Summary
General Motors Co. (GM) reported its 2017 full-year financial results, highlighted by a significant strategic divestiture: the sale of its Opel and Vauxhall businesses in Europe. This transaction, which closed in stages during 2017, was presented as a discontinued operation, impacting the reported financial statements. The company also refined its segment reporting, combining GM South America and GM International Operations into a single GM International (GMI) segment. Operationally, GM experienced a slight decrease in total net sales and revenue compared to 2016, driven primarily by lower wholesale volumes in its North America segment. However, the company maintained strong EBIT-adjusted margins in GMNA. GM Financial continued its growth trajectory, showing a significant increase in revenue and earnings before income taxes-adjusted, driven by expanded leasing and prime lending programs. Looking ahead, GM remains focused on its long-term strategy of transforming into a leader in future mobility, emphasizing zero crashes, zero emissions, and zero congestion, while also aiming for 10% core EBIT-adjusted margins.
Financial Highlights
53 data points| Revenue | $145.59B |
| Cost of Revenue | $116.23B |
| Gross Profit | $29.36B |
| SG&A Expenses | $9.57B |
| Operating Expenses | $136.93B |
| Operating Income | $8.66B |
| Interest Expense | $3.14B |
| Net Income | -$3.86B |
| EPS (Basic) | $-2.65 |
| EPS (Diluted) | $-2.60 |
| Shares Outstanding (Basic) | 1.47B |
| Shares Outstanding (Diluted) | 1.49B |
Key Highlights
- 1GM completed the sale of its European Opel/Vauxhall businesses to PSA Group, presenting these as discontinued operations.
- 2The company reorganized its reporting segments, combining GM South America and GM International Operations into a single GM International (GMI) segment.
- 3Total net sales and revenue decreased by 2.4% year-over-year, largely due to lower wholesale volumes in the North American segment.
- 4GM North America (GMNA) maintained strong EBIT-adjusted margins of 10.7%, with expectations to sustain 10% in 2018.
- 5GM Financial showed substantial growth, with revenue increasing 35.3% and adjusted earnings before income taxes increasing 56.7% year-over-year.
- 6The company's investment in autonomous technology and future mobility solutions continued, with testing of autonomous vehicles on public roads.
- 7GM returned $6.7 billion to shareholders through dividends and share repurchases in 2017.