Attached files
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| EX-99.2 - EXHIBIT 99.2 - Q1 2017 HIGHLIGHTS - General Motors Co | gm2017q1consolidatedearnin.htm |
| 8-K - Q1 2017 EARNINGS RELEASE 8-K - General Motors Co | a2017q1earningsrelease8-k.htm |
FIRST-QUARTER
2017 EARNINGS
EBIT-Adj. Margin EBIT-Adj. Adj. Auto FCF EPS Diluted-Adj.
Non-GAAP 8.2% $3.4 B $(0.6) B $1.70
Vs. Q1 2016 +1.1 pts +27.9 % +$0.8 B +34.9 %
Q1 2017 RESULTS OVERVIEW
GM Reports Strong
Net Income, Up 33.5
Percent to $2.6 Billion
• Strong EPS-diluted of $1.70, up 37 percent; first-quarter
record EPS diluted-adjusted of $1.70, up 35 percent
• First-quarter records for revenue, EBIT-adjusted and
EBIT-adjusted margin
• First-quarter records for North America EBIT-adjusted
of $3.4 billion, up 49 percent, and EBIT-adjusted margin
of 11.7 percent, up 3 percentage points
Net Revenue Net Income
Auto Operating
Cash Flow
EPS-Diluted
GAAP $41.2 B $2.6 B $1.4 B $1.70
Vs. Q1 2016 +10.6 % +33.5 % +$2.0 B +37.1 %
In March, Cadillac introduced
Vehicle-to-Vehicle (V2V)
communications in the CTS
performance sedan that can alert
drivers to upcoming potential
hazards, laying the groundwork
for a connected, safer future. In
early April, Cadillac also
announced Super Cruise
automated highway driving
technology – the industry’s rst
true hands-free driving
technology system, which will be
available in the fall of 2017 on the
Cadillac CT6 prestige sedan.
“Our rst-quarter results re ect our resolve to grow pro tably and demonstrate the strong
earnings power of this company. More importantly, we advanced our strategic plan to
transform GM for the long term and unlock more value for our shareholders.”
– Mary Barra, Chairman & CEO
GM agreed to sell its Opel/Vauxhall
subsidiary and GM Financial’s
European operations to PSA Group
to support the company’s focus on
higher-return opportunities. Once
closed, the transaction will
immediately improve GM’s EBIT-
adjusted and adjusted automotive
free cash flow. It also will allow the
company to lower its cash balance
by $2 billion, which it plans to use to
accelerate share buybacks, subject
to market conditions. In connection
with the transaction, GM will take a
primarily non-cash special charge of
approximately $4.5 billion.
Advancing its lead in vehicle
connectivity, in March GM became
the first mass-market automaker to
offer an unlimited data plan. Demand
for the new plan helped make March
the best month ever for data plan
sales. Since its launch, GM has sold
more than 100,000 unlimited data
plans.
GM has more than 5 million OnStar
4G LTE-connected vehicles on the road
today, more than any other
automaker.
2017 Cadillac CTS Performance Sedan
Q1 KEY HIGHLIGHTS
Exhibit 99.1
North America Europe International Ops South America GM Financial (EBT)
Q1 17 Q1 16 Q1 17 Q1 16 Q1 17 Q1 16 Q1 17 Q1 16 Q1 17 Q1 16
3.4 2.3 (0.2) (0.0) 0.3 0.4 (0.1) (0.1) 0.3 0.2
SEGMENT RESULTS (EBIT-ADJUSTED - $B)
Strong volume, pricing
and cost efficiencies
drove EBIT-adjusted
margin up 300 bps YOY.
Q1 2016 included $0.2
billion of restructuring
costs.
The negative Brexit-
related foreign exchange
impact was partially
offset by favorable
pricing on launch
vehicles.
China JV equity income
was $0.5 billion. Lower
volume and unfavorable
mix in international
markets contributed to
lower EBIT-adjusted.
Continued challenging
macro conditions
prevail. Favorable pricing
and volume were offset
by foreign exchange
impact.
Earning assets
continued to grow. Set
all-time revenue
record for a quarter.
“Our strong rst quarter resulted from continued top-line growth and an intense focus on
driving costs lower. As we refresh our crossover portfolio in the next several months, we
expect to stay on track to meet our nancial commitments for the year.”
– Chuck Stevens, Executive Vice President and CFO
Q1 17 Q1 16
Cash and Current Marketable Securities 20.4 18.5
Total Auto Liquidity 34.4 30.6
LIQUIDITY ($B)
In the rst quarter of 2017, GM paid $0.6
billion in common stock dividends. GM
expects to return up to $7 billion to
shareholders by the end of 2017 through
common stock dividends, and through
share buybacks subject to market
conditions.
CAPITAL RETURN
In the first quarter, GM delivered 689,521
total vehicles in the United States, driven
by a 16-percent increase in crossover
deliveries and a 3-percent increase in
truck deliveries. These results included the
best first-quarter retail sales since 2008,
as GM increased U.S. retail market share
to an estimated 16.9 percent, up 0.3
percentage points — the fastest growth
of any full-line automaker.
In China, retail deliveries decreased 5.2
percent to 913,442 vehicles, due to a
reduction in the country’s vehicle tax
purchase incentive.
Chevrolet continued its 16 years of South
American market leadership, delivering
147,000 vehicles, up 10.9 percent
compared to 2016.
For more details on first-quarter sales,
click here.
Q1 VEHICLE SALES Q1 BRAND AND PRODUCT HIGHLIGHTS
To capitalize on the ongoing shift in
consumer preference for sport utility
and multi-purpose vehicles, GM
China will launch 9 new or refreshed
SUVs and MPVs in 2017.
2017 Baojun 510
2018 Chevrolet Traverse
To build on the momentum of the
recently launched Chevrolet Trax and
Equinox, Buick Encore and GMC
Acadia, GM plans to launch three
more all-new crossovers in the U.S. in
2017 — the Chevrolet Traverse, Buick
Enclave and GMC Terrain.
2018 Buick Enclave Avenir
Baojun and Cadillac set first-quarter
sales records in China, up 25.1
percent and 90.5 percent,
respectively. The Baojun 510,
introduced on Feb. 20, sold 23,000
units in the first quarter. The Cadillac
XT5 sold 15,000 units — more than
twice the volume of the SRX that it
replaced.
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
Randy Arickx
GM Investor Relations
313-268-7070
randy.c.arickx@gm.com
Media Investors
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