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| EX-99.2 - EXHIBIT 99.2 - Q3 2017 HIGHLIGHTS - General Motors Co | a2017q3consolidatedearning.htm |
| 8-K - Q3 2017 EARNINGS RELEASE 8-K - General Motors Co | a2017q3earningsrelease8-k.htm |
THIRD-QUARTER 2017 EARNINGS
FROM CONTINUING OPERATIONS
EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS Diluted-adj.
Non-GAAP 7.5% $2.5 B $(1.0) B $1.32
Vs. Q3 2016 (1.9) pts (31.1) % $(5.1) B (22.8)%
Q 3 2 0 1 7 R E S U LT S O V E R V I E W
GM Reports Income of
$0.1 Billion and EBIT-
adjusted of $2.5 Billion
from Continuing Operations
• Income from continuing operations impacted by
$2.3 billion non-cash charge related to deferred tax
assets no longer realizable due to Opel/Vauxhall sale
• EPS-diluted of $0.08 and EPS diluted-adj. of $1.32, from
continuing operations
• Profitable in all business segments for the first time
since Q4 2014
Net Revenue Income Auto Operating Cash Flow EPS-Diluted
GAAP $33.6 B $0.1 B $1.1 B $0.08
Vs. Q3 2016 (13.5) % (95.8) % $(5.0) B (95.5) %
“We delivered solid results even with planned, lower third-quarter production in North America. We are managing the business with discipline to drive strong performance today, while investing in higher-return opportunities, including those that will shape the future of transportation.”
– Mary Barra, Chairman and CEO
IMPACT OF OPEL / VAUXHALL SALE
On a consolidated basis, GM reported a
net loss of $3.0 billion for the third
quarter, driven primarily by a charge of
$5.4 billion resulting from the sale of
Opel / Vauxhall.
The charge, a majority of which is non-
cash, includes approximately $4.3 billion
of unrealizable deferred tax assets,
approximately $1.5 billion related to
pensions and other net charges for
working capital adjustments and costs
to support the separation of operations -
partially o set by proceeds of the sale.
In September, Chairman and CEO Mary
Barra shared GM’s vision for a world
with zero crashes, zero emissions and
zero congestion. To support this vision,
GM outlined its all-electric path to zero
emissions, announcing it will launch at
least 20 electric vehicles by 2023,
including two in the next 18 months.
GM and Cruise remain focused on
developing self-driving all-electric cars
to deploy at scale — to save lives, lower
emissions and reduce congestion. In
September, they unveiled the world’s
rst mass-producible self-driving car.
GM believes this autonomous vehicle,
TECHNOLOGY AND INNOVATION
the third-generation test vehicle
produced in just 14 months, will meet
t h e r e d u n d a n c y a n d s a f e t y
requirements necessary to operate
without a driver. A critical proof point
of this e ort is the testing of self-
driving electric vehicles in the
challenging driving environment of
San Francisco, and deploying them to
transport employees who use a ride-
hailing app called Cruise Anywhere.
A d d i t i o n a l l y i n O c t o b e r, G M
announced the acquisition of LIDAR
technology company Strobe, Inc.
Strobe’s engineering talent will help to
de ne and develop next-generation
LIDAR solutions for self-driving
vehicles.
GM launched Super Cruise, a hands-
free driving assistance technology, on
the Cadillac CT6 in September and
began a coast-to-coast demonstration
that saw 12 CT6s travel from New York
to Los Angeles.
Third-generation self-driving test vehicle
FROM CONTINUING OPERATIONS
Super Cruise hand-free driver assist technology
Exhibit 1
Exhibit 99.1
North America International Ops South America GM Financial (EBT)
Q3 17 Q3 16 Q3 17 Q3 16 Q3 17 Q3 16 Q3 17 Q3 16
2.1 3.6 0.3 0.2 0.1 (0.1) 0.3 0.2
Solid EBIT-adjusted and
8.3 percent margins despite a
planned 26 percent reduction
in wholesale volumes
compared to Q3 2016.
Another quarter of strong
China JV equity income of
$0.5 billion.
Achieved rst protable
quarter since Q4 2014, on
improved volume and
market share in Brazil.
In Q3, posted record
revenues of $3.2 billion.
Continued strong growth
of earning assets, up
31 percent vs. Q3 2016.
“Solid performance in all operating segments led to a very good quarter. With an aggressive vehicle launch cadence through the fourth quarter and an ongoing intense focus on costs, we project strong results through the end of the year.”
– 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 Denali
Q3 17 Q3 16
Cash and Current Marketable Securities 17.3 21.5
Total Auto Liquidity 31.4 35.7
Planned downtime in North American
operations, including six weeks in full-
size truck plants, contributed to
reduced wholesale volume of 268,000
units, or 26 percent compared to Q3
2016. The downtime lowered U.S. dealer
inventory by 160,000 units to 821,000
as of Sept. 30, compared to June 30.
WHOLESALE VOLUME
2017 VEHICLE LAUNCHES
2018 Buick Enclave
To build on the momentum of the
recently launched Chevrolet Equinox
and Traverse, GM launched two more
all-new crossovers in the U.S. in the
third quarter — the Buick Enclave and
GMC Terrain. Altogether this year, GM
has introduced ve all-new models in
the crossover segment, allowing GM to
continue capitalizing on the growing
shift in consumer preference for utility
vehicles.
Q3 VEHICLE SALES
AUTO CASH AND LIQUIDITY FROM CONTINUING OPERATIONS ($B)
GM delivered 781,056 total vehicles in
the third quarter in the United States.
Results were led by a 25-percent
increase in retail crossover sales — the
best third-quarter performance ever
for these vehicles.
A lso in the thi rd quar ter, GM
introduced ve new or refreshed
models in China, with six more
launching in Q4, including the Buick
GL6, Excelle GT and Excelle GX, Wuling
S3 and the Cadillac XT5.
In China, GM deliveries of 982,311
vehicles set a third-quarter record, up
12.3 percent versus the third quarter of
2016. Strong sales of Baojun (up 57%),
Cadillac (up 42%), Chevrolet (up 17%)
and Buick (up 7%) led the way and
helped GM China gain market share in
the quarter.
South America delivered 179,421
vehicles in the quarter, up 17.6 percent,
compared to industry growth of 16.1
percent.
For more details on third-quarter sales,
click here.
In September, Chevrolet announced
that the Bolt EV, the first affordable
long-range electric car, is now available
at certified dealerships nationwide.
GM’s U.S. daily rental sales were under
10 percent of total vehicle sales for the
second consecutive quarter.
Baojun E100
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 GM Financial’s European nancing subsidiaries and branches to the Groupe PSA,
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), 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