Attached files
| file | filename |
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| 8-K - Q2 2017 EARNINGS RELEASE 8-K - General Motors Co | a2017q2earningsrelease8-k.htm |
| EX-99.2 - EXHIBIT 99.2 - Q2 2017 HIGHLIGHTS - General Motors Co | gm2017q2consolidatedearnin.htm |
SECOND-QUARTER 2017 EARNINGS
FROM CONTINUING OPERATIONS
EBIT-Adj. Margin EBIT-Adj. Adj. Auto FCF EPS Diluted-Adj.
Non-GAAP 10.0% $3.7 B $2.6 B $1.89
Vs. Q2 2016 (0.3) pts (4.3) % ($0.7) B +5.6 %
Q 2 2 0 1 7 R E S U LT S O V E R V I E W
GM Reports Net Revenue of
$37 Billion and Income of
$2.4 Billion from
Continuing Operations
• EPS-diluted of $1.60, down 8 percent; EPS diluted-
adjusted of $1.89, up 5.6 percent
• EBIT-adjusted of $3.7 billion and EBIT-adjusted
margin of 10.0 percent
• North America EBIT-adjusted of $3.5 billion, and
EBIT-adjusted margin of 12.2 percent
Net Revenue Income Auto Operating Cash Flow EPS-Diluted
GAAP $37.0 B $2.4 B $5.1 B $1.60
Vs. Q2 2016 (1.1) % (11.3) % +$0.3 B (8.0) %
“Disciplined and relentless focus on improving our business performance led to a strong quarter and very solid rst half of the year. We will continue transforming GM to capitalize on growth opportunities and deliver even more value for our shareholders.”
– Mary Barra, Chairman & CEO
RESTRUCTURING
I n M a y , G M a n n o u n c e d k e y
r e s t r u c t u r i n g a c t i o n s i n G M ’s
International operations to focus GM
India on export manufacturing and the
t r a n s i t i o n o f G M S o u t h A f r i c a
manufacturing to Isuzu Motors. The
Chevrolet brand will be phased out of
both markets by the end of 2017.
With these actions and the pending sale
of GM’s Opel / Vauxhall brands and GM
Financial’s European operations to PSA
Group, GM believes it is now in the right
markets to capitalize on its higher-
return franchises and long-term growth
opportunities, including reshaping the
future of personal mobility.
GM will continue to target operational
improvements by market and product
segment to increase its competitiveness
a n d d r i v e s t r o n g e r b u s i n e s s
performance.
In the second quarter, GM delivered
725,000 total vehicles in the United
States, driven by a 24-percent increase
in retail crossover sales. The Q2
crossover results are the best in GM
history.
GM’s U.S. daily rental sales were 6
percent of total vehicle sales in Q2, the
lowest of any full-line automaker.
Daily rental sales were down about
25,000 vehicles or 35 percent compared
to Q2 2016.
Q2 VEHICLE SALES
For more details on second-quarter
sales, click here.
In China, GM deliveries of 852,000
vehicles set a second-quarter record,
up 1.6 percent compared to Q2 2016.
Strong sales of Cadillac and Baojun
vehicles led the way, up 62 percent and
66 percent, respectively.
South America delivered 160,000
vehicles in the quarter, up 18 percent,
compared to industry growth of 13
percent.
2017 Cadillac XT5
FROM CONTINUING OPERATIONS
2018 Chevrolet Equinox
Exhibit 99.1
North America International Ops South America GM Financial (EBT)
Q2 17 Q2 16 Q2 17 Q2 16 Q2 17 Q2 16 Q2 17 Q2 16
3.5 3.7 0.3 0.2 (0.0) (0.1) 0.4 0.2
Improved mix and cost
eciencies largely oset lower
volumes, price and FX, and drove
strong EBIT-adjusted and an
EBIT-adjusted margin of 12.2
percent.
Improved volume drove
China JV equity income of
$0.5 billion.
Despite challenging macro
economic conditions,
GMSA posted year-over-
year improvement to break
even.
Achieved 12 percent EBT
margin on record $3 billion
in revenue. Continued
strong growth of earnings
assets, up 38 percent YOY.
“Strong results in North America and China, solid improvement in South America and continued growth of GM Financial drove another strong quarter. With an aggressive launch cadence still ahead this year, we are on track to meet our nancial commitments for 2017.”
