01—Abstract
Summary
Summary of the 10-K filed February 27, 2012. Cited figures are marked; the original filing is the authoritative source.
General Motors (GM) in its 2011 10-K filing demonstrates a significant turnaround following its emergence from Chapter 11 bankruptcy in July 2009.
The company reported a net profit attributable to stockholders of $9.19 billiona for the year ended December 31, 2011, a substantial improvement from the prior years which were heavily influenced by reorganization activities. Total net sales and revenue increased by 10.8% to $150.28 billion, driven by higher wholesale volumes and favorable vehicle pricing, reflecting a recovering automotive market. Geographically, GMNA and GMIO showed strong sales growth, with GMIO benefiting significantly from the rapidly expanding Chinese market, where GM holds the number one market share.
The company continues to invest in developing and advancing its alternative propulsion strategy, including hybrid and electric vehicles, aligning with global trends towards fuel efficiency and reduced emissions. GM Financial, its captive finance arm acquired in October 2010, also contributed positively to revenue. Despite these positive operational trends, the company faces ongoing risks related to cost control, competitive market pressures, and evolving environmental and safety regulations globally.
02—Key points
Key Highlights
- Net income attributable to stockholders of $9.19 billion for the year ended December 31, 2011.
- Total net sales and revenue increased by 10.8% to $150.28 billion, driven by higher wholesale volumes and favorable vehicle pricing.
- GM's global market share increased to 11.9% in 2011.
- Strong sales performance in GM International Operations (GMIO), particularly in China, where GM holds the number one market share.
- GM Financial, acquired in October 2010, contributed positively to revenue and financing options for customers.
- Significant investments in research and development, particularly in alternative propulsion technologies and fuel efficiency.
- Repayment of significant debt obligations, including the UST Credit Agreement and Canadian Loan, demonstrating improved financial health.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, General Motors Co kept $0.06.
- Revenue$150.28B100.0%
- Cost of revenue−$130.39B86.8%
- Gross profit$19.89B13.2%
- Operating costs−$14.23B9.5%
- Operating income$5.66B3.8%
- Interest, other & tax$3.53B2.4%
- Net income$9.19B6.1%
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 27, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $150.28B$135.59B | +10.8% |
| Cost of Revenue | $130.39B$118.77B | +9.8% |
| Gross Profit | $19.89B$16.82B | +18.2% |
| R&D Expenses | $8.10B$6.96B | +16.3% |
| SG&A Expenses | $12.16B— | — |
| Operating Expenses | $144.62B$130.48B | +10.8% |
| Operating Income | $5.66B$5.11B | +10.7% |
| Interest Expense | $744.00M$1.14B | −34.4% |
| Net Income | $9.19B$6.17B | +48.9% |
| EPS (Basic) | $4.94— | — |
| EPS (Diluted) | $4.58— | — |
| Shares Outstanding (Basic) | 1.54B— | — |
| Shares Outstanding (Diluted) | 1.67B— | — |
05—Questions
Frequently Asked Questions
What was GM's financial performance in 2011 compared to previous years?
In 2011, General Motors reported a net profit attributable to stockholders of $9.19 billion on total net sales and revenue of $150.28 billion. This marked a substantial improvement from the prior years, which were significantly impacted by the company's emergence from Chapter 11 bankruptcy in July 2009 and the subsequent reorganization. The company saw increased sales volumes and improved pricing, indicating a positive operational turnaround.
How did GM perform in different geographic regions?
GM experienced strong sales growth in North America (GMNA) and International Operations (GMIO). GMIO's performance was significantly boosted by the rapidly growing Chinese market, where GM holds the leading market share. The company also saw increased sales in South America (GMSA), though GM Europe (GME) faced challenges and recorded an adjusted EBIT loss.
What is GM's strategy regarding new vehicle technologies and fuel efficiency?
GM is heavily investing in its alternative propulsion strategy, focusing on fuel efficiency and developing a wide range of technologies. This includes hybrid vehicles, plug-in hybrid electric vehicles (like the Chevrolet Volt), and battery electric vehicles (with the Chevrolet Spark planned for 2013). The company is committed to meeting stringent government fuel economy and emissions standards globally through technological advancements in conventional powertrains and increased electrification.
What is the status of GM's financial leverage and its relationship with the U.S. Treasury?
GM has made significant progress in reducing its financial leverage. While the company repaid its indebtedness to the U.S. Treasury (UST) under the UST Credit Agreement in April 2010, certain executive compensation and corporate governance provisions from the TARP program continue to apply. The U.S. Treasury still held a substantial equity interest (31.9% as of February 15, 2012), which may influence the company's strategic decisions.
06—Continue