commodity prices, housing prices, foreign currency exchange
rates or political stability in the markets in which we operate; (16) significant changes in the competitive environment, including the effect of com-
petition and excess manufacturing capacity in our markets, on our pricing policies or use of incentives and the introduction of new and improved
vehicle models by our competitors; (17) significant changes in economic, political, regulatory and market conditions in the countries in which we
operate, particularly China, with the effect of competition from new market entrants and in the United Kingdom with passage of a referendum to
discontinue membership in the European Union; (18) changes in existing, or the adoption of new, laws, regulations, policies or other activities of
governments, agencies and similar organizations, particularly laws, regulations and policies relating to vehicle safety including recalls, and includ-
ing such actions that may affect the production, licensing, distribution or sale of our products, the cost thereof or applicable tax rates; (19) stricter
or novel interpretations and consequent enforcement of existing laws, regulations and policies; (20) costs and risks associated with litigation and
government investigations including the potential imposition of damages, substantial fines, civil lawsuits and criminal penalties, interruptions of
business, modification of business practices, equitable remedies and other sanctions against us in connection with various legal proceedings and
investigations relating to our various recalls; (21) our ability to comply with the terms of the DPA; (22) our ability to manage risks related to security
breaches and other disruptions to our vehicles, information technology networks and systems; (23) significant increases in our pension expense
or projected pension contributions resulting from changes in the value of plan assets, the discount rate applied to value the pension liabilities or
mortality or other assumption changes; (24) our continued ability to develop captive financing capability through GM Financial; and (25) changes
in accounting principles, or their application or interpretation, and our ability to make estimates and the assumptions underlying the estimates,
which could have an effect on earnings. We caution readers not to place undue reliance on forward-looking statements. We undertake no obligation
to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that
affect the subject of these statements, except where we are expressly required to do so by law.
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 gm.com.
CONTACTS
Tom Henderson
GM Finance Communications
313-410-2704
tom.e.henderson@gm.com
Randy Arickx
GM Investor Relations
313-268-7070
randy.c.arickx@gm.com
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