Summary
General Motors (GM) reported strong financial performance for the first quarter of 2011, driven by increased automotive sales across its global segments. Total net sales and revenue grew by 15.0% year-over-year to $36.19 billion. This growth was fueled by higher wholesale volumes, favorable vehicle mix, and a positive foreign currency translation effect, particularly in North America and Europe. The company also benefited from the inclusion of GM Financial's revenue and the sale of non-core assets, including its stake in Delphi Automotive LLP and Ally Financial preferred stock, which contributed significant gains to net income. Despite an increase in automotive cost of sales, primarily due to higher production volumes and unfavorable mix, GM's operating income improved, although it was impacted by a $395 million goodwill impairment charge related to its European operations. Net income attributable to common stockholders surged to $3.15 billion, or $1.77 per diluted share, a significant increase from the prior year's $865 million, or $0.55 per diluted share. The company's liquidity remains robust with over $29 billion in available cash and marketable securities, and it continues to focus on debt reduction and optimizing its capital structure.
Financial Highlights
26 data points| Revenue | $36.19B |
| Cost of Revenue | $31.68B |
| Gross Profit | $4.21B |
| Operating Expenses | $35.24B |
| Operating Income | $949.00M |
| Interest Expense | $149.00M |
| Net Income | $3.37B |
| EPS (Basic) | $2.09 |
| EPS (Diluted) | $1.77 |
Key Highlights
- 1Total net sales and revenue increased by 15.0% to $36.19 billion, driven by higher wholesale volumes across segments and the inclusion of GM Financial.
- 2Net income attributable to common stockholders rose significantly to $3.15 billion ($1.77 per diluted share) from $865 million ($0.55 per diluted share) in the prior year.
- 3The company recorded a substantial gain of $1.6 billion from the sale of its interest in Delphi Automotive LLP and a $0.3 billion gain from selling its Ally Financial preferred stock.
- 4Automotive cost of sales increased by 15.0% due to higher production volumes and unfavorable mix, but this was largely offset by revenue growth.
- 5A goodwill impairment charge of $395 million was recorded for the European segment (GME) due to its negative carrying amount and ongoing restructuring.
- 6Liquidity remains strong, with $29.6 billion in cash and marketable securities at the end of the quarter.
- 7GM Financial's results are now fully integrated, contributing $295 million in revenue and $130 million in pre-tax income.