Summary
General Motors Co. reported third-quarter and nine-month results for 2012. The company saw a slight increase in total net sales and revenue for the quarter, driven by higher wholesale volumes and favorable pricing and mix, though this was partially offset by unfavorable foreign currency translation. The European segment continued to struggle with declining sales and increased losses due to the weak economic environment. Conversely, the International Operations segment showed strong growth in revenue and significantly improved operating income. Financially, GM generated positive operating cash flow and free cash flow for the nine months ended September 30, 2012. The company's cash and cash equivalents increased significantly from the prior year. GM also made progress in managing its pension obligations, including offering lump-sum distributions and entering into agreements for annuity contracts, which are expected to result in significant charges in the fourth quarter of 2012. The company's credit ratings have seen some upgrades, and it continues to pursue investment-grade status.
Financial Highlights
49 data points| Revenue | $37.58B |
| Cost of Revenue | $32.73B |
| Gross Profit | $4.33B |
| SG&A Expenses | $2.85B |
| Operating Expenses | $35.97B |
| Operating Income | $1.60B |
| Interest Expense | $128.00M |
| Net Income | $1.83B |
| EPS (Basic) | $0.94 |
| EPS (Diluted) | $0.89 |
| Shares Outstanding (Basic) | 1.57B |
| Shares Outstanding (Diluted) | 1.66B |
Key Highlights
- 1Total net sales and revenue for the three months ended September 30, 2012 increased by 2.3% to $37.6 billion, driven by favorable vehicle mix, increased wholesale volumes, and improved pricing.
- 2GM Financial's revenue increased by 31.5% to $514 million for the quarter, with income before taxes rising by 12.4% to $200 million, indicating solid performance from the financing arm.
- 3The GM International Operations (GMIO) segment reported a 10.3% increase in net sales and revenue to $6.7 billion and an 88.8% increase in EBIT-adjusted to $689 million, highlighting strong performance in key growth markets.
- 4GM Europe (GME) continued to face headwinds, with net sales and revenue decreasing by 17.7% to $5.1 billion and an EBIT (loss)-adjusted of $478 million for the quarter, reflecting the ongoing challenging economic conditions.
- 5Net cash provided by operating activities for the nine months ended September 30, 2012 was $9.8 billion, a substantial increase from $6.7 billion in the prior year.
- 6Free cash flow for the nine months ended September 30, 2012 was $3.2 billion, up from $2.1 billion in the comparable prior period.
- 7Goodwill impairment charges increased significantly to $78 million for the three months ended September 30, 2012, primarily within the GMIO segment, compared to nil in the prior year quarter.