What was the primary driver for the decrease in net income compared to the prior year?

The decrease in net income was primarily driven by lower automotive sales and revenue, particularly impacted by unfavorable foreign currency translation effects and a challenging economic environment in Europe, which led to reduced sales volumes in that region.

How is GM Financial performing?

GM Financial demonstrated strong performance, with a significant increase in revenue (up 47.6% to $487 million) and income before taxes (up 50.7% to $217 million) for the quarter. This growth was attributed to a larger loan and lease portfolio balance.

What is the company's outlook for the European market?

GM anticipates continued adverse economic conditions in Europe and expects substantial losses in the region for the remainder of 2012. The company is implementing restructuring actions to improve its European operations' competitiveness.

What is the status of GM's pension obligations?

GM continues to address its significant pension obligations. The company is undertaking actions related to its U.S. salaried pension plan, which includes offering lump-sum payments to retirees and purchasing annuities, requiring additional funding estimated between $3.5 billion and $4.5 billion.

GM 10-Q Quarterly Report Q2 FY2012 — Revenue, Net Income, EPS

Summary

General Motors (GM) reported its financial results for the second quarter of 2012, showing a decline in net income attributable to stockholders compared to the same period in the prior year. This was primarily driven by lower automotive sales and revenue, particularly impacted by a challenging European market and unfavorable foreign currency translation. Despite the top-line decline, GM managed to control costs and saw a significant increase in revenue and income from its GM Financial segment, reflecting growth in its financing operations. The company continues to navigate a complex global economic environment, with particular weakness noted in Europe. However, strong performance in international operations, especially in China, and continued growth in GM Financial provided some offset. GM also highlighted ongoing restructuring efforts and strategic alliances, such as the one with PSA Peugeot Citroën, aimed at improving long-term profitability and competitiveness.

Financial Highlights

49 data points

Beta

Revenue

$37.61B

0.1% Gross Margin

Net Income

$1.85B

0.0% Net Margin

EPS (Diluted)

$0.90

Total Assets

$151.99B

Cash & Equivalents

$22.18B

Free Cash Flow

$1.88B

Financial Statements

Beta

Revenue	$37.61B
Cost of Revenue	$32.68B
Gross Profit	$4.45B
Operating Expenses	$35.79B
Operating Income	$1.82B
Interest Expense	$118.00M
Net Income	$1.85B
EPS (Basic)	$0.95
EPS (Diluted)	$0.90
Shares Outstanding (Basic)	1.57B
Shares Outstanding (Diluted)	1.67B

Key Highlights

1Net income attributable to stockholders decreased to $1.85 billion in Q2 2012 from $3.0 billion in Q2 2011.
2Total net sales and revenue decreased by 4.5% year-over-year to $37.61 billion for the second quarter.
3GM Financial revenue significantly increased by 47.6% to $487 million, with income before taxes up 50.7%.
4The European segment (GME) experienced a substantial decline in net sales and revenue (down 21.0%) and reported an adjusted EBIT loss of $361 million.
5International Operations (GMIO) showed strong growth, with net sales and revenue up 8.5% and adjusted EBIT largely stable.
6The company continued to manage its significant pension obligations, with planned significant funding for its U.S. salaried pension plan.
7Goodwill impairment charges of $617 million were recorded in the six months ended June 30, 2012, primarily related to the GME segment.

General Motors Co Quarterly Report for Q2 Ended Jun 30, 2012

Summary

Financial Highlights

Key Highlights

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