10-QPeriod: Q2 FY2011

General Motors Co Quarterly Report for Q2 Ended Jun 30, 2011

Filed August 5, 2011For Securities:GM

Summary

General Motors (GM) reported a strong second quarter for 2011, with total net sales and revenue reaching $39.4 billion, a significant 18.7% increase compared to the same period in the prior year. This growth was driven by robust performance across all automotive segments, particularly in North America (GMNA) and International Operations (GMIO), fueled by increased wholesale volumes and favorable pricing and mix. The company also saw a substantial improvement in operating income, which rose to $2.5 billion from $1.9 billion in Q2 2010, reflecting improved operational efficiencies and sales growth. GM Financial, the company's finance arm, contributed positively with its revenue included for the first time, and the company continued to strengthen its balance sheet by repaying debt and managing liquidity effectively. Despite a goodwill impairment charge in Europe, overall profitability and sales momentum indicate a positive trajectory for General Motors during this period.

Financial Highlights

37 data points
Beta

Revenue

$39.37B

13.3% Gross Margin

Net Income

$2.99B

7.6% Net Margin

EPS (Diluted)

$1.54

Total Assets

$150.41B

Cash & Equivalents

$21.00B

Free Cash Flow

$3.89B

Financial Statements
Beta
Revenue$39.37B
Cost of Revenue$33.79B
Gross Profit$5.25B
SG&A Expenses$2.92B
Operating Expenses$36.92B
Operating Income$2.45B
Interest Expense$155.00M
Net Income$2.99B
EPS (Basic)$1.68
EPS (Diluted)$1.54
Shares Outstanding (Basic)1.50B
Shares Outstanding (Diluted)1.65B

Key Highlights

  • 1Total net sales and revenue increased by 18.7% to $39.4 billion for the second quarter of 2011, compared to $33.2 billion in the same period of 2010.
  • 2Operating income grew to $2.5 billion from $1.9 billion year-over-year, reflecting improved sales and operational performance.
  • 3GM Financial's revenue was $330 million in the quarter, contributing to the company's overall financial performance.
  • 4GMNA (North America) and GMIO (International Operations) showed significant revenue growth, driven by increased wholesale volumes and favorable pricing/mix.
  • 5The company's liquidity position strengthened, with total available liquidity reaching $38.7 billion, an increase from $32.5 billion at the end of 2010.
  • 6A goodwill impairment charge of $395 million was recorded in GM Europe (GME) related to accounting standard changes and ongoing restructuring.
  • 7Net income attributable to stockholders significantly increased to $3.0 billion ($1.54 per diluted share) from $1.5 billion ($0.85 per diluted share) in the prior year's quarter.

Frequently Asked Questions

General Motors' revenue growth was primarily driven by increased wholesale volumes across its automotive segments, particularly in GM North America and GM International Operations. This was supported by favorable vehicle pricing, improved vehicle mix, and increased sales of key models like the Chevrolet Cruze and Equinox. The strengthening of foreign currencies against the U.S. dollar also contributed positively through favorable foreign currency translation effects.

GM Financial contributed $330 million in revenue during the second quarter of 2011. The company's automotive finance strategy centers on providing competitive financing options for dealers and customers. By acquiring GM Financial in October 2010, GM aimed to bolster its offerings in leasing and sub-prime financing segments, ensuring availability of credit through business cycles and fostering competition.

Yes, General Motors recorded a goodwill impairment charge of $395 million in its Europe segment (GME) during the first half of 2011, primarily related to accounting standard changes (ASU 2010-28) and ongoing restructuring. While this charge impacted the first half results, the overall profitability for the quarter showed significant year-over-year improvement.

General Motors strengthened its liquidity position considerably. Total available liquidity, including cash, cash equivalents, marketable securities, and available credit facilities, increased to $38.7 billion at June 30, 2011, up from $32.5 billion at December 31, 2010. This improvement was driven by positive cash flows from operations and proceeds from the sale of non-core assets, partially offset by planned capital expenditures.