Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - 2017 Q4 AND FULL YEAR HIGHLIGHTS - General Motors Co | a2017q4consolidatedearning.htm |
| 8-K - 2017 Q4 AND FULL YEAR CONSOLIDATED EARNINGS RELEASE 8-K - General Motors Co | a2017q4earningsrelease8-k.htm |
Sweeping change accompanied record performance at
General Motors in 2017. To continue focusing resources
on its most pro table franchises, GM sold its Opel/
Vauxhall and GM Financial European operations, and
exited South and East Africa, and India.
The company reduced U.S. inventories to align supply
with demand, while preparing for its all-new full-size
pickups, and completed the refresh of its crossover
portfolio by launching the Chevrolet Traverse and
Equinox, Buick Enclave and GMC Terrain.
To advance its vision of a zero emissions world, GM
laid out plans to introduce at least 20 new all-electric
vehicles that will launch by 2023. The company also
recently led a Safety Petition asking the U.S.
Department of Transportation to allow GM to safely
deploy its fourth-gen self-driving Cruise AV on public
roads. This vehicle eliminates the steering wheel,
pedals and other unnecessary manual controls.
GM expects to deploy self driving vehicles in a ride
sharing environment in 2019.
In January, GM forecasted its full-year 2018 to be
largely in line with 2017’s record performance,
building on previous records in 2016 and 2015. The
introduction of its all-new full-size pickups later this
year is expected to help accelerate earnings in 2019.
On a consolidated basis (including discontinued
operations), GM reported a 2017 net loss of $3.9
billion, driven primarily by charges totaling $13.5
billion. These included a $7.3-billion non-cash charge
related to the remeasurement of deferred tax assets
due to U.S. tax reform, and a largely non-cash charge
of $6.2 billion resulting from the sale of Opel/
Vauxhall.
EARNINGS FROM
CONTINUING OPERATIONS
GM Reports 2017 EPS
Diluted of $0.22 and
Record EPS Diluted-
adjusted of $6.62
• Full-year income of $0.3 billion; EBIT-adj. of $12.8 billion, repeats record 2016
• Third straight year of 10-percent or higher margins in North America
• Q4 EPS diluted of $(3.46); Record Q4 EPS diluted-adj. of $1.65
• Results reflect $7.3 billion non-cash charge related to U.S. tax reform
EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS Diluted-adj.
Non-GAAP 8.8% $12.8 B $5.2 B $6.62
Vs. 2016 +0.2 pts Equal $(3.0) B +8.2%
F U L L -Y E A R 2 0 1 7 R E S U LT S O V E R V I E W
Net Revenue Income Auto Operating Cash Flow EPS-Diluted
GAAP $145.6 B $0.3 B $13.9 B $0.22
Vs. 2016 (2.4) % (96.3) % $(0.6) B (96.3)%
“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year. We will continue executing our plan and reshaping our company to position it for long-term success.”
– Mary Barra, Chairman and CEO
FROM CONTINUING OPERATIONS
IMPACT OF SPECIAL CHARGES
A YEAR OF TRANSFORMATION
Fourth-Generation Self-Driving Cruise AV
Exhibit 99.1
EBIT-adjusted was a record for a fourth quarter. This
result was driven by sales of GM’s latest crossovers,
along with strong pricing and cost control — which
more than oset a wholesale volume decline during
the quarter.
Fourth-quarter income (loss) of $(4.9) billion includes a
non-cash charge of $7.3 billion related to the
remeasurement of deferred tax assets due to U.S. tax
reform. Fourth-quarter 2016 income was $1.9 billion.
FOURTH-QUARTER RESULTS
EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS Diluted-adj.
Non-GAAP 8.2% $3.1 B $4.2 B $1.65
Vs. Q4 2016 +1.7 pts +18.7 % +$1.7 B +21.3%
Q 4 2 0 1 7 R E S U LT S O V E R V I E W
Net Revenue
Income
(Loss)
Auto Operating Cash Flow EPS-Diluted
GAAP $37.7 B $(4.9) B $6.6 B $(3.46)
Vs. Q4 2016 (5.5) % $(6.8) B $1.9 B $(4.73)
FROM CONTINUING OPERATIONS
“Improvements in all operating segments and an intense focus on cost reductions generated a record quarter and another record year. We plan to build on this momentum in 2018 and beyond as we focus on growth opportunities across many parts of our business.”
– Chuck Stevens, Executive Vice President and CFO
North America GM International GM Financial (EBT)
2017 2016 2017 2016 2017 2016
11.9 12.4 1.3 0.8 1.2 0.8
Q4 17 Q4 16 Q4 17 Q4 16 Q4 17 Q4 16
2.9 2.7 0.4 0.2 0.3 0.2
Record Q4 EBIT-adj. and
record full-year EBIT-adj.
margin of 10.7% — the
third straight year above
10% — despite an 11.3%
reduction in wholesale
volume. Year-ending U.S.
inventory was at 63 days
supply — down 90,000
units from 2016.
Posted full-year record
revenues of $12.2 billion
and record 2017 EBT-adj. of
$1.2 bill ion — a 50%
increase over 2016 results.
Earning assets grew 25
percent to about $86.0
billion.
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 )
O p e r a t i n g r e s u l t s
improved year-over-year,
d r i ve n b y co nt i n u e d
s t r o n g C h i n a e q u i t y
income of $2 billion and in
South America where
the company returned to
protability in 2017.