– Chuck Stevens, Executive Vice President and CFO
S E G M E N T R E S U LT S ( E B I T- A D J U ST E D F R O M C O N T I N U I N G O P E R AT I O N S - $ B )
2018 GMC Terrain SLT
Q2 17 Q2 16
Cash and Current Marketable Securities 20.5 20.1
Total Auto Liquidity 34.6 34.3
In the second quarter of 2017, GM paid
$0.6 billion in common stock dividends
and repurchased $1.5 billion of common
stock. For the full year GM expects to
return up to $7 billion to shareholders
through common stock dividends and
share buybacks.
CAPITAL RETURN
TECHNOLOGY AND INNOVATION
2017 Chevrolet Bolt EV
In June, GM became the rst company
to use mass-production methods to
build 130 autonomous Chevrolet Bolt
EV test vehicles, growing its self-
driving test eet to 180.
2017 VEHICLE LAUNCHES
CASH AND LIQUIDITY FROM CONTINUING OPERATIONS ($B)
For the first six months of the year,
crossover segments grew faster than
any other segment in the U.S. Through
June, U.S. industry crossover retail
sales grew 9 percent compared to 2016.
2018 Chevrolet Traverse
In preparation for the fall introduction
of Super Cruise on the Cadillac CT6,
GM engineers have logged roughly
160,000 miles of U.S. and Canadian
highway driving as part of nal
validation for the system.
Also in June, GM launched Maven Gig
in San Diego and San Francisco to give
drivers access to Chevrolet Bolt EVs for
performing freelance services such as
package delivery and ride sharing.
In the second half of 2017, GM China
plans to introduce 10 new and
refreshed models.
Later this year, Chevrolet will introduce
the Equinox SUV in the fast-growing
compact SUV market in Brazil.
The company is well positioned to
continue capitalizing on this trend with
the launches of the GMC Terrain,
Chevrolet Traverse and Buick Enclave
through the end of the year. Chevrolet
will also introduce the Bolt EV in U.S.
markets nationwide by August 1.
2018 Buick Enclave Avenir
Cautionary Note on Forward-Looking Statements.
This press release and related comments by management may include forward-looking statements. These statements are based on current expectations
about possible future events and thus are inherently uncertain. Our actual results may dier materially from forward-looking statements due to a variety of
factors, including: (1) our ability to deliver new products, services and experiences that attract new, and are desired by existing, customers and to eectively
compete in autonomous, ride-sharing and transportation as a service; (2) sales of full-size pick-up trucks and SUVs, which may be aected by increases in
the price of oil; (3) the volatility of global sales and operations; (4) aggressive competition, including the impact of new market entrants; (5) changes in, or
the introduction of novel interpretations of, laws, regulations or policies particularly those relating to free trade agreements, tax rates and vehicle safety and
any government actions that may aect the production, licensing, distribution, pricing, or selling of our products; (6) our joint ventures, which we cannot
operate solely for our benet and over which we may have limited control; (7) compliance with laws and regulations applicable to our industry, including
those regarding fuel economy and emissions; (8) costs and risks associated with litigation and government investigations; (9) compliance with the terms of
the Deferred Prosecution Agreement; (10) our ability to maintain quality control over our vehicles and avoid recalls and the cost and eect on our reputation
and products; (11) the ability of suppliers to deliver parts, systems and components without disruption and on schedule; (12) our dependence on our
manufacturing facilities; (13) our ability to realize production eciencies and cost reductions; (14) our ability to successfully restructure operations in
various countries; (15) our ability to manage risks related to security breaches and other disruptions to vehicles, information technology networks and
systems; (16) our ability to develop captive nancing capability through GM Financial; (17) signicant increases in pension expense or projected pension
contributions; (18) signicant changes in the economic, political, and regulatory environment, market conditions, and foreign currency exchange rates; and
(19) uncertainties associated with the consummation of the sale of Opel/Vauxhall to the PSA Group, including satisfaction of the closing conditions. A
further list and description of these risks, uncertainties and other factors can be found in our Annual Report on Form 10-K for the scal year ended December
31, 2016, and our subsequent lings with the Securities and Exchange Commission.GM cautions readers not to place undue reliance on forward-looking
statements. GM undertakes no obligation to update publicly or otherwise revise any forward-looking statements.
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
Media Investors
CONTACTS
Michael Heifler
GM Investor Relations
313-418-0220
michael.heifler@gm.com