01—Abstract
Summary
Summary of the 10-K filed February 10, 2021. Cited figures are marked; the original filing is the authoritative source.
General Motors Company (GM) reported its 2020 annual results, marked by significant impacts from the COVID-19 pandemic.
Despite a challenging year, the company demonstrated resilience and maintained its market leadership in North America. GM's strategic focus remains on accelerating its transition to an all-electric and autonomous vehicle future, with substantial investments planned in these areas through 2025. The company's performance was influenced by pandemic-related production suspensions and austerity measures, though operations largely normalized by mid-2020.
Looking ahead, GM anticipates a positive outlook for 2021, projecting earnings per share between $4.50a and $5.25, while also acknowledging the short-term impact of the ongoing global semiconductor supply shortage. The company continues to navigate market and operational challenges while prioritizing its long-term vision for personal mobility.
02—Key points
Key Highlights
- General Motors (GM) navigated the COVID-19 pandemic in 2020, with operations largely resuming by mid-year after initial suspensions.
- The company maintained its market share leadership in the United States, despite a decline in overall industry sales.
- GM is heavily investing in its future, committing $27 billion to electric and autonomous vehicle technologies through 2025, with plans to launch 30 new EV models globally.
- The company anticipates a short-term impact from the global semiconductor shortage, estimating a negative EBIT-adjusted impact of $1.5 billion to $2.0 billion in 2021.
- GM Financial saw an increase in EBT-adjusted, primarily driven by lower interest expenses and higher lease termination gains.
- The company's Cruise segment continues to advance autonomous vehicle testing and development, with significant investment from Microsoft.
- GM expects 2021 EPS to be in the range of $4.50 to $5.25, with an expected EBIT-adjusted between $10.0 billion and $11.0 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2020, General Motors Co kept $0.05.
- Revenue$122.48B100.0%
- Cost of revenue−$97.54B79.6%
- Gross profit$24.95B20.4%
- Operating costs−$18.31B15.0%
- Operating income$6.63B5.4%
- Interest, other & tax−$207.0M0.2%
- Net income$6.43B5.2%
Where FY2020 revenue went
$122.48B- Cost of revenue: $97.54B, 80% of revenue
- Net income: $6.43B, 5.2% of revenue
- SG&A: $7.04B, 5.7% of revenue
- Other operating costs: $11.27B, 9.2% of revenue
Kept 5.2% as net incomeNet income $6.43B · 5.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2020filed February 10, 2021Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Revenue | $122.48B$137.24B | −10.7% |
| Cost of Revenue | $97.54B$110.65B | −11.8% |
| Gross Profit | $24.95B$26.59B | −6.2% |
| SG&A Expenses | $7.04B$8.49B | −17.1% |
| Operating Expenses | $115.85B$131.76B | −12.1% |
| Operating Income | $6.63B$5.48B | +21.0% |
| Interest Expense | $4.12B$4.42B | −6.8% |
| Net Income | $6.43B$6.67B | −3.6% |
| EPS (Basic) | $4.36$4.62 | −5.6% |
| EPS (Diluted) | $4.33$4.57 | −5.3% |
| Shares Outstanding (Basic) | 1.43B1.42B | +0.6% |
| Shares Outstanding (Diluted) | 1.44B1.44B | +0.2% |
05—Questions
Frequently Asked Questions
What was GM's financial performance in 2020, considering the COVID-19 pandemic?
In 2020, GM experienced impacts from the COVID-19 pandemic, including production suspensions. However, operations resumed by mid-year, and the company managed to maintain its market share in key regions like North America. Despite revenue declines, the company's strategic focus on electrification and autonomous vehicles remained a priority.
What is GM's outlook and strategy for electric and autonomous vehicles?
GM is aggressively pursuing a future in electric and autonomous vehicles, committing $27 billion through 2025 to develop 30 new global EV models. Key developments include investments in battery technology (Ultium) and autonomous vehicle testing for the Cruise segment, with an aim for commercial deployment.
How is the global semiconductor shortage expected to affect GM?
GM expects the ongoing global semiconductor supply shortage to have a short-term impact on its business, estimating a negative EBIT-adjusted impact of $1.5 billion to $2.0 billion in 2021. The company is prioritizing production of its high-demand trucks, SUVs, and electric vehicles despite this challenge.
What was the financial performance of GM Financial in 2020?
GM Financial reported an increase in EBT-adjusted for 2020, primarily due to lower interest expenses resulting from declining benchmark interest rates and higher gains from lease terminations. Used vehicle prices outperformed residual value estimates, contributing positively to the segment's results.
06—Continue