Attached files
| file | filename |
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| EX-99.2 - EXHIBIT 99.2 - 2016 Q4 AND FULL YEAR HIGHLIGHTS - General Motors Co | gm201610kconsolidatedearni.htm |
| 8-K - 8-K - General Motors Co | a2016q4earningsrelease8-k.htm |
2016 FULL-YEAR AND
FOURTH-QUARTER EARNINGS
EBIT-Adj. Margin EBIT-Adj. Adj. Auto FCF EPS Diluted-Adj.
Non-GAAP 7.5% $12.5 B $6.9 B $6.12
Vs. 2015 +0.4 pts +15.9 % +$4.7 B +21.9 %
FULL-YEAR 2016 RESULTS OVERVIEW
GM Reports Record Full-Year Earnings Per Share
• Strong full-year net income and records for revenue, EBIT-adjusted and EBIT-adjusted margin
• Fourth-quarter EPS-diluted of $1.19; EPS diluted-adjusted of $1.28
• Fourth-quarter net income of $1.8 billion and EBIT-adjusted of $2.4 billion
• Returned $4.8 billion to shareholders in 2016
2017 OUTLOOK: GM EXPECTS ANOTHER YEAR OF STRONG EARNINGS
Net Revenue Net Income
Auto Operating
Cash Flow
EPS-Diluted
GAAP $166.4 B $9.4 B $14.3 B $6.00
Vs. 2015 +9.2 % (2.7) % +$4.3 B +1.5 %
• GM expects to deliver full-year 2017 EPS-diluted and
diluted-adjusted of $6.00-$6.50; maintain or improve
EBIT-adjusted and EBIT-adjusted margin; and generate
higher revenues, compared to 2016. The company also
expects to generate about $15 billion in automotive
operating cash flow and about $6 billion in adjusted-
automotive free cash flow. These measures do not
consider potential future adjustments.
• GM expects its global volume from new or refreshed
vehicles to grow to 38 percent from 2017-2020, up from
26 percent in the 2011-2016 period. New or refreshed
crossovers, trucks and SUVs are expected to represent a
majority of this volume between 2017-2020.
• The company raised its cost efficiency target for
2015-2018 to $6.5 billion, an increase of $1 billion.
“By almost any measure, 2016 was a great year for our business and I am confident we can
achieve even stronger results. We’ll work to build on our momentum, while continuing to
drive our company to innovate and shape the future of mobility.”
– Mary Barra, Chairman & CEO
2018 Chevrolet Equinox Premier
Exhibit 99.1
Net Revenue Net Income
Auto Operating
Cash Flow
EPS-Diluted
GAAP $43.9 B $1.8 B $4.3 B $1.19
Vs. 2015 +10.8 % (70.7) % +2.1 B (69.6) %
EBIT-Adj. Margin EBIT-Adj. Adj. Auto FCF EPS Diluted-Adj.
Non-GAAP 5.4% $2.4 B $1.7 B $1.28
Vs. 2015 (1.5) pts (13.7) % +$2.0 B (7.9) %
North America Europe International Ops South America GM Financial (EBT)
2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
12.0 11.0 (0.3) (0.8) 1.1 1.4 (0.4) (0.6) 0.9 0.8
Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15
2.6 2.8 (0.2) (0.3) 0.3 0.4 (0.1) (0.0) 0.2 0.2
SEGMENT RESULTS (EBIT-ADJUSTED - $B)
Calendar-year (CY)
records for EBIT-adj. of
$12.0 billion and revenue
of $119 billion. Achieved
10.1 percent EBIT-adj.
margin for the
year – the second
consecutive year this
margin has been 10
percent or greater.
Reduced losses in 2016
by $0.6 billion during the
year. Without the
negative $0.3-billion
impact of Brexit, GM
would have achieved its
objective of breakeven
for the year.
Q4 and CY results
include strong China
equity income of $0.5
billion and $2.0 billion,
respectively.
Lower costs contributed
to $0.2-billion year-over-
year improvement
during 2016.
In 2016, posted record
revenues of $9.6 billion
and record 2016 EBT-
adj. of $0.9 billion.
Earning assets grew 36
percent to about
$77 billion, supporting
expected future
earnings growth.
“Solid results in the fourth quarter capped another record year of earnings and beat the
commitments we outlined for 2016. We’ll stay focused on delivering results that will enable
us to return capital and create more shareholder value.”
– Chuck Stevens, Executive Vice President and CFO
Q4 RESULTS OVERVIEW
Fourth-quarter 2016 net income of $1.8 billion
includes a net loss from special items of
$0.1 billion, and an unfavorable $0.3 billion
foreign exchange impact, compared to the prior
year. Fourth-quarter 2015 net income of
$6.3 billion included a net gain from special items
of $4.0 billion, primarily related to the reversal of
deferred tax asset valuation allowances in Europe.
