• GM North America EBIT-adjusted best since company was established in 2009, expanding core operating margin for seventh straight quarter year over year
  • GM Europe increased Opel/Vauxhall share in 11 markets and improved operating performance, despite Russia market challenges
  • First quarter net income of $0.9bn, up $0.8bn from first quarter 2014
  • EPS of $0.56, EPS adjusted for special items of $0.86
After some turmoil in the last year, the Q1 2015 results appear to have pleased GM CEO Mary Barra

After some turmoil in the last year, the Q1 2015 results appear to have pleased GM CEO Mary Barra

General Motors has announced first quarter 2015 net income of US$0.9bn, or $0.56 per share including a net loss from special items of $0.5bn. On an operating level, there was some improvement in Europe while South America was flat.

The one off items included $0.4bn related to the decision to change the company’s business model in Russia and a $0.1bn charge related to the estimated costs of the ignition switch compensation programme.

For year on year comparison, first quarter 2014 net income was $0.1bn, ($0.06 a share) after a net loss from special items of $0.4bn and recall-related pre-tax costs of $1.3bn.

The operating income measure - earnings before interest and tax (EBIT) adjusted - was $2.1bn after $0.1bn in restructuring costs. This was well up over Q1 2014's $0.5bn, which included recall-related pre-tax costs of $1.3bn and $0.3bn for restructuring.

Revenue was down to $35.7bn compared to $37.4bn a year ago.  

Segment results

GM North America reported EBIT-adjusted of $2.2bn versus $0.6bn in Q1 2014 which included a $1.3bn pre-tax charge for recalls.

GM Europe reported an EBIT-adjusted loss of $(0.2)bn, an improvement over Q1 2014's $(0.3)bn in red ink which included $0.2bn for restructuring.

GM International Operations reported EBIT-adjusted of $0.4bn, up from $0.3bn.

GM South America EBIT-adjusted loss of $(0.2)bn was roughly the same as in the first quarter of 2014.  

GM Financial reported earnings before tax of $0.2bn, matching its results for the first quarter of 2014.

"Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year," said GM CEO Mary Barra in a statement.

"Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value."

"Key vehicles like our recently launched full and mid-size trucks, and our cost discipline helped us deliver a solid quarter," said CFO Chuck Stevens.

"We continue to take decisive actions to address issues head-on and to drive the company to generate strong results."

The automaker reaffirmed its 2015 annual outlook announced on 14 January. GM expects its total EBIT adjusted and EBIT-adjusted margin to increase in 2015, compared to 2014, after adjusting 2014 for the impact of recall costs, with improved automotive results anticipated in all regions.

Show the press release

GM Reports Solid First Quarter Operating Performance

Reaffirms 2015 outlook

2015-04-23

  • EBIT-adjusted of $2.1 billion, up $0.3 billion from Q1 2014, excluding recalls
  • Repurchased 10 million shares for approximately $0.4 billion
  • GM North America EBIT-adjusted best since company was established in 2009, expanding core operating margin for seventh straight quarter year over year
  • GM Europe increased Opel/Vauxhall share in 11 markets and improved operating performance, despite Russia market challenges
  • First quarter net income of $0.9 billion, up $0.8 billion from first quarter 2014
  • EPS of $0.56, EPS adjusted for special items of $0.86

DETROIT – General Motors Co. (NYSE: GM) today announced first quarter net income attributable to common stockholders of $0.9 billion, or $0.56 per diluted share. The current quarter included a net loss from special items of $0.5 billion, or $(0.30) per diluted share.

Special items in the quarter included $0.4 billion related to the decision to change the company’s business model in Russia and $0.1 billion for an adjustment to the estimated costs of the ignition switch compensation program.

In the first quarter of 2014, GM’s net income attributable to common stockholders was $0.1 billion, or $0.06 per diluted share, including a net loss from special items of $0.4 billion or $(0.23) per diluted share, and the impact of recall-related pre-tax costs of $1.3 billion, or $(0.48) per diluted share.

Earnings before interest and tax (EBIT) adjusted was $2.1 billion and included the impact of $0.1 billion in restructuring costs. This compares to the first quarter of 2014, when the company recorded EBIT-adjusted of $0.5 billion, which included recall-related pre-tax costs of $1.3 billion and $0.3 billion in restructuring costs.

Net revenue in the first quarter of 2015 was $35.7 billion, compared to $37.4 billion in the first quarter of 2014.  

“Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year,” said GM CEO Mary Barra. “Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value.”

GM Results Overview (in billions except for per share amounts and ROIC)

 

Q1 2015

Q1 2014

Revenue

$35.7

$37.4

Net income attributable to common stockholders

$0.9

$0.1

Earnings per share (EPS) diluted

$0.56

$0.06

Impact of special items on EPS diluted

$(0.30)

$(0.23)

EBIT-adjusted

$2.1    

$0.5

Automotive net cash flow from operating activities

$0.0

$2.0

Adjusted automotive free cash flow

$(1.7)

$0.2

% Return on Invested Capital (ROIC)

19.5

16.9

 

Segment Results

  • GM North America reported EBIT-adjusted of $2.2 billion. This compares with EBIT-adjusted of $0.6 billion in the first quarter of 2014, which included the impact of a $1.3 billion pre-tax charge for recall costs.
  • GM Europe reported EBIT-adjusted of $(0.2) billion. This compares with EBIT-adjusted of $(0.3) billion in the first quarter of 2014, which included
    $0.2 billion for restructuring costs.
  • GM International Operations reported EBIT-adjusted of $0.4 billion, compared with EBIT-adjusted of $0.3 billion in the first quarter of 2014.
  • GM South America reported EBIT-adjusted of $(0.2) billion, approximately equal to the first quarter of 2014.  
  • GM Financial reported earnings before tax of $0.2 billion, matching its results for the first quarter of 2014. 

“Key vehicles like our recently launched full and mid-size trucks, and our cost discipline helped us deliver a solid quarter,” said Chuck Stevens, GM executive vice president and chief financial officer. “We continue to take decisive actions to address issues head-on and to drive the company to generate strong results.”

Cash Flow, Capital Return, Liquidity and ROIC

First quarter automotive cash flow from operating activities of $0.0 billion and adjusted automotive free cash flow of $(1.7) billion, were down from $2.0 billion and $0.2 billion a year ago, respectively. The declines in automotive operating and adjusted automotive free cash flows were primarily related to one extra weekly payment cycle to suppliers during the quarter compared with the same quarter a year ago, and cash payments related to recalls and restructuring.

Since announcing its $5 billion common stock repurchase program on March 9, 2015, GM has repurchased 19.4 million shares through April 21. Of this total, 10 million shares were repurchased through the March 31 trading date for approximately $0.4 billion. Additionally, GM paid common stock dividends of approximately $0.5 billion to shareholders during the quarter.

GM ended the quarter with strong total automotive liquidity of $34.2 billion.  Automotive cash and marketable securities was $22.1 billion compared with $25.2 billion at year-end 2014.

As previously announced, GM will reinvest in its business with the objective of driving 20 percent or higher average return on invested capital (ROIC) through investments in world-class vehicles and leading technology. Beginning this quarter, the company will report trailing four quarter ROIC. On this basis, ROIC at the end of the quarter was 19.5 percent, compared to 16.9 percent at the end of the first quarter of 2014.

Based on its first quarter results, the company reaffirmed the 2015 annual outlook it communicated on January 14. GM expects its total EBIT adjusted and EBIT-adjusted margin to increase in 2015, compared to 2014, after adjusting 2014 for the impact of recall costs, with improved automotive results anticipated in all regions.

Original source: GM