01—Abstract
Summary
Summary of the 10-K filed February 6, 2019. Cited figures are marked; the original filing is the authoritative source.
General Motors Company (GM) demonstrated resilience in its 2018 fiscal year, reporting total net sales and revenue of $147.0 billiona.
The company generated significant income from continuing operations, amounting to $8.1 billionb, resulting in diluted earnings per share of $5.53. GM navigated a challenging automotive market with a strategic focus on transformation and cost efficiencies, including significant restructuring actions announced in late 2018 to optimize manufacturing capacity and workforce. The company's commitment to future mobility is evident in its investments in electric and autonomous vehicle technology, with significant progress in the Cruise AV development and partnerships, aiming for a "zero crashes, zero emissions, zero congestion" future.
Despite global economic headwinds and increased competition, GM maintained a strong financial footing, supported by its captive finance arm, GM Financial, which saw revenue growth. The company continued its capital allocation strategy, including share repurchases and dividend payments, while managing its significant investments in advanced technologies and ongoing operational improvements. Investors should note the ongoing transformation efforts and associated charges, as well as the company's strategic focus on higher-margin vehicles like SUVs and trucks, which remain crucial for profitability.
02—Key points
Key Highlights
- Total net sales and revenue reached $147.0 billion for the fiscal year 2018.
- Income from continuing operations was $8.1 billion, with diluted earnings per share of $5.53.
- The company announced significant transformation actions in late 2018, including workforce reductions and manufacturing capacity realignments, with substantial cost savings expected.
- GM is actively investing in electric and autonomous vehicle technologies, notably through its Cruise AV development and strategic partnerships.
- GM Financial, the company's captive finance arm, reported revenue growth and contributed significantly to overall performance.
- The company maintained strong liquidity with total available liquidity of $36.1 billion at year-end 2018.
- The report details ongoing legal matters and contingent liabilities, including those related to ignition switch recalls and Takata airbag inflators.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2018, General Motors Co kept $0.05.
- Revenue$147.05B100.0%
- Cost of revenue−$120.66B82.1%
- Gross profit$26.39B17.9%
- Operating costs−$21.95B14.9%
- Operating income$4.45B3.0%
- Interest, other & tax$3.57B2.4%
- Net income$8.01B5.4%
Where FY2018 revenue went
$147.05B- Cost of revenue: $120.66B, 82% of revenue
- Operating income: $4.45B, 3.0% of revenue
- SG&A: $9.65B, 6.6% of revenue
- Other operating costs: $12.30B, 8.4% of revenue
Kept 3.0% as operating incomeOperating income $4.45B · 3.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2018filed February 6, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $147.05B$145.59B | +1.0% |
| Cost of Revenue | $120.66B$116.23B | +3.8% |
| Gross Profit | $26.39B$29.36B | −10.1% |
| SG&A Expenses | $9.65B$9.57B | +0.8% |
| Operating Expenses | $142.60B$136.93B | +4.1% |
| Operating Income | $4.45B$8.66B | −48.7% |
| Interest Expense | $3.88B$3.14B | +23.5% |
| Net Income | $8.01B-$3.86B | +307.4% |
| EPS (Basic) | $5.61$-2.65 | +311.7% |
| EPS (Diluted) | $5.53$-2.60 | +312.7% |
| Shares Outstanding (Basic) | 1.41B1.47B | −3.7% |
| Shares Outstanding (Diluted) | 1.43B1.49B | −4.1% |
05—Questions
Frequently Asked Questions
What was General Motors' financial performance in 2018?
In 2018, General Motors reported total net sales and revenue of $147.0 billion and income from continuing operations of $8.1 billion, resulting in diluted earnings per share of $5.53. The company's EBIT-adjusted was $11.8 billion.
What are GM's strategic priorities for the future?
GM's strategic priorities include achieving a "zero crashes, zero emissions, zero congestion" vision through investments in electric and autonomous vehicle technology, strengthening its core business by delivering quality vehicles and improving customer experience, growing its brands, and making strategic decisions about market and product investments. The company aims for 10% core margins on an EBIT-adjusted basis.
What restructuring actions did GM undertake in 2018?
GM announced significant transformation actions in late 2018, including reorganizing global product development, realigning manufacturing capacity due to declining passenger car volumes, and reducing its salaried workforce. These actions are expected to drive substantial cost efficiencies and savings.
How is GM Financial performing?
GM Financial, GM's captive finance company, showed strong performance with revenue increasing to $14.0 billion in 2018. Its earnings before income taxes-adjusted also grew significantly, indicating a healthy contribution to the overall company results.
06—Continue