Fourth-quarter 2016 EBIT-adjusted of $2.4 billion
includes an unfavorable $0.5 billion foreign
exchange impact, compared to the prior year.
FOURTH-QUARTER RESULTS
2016 2015
Cash and Current Marketable Securities 21.6 20.3
Total Auto Liquidity 35.6 32.5
LIQUIDITY ($B)
GM’s 2016 year-end global underfunded position was $18.3 billion, down from
$21.2 billion at the end of 2015. The year-end global pension obligation of
$92.9 billion was about 80-percent funded. The company’s 2016 year-end U.S.
defined-benefit pension plan underfunded position was $7.2 billion, down from
$10.4 billion at the end of 2015. The year-end U.S. defined-benefit pension plan
obligation of $68.8 billion was about 90-percent funded.
Based on current assumptions, GM doesn’t expect to make significant, mandatory
contributions to its U.S. qualified pension plans for the next five years.
PENSION UPDATE
Returned $4.8 billion to shareholders in
2016 through share buybacks of
$2.5 billion and dividends of $2.3 billion.
Since 2012, GM has returned more than
$18 billion, which represents more than
90 percent of available free cash flow to
shareholders during the 2012-2016 period.
CAPITAL RETURN
For the year ended Dec. 31, 2016, GM sold
a record 10 million vehicles around the
world, up 1.2 percent from 2015. In Q4, GM
sold 2.78 million vehicles, up 3.3 percent
compared to Q4 2015. December 2016
global volume of 1.05 million units was
the highest in the company’s history,
capping the fourth consecutive record
year for global deliveries.
For the full year, GM sold 3.04 million
vehicles in the U.S. and increased retail
share 0.5 percentage points – more than
any full-line automaker. In China,
deliveries increased 7.1 percent to a record
3.87 million vehicles. In Europe, Opel/
Vauxhall posted a 4.0-percent sales
increase.
For more details on GM’s global sales,
click here.
GLOBAL VEHICLE SALES
Led by strong gains in midsize
pickups, small crossovers and large
SUVs, Chevrolet was the fastest-
growing U.S. brand in 2016, gaining
0.5 percentage points of U.S. retail
market share.
Cadillac volume in China rose
46 percent to 116,406 – the first time it
has eclipsed 100,000 in China during a
single year – driving global brand sales
up 11 percent to a 30-year high.
In 2016, Opel/Vauxhall improved
market share in 18 of 22 European
markets, including Germany, led by
the European Car of the Year, Opel
Astra, which was up more than
25 percent versus 2015.
Crossover momentum: Chevrolet Trax
and Buick Encore combined retail
sales in the U.S. increased 28 percent
in 2016. In 2017, GM plans to launch
the all-new Chevrolet Equinox and
Traverse, and GMC Terrain.
PRODUCT HIGHLIGHTS
2018 GMC Terrain SLT (left) and Denali (right)
2017 Chevrolet Colorado ZR2
2017 Buick Encore Premium
Forward-looking statement
In this press release, 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 “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,”
“expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,”
“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 materially 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 the following: (1) our ability to deliver new products,
services and customer experiences in response to new participants in the automotive industry; (2) our ability to fund and introduce new and improved vehicle models that
are able to attract a sufficient number of consumers; (3) the success of our full-size pick-up trucks and SUVs, which may be affected by increases in the price of oil; (4)
global automobile market sales volume, which can be volatile; (5) aggressive competition in China; (6) the international scale and footprint of our operations which exposes
us to a variety of domestic and foreign political, economic and regulatory risks, including the risk of changes in existing, the adoption of new, or the introduction of novel
interpretations of, laws regulations, policies or other activities of governments, agencies and similar organizations particularly laws, regulations and policies relating to free
trade agreements, vehicle safety including recalls, and, including such actions that may affect the production, licensing, distribution or sale of our products, the cost
thereof or applicable tax rates; (7) our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (8) our ability to comply
with extensive laws and regulations applicable to our industry, including those regarding fuel economy and emissions; (9) 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; (10)
our ability to comply with the terms of the DPA; (11) our ability to maintain quality control over our vehicles and avoid material vehicle recalls and the cost and effect on
our reputation and products; (12) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production
schedules; (13) our dependence on our manufacturing facilities around the world; (14) our highly competitive industry, which is characterized by excess manufacturing
capacity and the use of incentives and the introduction of new and improved vehicle models by our competitors; (15) our ability to realize production efficiencies and to
achieve reductions in costs as we implement operating effectiveness initiatives throughout our automotive operations; (16) our ability to successfully restructure our
operations in various countries; (17) our ability to manage risks related to security breaches and other disruptions to our vehicles, information technology networks and
systems; (18) our continued ability to develop captive financing capability through GM Financial; (19) 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; and
(20) significant changes in economic, political, regulatory environment, market conditions, foreign currency exchange rates or political stability 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.
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 http://
www.gm.com.
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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