General Motors (GM) has reported a 14% fall in net profits during the first three months of 2013, as its European operations were hit by the region's economic crisis.

A 12.5% fall in income in North America also contributed to profits falling to $865m.

GM's first quarter income fell in spite of a 3.6% rise in the number of vehicles sold, to 2.3m.

“The year is off to a solid start as we increased our global share with strong new products that are attracting customers around the world,” said chairman and CEO Dan Akerson.

“In addition, we saw progress in Europe thanks to strong cost actions and great vehicles like the Opel Adam and Mokka.”

For the full GM statement, click on 'press release' below

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GM Reports First Quarter Net Income of $0.9 Billion

2013-05-02

  • EPS of $0.58 including net loss from special items of $0.09 per share 
  • EBIT-adjusted of $1.8 billion

 

DETROIT – General Motors Co. (NYSE: GM) today announced first quarter net income attributable to common stockholders of $0.9 billion, or $0.58 per fully diluted share. These results include a net loss from special items that reduced net income by $0.2 billion, or $0.09 per fully diluted share.

In the first quarter of 2012, GM’s net income attributable to common stockholders was $1.0 billion, or $0.60 per fully diluted share, including a net loss from special items of $0.6 billion or $0.33 per share.

Net revenue in the first quarter of 2013 was $36.9 billion, compared to $37.8 billion in the first quarter of 2012. Earnings before interest and tax (EBIT) adjusted was $1.8 billion, compared to $2.2 billion the first quarter of 2012. First quarter EBIT-adjusted results for 2013 include the impact of $0.1 billion in restructuring costs.

“The year is off to a solid start as we increased our global share with strong new products that are attracting customers around the world,” said Dan Akerson, GM chairman and CEO. “In addition, we saw progress in Europe thanks to strong cost actions and great vehicles like the Opel Adam and Mokka.”

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

 

Q1 2013

Q1 2012

Revenue

$36.9   

$37.8   

Net income attributable to common stockholders

$0.9   

$1.0   

Earnings per share (EPS) fully diluted

$0.58 

$0.60 

Impact of special items on EPS fully diluted

$(0.09)

$(0.33)

 

 

 

EBIT-adjusted

$1.8   

$2.2   

   

Automotive net cash flow from operating activities

$0.5   

$2.3   

Adjusted automotive free cash flow

$(1.3)  

$0.3   

 

Segment Results

Beginning this quarter, the company will report segment revenues and profits based on the geographic region in which a vehicle is sold. Previously, segment results included the impacts of inter-segment sales and profits. Prior year segment results have been reclassified so all information is shown on a comparable basis. Financial results for Chevrolet Europe continue to be recorded in GM International Operations. Consolidated results are unaffected by this change.

  • GM North America reported EBIT-adjusted of $1.4 billion, compared with $1.6 billion in the first quarter of 2012.
  • GM Europe reported an EBIT-adjusted of $(0.2) billion, compared with $(0.3) billion in the first quarter of 2012.
  • GM International Operations reported EBIT-adjusted of $0.5 billion, compared with $0.5 billion in the first quarter of 2012.
  • GM South America broke even on an EBIT-adjusted basis, compared with EBIT-adjusted of $0.2 billion in the first quarter of 2012.
  • GM Financial earnings before tax was $0.2 billion for the quarter, compared to $0.2 billion in the first quarter of 2012.

Cash Flow and Liquidity

For the quarter, automotive cash flow from operating activities was $0.5 billion and automotive free cash flow adjusted was $(1.3) billion. The change in year-over-year cash flow was primarily the result of lower earnings and a series of timing-related items that GM expects to reverse during the balance of the year.

GM ended the quarter with very strong total automotive liquidity of $35.3 billion. Automotive cash and marketable securities was $24.3 billion compared with $26.1 billion at year-end 2012.

“In the automotive business, outstanding product is what wins,” said Dan Ammann, GM senior vice president and CFO. “With more than 40 new vehicle introductions this year globally, our focus will be on flawless launches of the vehicles that will drive results this year and into 2014.”

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* GM-2013-Q1-Press-Release.pdf
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* GM-2013-Q1-Chart-Set.pdf
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* 2013-Q1-Financial-Highlights.pdf
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Original source: GM