10-Q/APeriod: Q1 FY2013

General Motors Co Quarterly Report (Amendment) for Q1 Ended Mar 31, 2013

Filed May 9, 2013For Securities:GM

Summary

General Motors (GM) reported its first quarter 2013 results, showing a decrease in net sales and revenue compared to the prior year, primarily driven by lower wholesale volumes in North America and Europe, and unfavorable foreign currency movements. Net income also declined, impacted by these revenue pressures and increased income tax expenses. Despite the top-line decline, GM Financial demonstrated strong revenue growth, indicating the increasing importance of its financing arm. The company is actively managing its operational costs and restructuring efforts, particularly in Europe, to improve profitability. Significant capital expenditures are planned for reinvestment in the business, especially for new technology and product development, while liquidity remains a focus with substantial cash reserves and available credit facilities.

Financial Highlights

50 data points
Beta

Revenue

$36.88B

11.6% Gross Margin

Net Income

$1.18B

3.2% Net Margin

EPS (Diluted)

$0.58

Total Assets

$153.78B

Cash & Equivalents

$20.64B

Free Cash Flow

-$1.12B

Financial Statements
Beta
Revenue$36.88B
Cost of Revenue$32.62B
Gross Profit$4.27B
SG&A Expenses$2.95B
Operating Expenses$35.92B
Operating Income$959.00M
Interest Expense$91.00M
Net Income$1.18B
EPS (Basic)$0.63
EPS (Diluted)$0.58
Shares Outstanding (Basic)1.37B
Shares Outstanding (Diluted)1.51B

Key Highlights

  • 1Total net sales and revenue decreased by 2.3% to $36.884 billion in Q1 2013 compared to $37.759 billion in Q1 2012.
  • 2Net income attributable to stockholders decreased to $1.175 billion ($0.58 per diluted share) in Q1 2013 from $1.315 billion ($0.60 per diluted share) in Q1 2012.
  • 3GM Financial revenue increased by 25.3% to $540 million, driven by growth in its loan and lease portfolios.
  • 4The company reported goodwill impairment charges of $0 in Q1 2013, compared to $617 million in Q1 2012, primarily related to European and Korean operations.
  • 5Cash and cash equivalents increased to $20.643 billion at March 31, 2013, up from $18.422 billion at December 31, 2012, indicating a healthy liquidity position.
  • 6Automotive cost of sales decreased slightly by 0.9%, but automotive gross margin saw a significant decrease of 15.6%, indicating pressure on profitability from sales declines and unfavorable mix.
  • 7Equity income from China JVs increased by 31.2% to $555 million, highlighting the growing importance of the Chinese market.

Frequently Asked Questions

In the first quarter of 2013, General Motors experienced a decrease in net sales and revenue, falling by 2.3% to $36.884 billion compared to the same period in 2012. Net income attributable to stockholders also declined to $1.175 billion, down from $1.315 billion in the prior year. This was partly due to lower vehicle sales volumes and unfavorable foreign currency effects.

GM Financial showed strong performance with a revenue increase of 25.3% to $540 million, driven by growth in its loan and lease portfolios. This segment's increasing contribution is a positive sign for the company's diversified revenue streams.

Profitability was impacted by a decrease in automotive gross margin by 15.6%, largely due to lower sales volumes and an unfavorable vehicle mix. Additionally, there was a significant increase in income tax expense, which rose by 89.4%.

General Motors maintained a strong liquidity position, with cash and cash equivalents increasing to $20.643 billion as of March 31, 2013. The company also has significant availability under its credit facilities, totaling $11.0 billion, indicating sufficient financial flexibility.