Through December 31, 2017, GM sold 8.9 million
vehicles globally, an increase of 0.8 percent from 2016,
and grew market share in each of its three key
markets.
In the United States, GM sold 3 million vehicles,
including record sales of crossovers and pickup trucks,
helping the company earn record average transaction
prices, according to J.D. Power PIN estimates.
GM and its joint ventures sold 4 million vehicles in
China for the first time. The record sales were
anchored by Baojun and Buick, along with Cadillac,
which posted a sales increase of 51 percent.
In South America, Chevy posted a 13.8-percent sales
increase.
Global deliveries of electric vehicles were a record
69,500, led by record deliveries of Chevrolet Bolt EV
(26,000) and Baojun E100 (11,500).
For more details, click here.
In 2018, GM will continue its product momentum with
the introduction of its all-new full-size trucks — the
Chevrolet Silverado and GMC Sierra.
These important vehicles will round out the widest-
ranging truck portfolio in the industry. The 2019
Chevrolet Silverado expands its customer appeal
signicantly, featuring eight distinct models to serve
the “high value,” “high feature” and “high volume”
segments of the market.
This year, GM will gain the benet of a full year of
volume from the ongoing launches of its newest
crossovers, the Chevrolet Traverse, Buick Enclave and
GMC Terrain. The company will also introduce the
next all-new Cadillac — the XT4 crossover — which
will make its global debut this year.
After introducing six new or refreshed models in the
fourth quarter in China, GM and its JV partners will
launch 15 more in 2018, under the Cadillac, Buick,
Chevrolet, Baojun and Wuling brands.
GM returned $6.7 billion to shareholders in 2017
through share buybacks of $4.5 billion and dividends
of $2.2 billion. Since 2012, GM has returned more than
$25 billion, which represents more than 90 percent of
available free cash flow generated over that time.
GM’s 2017 year-end globalautomotive pension
underfunded position was $14.1 bi l l ion, an
improvement from $18.2 billion at the end of 2016
which includes the pension liabilities assumed by PSA
in connection with the sale of Opel/Vauxhall.
The funded status of the company’s $68.5 billion 2017
year-end U.S. defined-benefit pension plan obligation
improved to about 92-percent, up from approximately
90 percent in 2016, as plan assets grew to $62.6 billion
from $61.6 billion.
PRODUCT LAUNCHES
2017 GLOBAL VEHICLE SALES
PENSION UPDATE
CAPITAL RETURN
2017 2016
Cash and Current Marketable Securities 19.6 21.6
Total Auto Liquidity 33.6 35.8
AUTOMOTIVE LIQUIDITY ($B)
All-new Chevrolet Silverado full-size pickup
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 crossovers, SUVs and full-size pick-up trucks; (3) our ability to reduce the
costs associated with the manufacture and sale of electric vehicles; (4) the volatility of global sales and operations; (5) our signicant business in China
which subjects us to unique operational, competitive and regulatory risks; (6) our joint ventures, which we cannot operate solely for our benet and over
which we may have limited control; (7) changes in government leadership and laws (including tax laws), economic tensions between governments and
changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates,
economic downturns in foreign countries, diering local product preferences and product requirements, compliance with U.S. and foreign countries' export
controls and economic sanctions, diering labor regulations and diculties in obtaining nancing in foreign countries; (8) our dependence on our
manufacturing facilities; (9) the ability of suppliers to deliver parts, systems and components without disruption and on schedule; (10) prices of raw
materials; (11) our highly competitive industry; (12) the possibility that competitors may independently develop products and services similar to ours
despite our intellectual property rights; (13) security breaches and other disruptions to our vehicles, information technology networks and systems; (14)
compliance with laws and regulations applicable to our industry, including those regarding fuel economy and emissions; (15) costs and risks associated with
litigation and government investigations; (16) compliance with the terms of the Deferred Prosecution Agreement; (17) the cost and eect on our reputation
of product safety recalls and alleged defects in products and services; (18) our ability to successfully and cost-eciently restructure operations in various
countries with minimal disruption; (19) our ability to realize production eciencies and to achieve reductions in costs; (20) our ability to develop captive
nancing capability through GM Financial; and (21) signicant increases in pension expense or projected pension contributions. 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, 2017, 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.
Basis of Presentation
The nancial and operational information included in this press release relate to our continuing operations and not our discontinued operations nor assets
and liabilities held for sale relating to the Opel/Vauxhall business and GM Financial's European operations (collectively, our “European Business”). Further,
during the three months ended December 31, 2017, we changed our automotive segments as a result of changes in our organizational structure and the
evolution of our business resulting from the sale of the Opel/Vauxhall Business and the various strategic actions taken in the GMIO region. As a result, our
GMSA and GMIO operating segments are now reported as one, combined reportable international segment, GMI. Our GMNA and GM Financial segments
were not impacted. All periods presented have been recast to reect the changes.
Additional information regarding the sale of our European Business can be found in our publicly led SEC documents and in the investor materials located
at www.gm.com/investors.
General Motors Co.(NYSE: GM), its subsidiaries and joint venture entities
produce and sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC,
Holden, Jiefang and Wuling brands. GM has leadership positions in several of
the world'smost signicantautomotive markets and is committed to lead the
future of personal mobility. 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