10-QPeriod: Q2 FY2013

General Motors Co Quarterly Report for Q2 Ended Jun 30, 2013

Filed July 25, 2013For Securities:GM

Summary

General Motors Co. (GM) reported its second-quarter and year-to-date results for the period ending June 30, 2013. For the quarter, net sales and revenue increased by 3.9% year-over-year to $39.1 billion. Net income attributable to stockholders was $1.41 billion, a decrease from $1.85 billion in the same period last year. Diluted earnings per common share were $0.75, down from $0.90 year-over-year. The company's automotive segment saw a 3.0% increase in net sales and revenue, driven by higher wholesale volumes and favorable pricing and mix, though partially offset by unfavorable foreign currency effects. GM Financial significantly boosted its revenue by 71.7% for the quarter, largely due to the acquisition of Ally Financial's international operations. The company ended the period with a strong liquidity position, with total available liquidity of $34.8 billion.

Financial Highlights

50 data points
Beta

Revenue

$39.08B

13.4% Gross Margin

Net Income

$1.41B

3.6% Net Margin

EPS (Diluted)

$0.75

Total Assets

$163.11B

Cash & Equivalents

$19.70B

Free Cash Flow

$3.00B

Financial Statements
Beta
Revenue$39.08B
Cost of Revenue$33.82B
Gross Profit$5.25B
SG&A Expenses$2.92B
Operating Expenses$37.32B
Operating Income$1.75B
Interest Expense$61.00M
Net Income$1.41B
EPS (Basic)$0.87
EPS (Diluted)$0.75
Shares Outstanding (Basic)1.38B
Shares Outstanding (Diluted)1.68B

Key Highlights

  • 1Total net sales and revenue for the second quarter of 2013 increased by 3.9% to $39.1 billion compared to the same period in 2012.
  • 2Net income attributable to stockholders decreased to $1.41 billion in Q2 2013 from $1.85 billion in Q2 2012.
  • 3Diluted earnings per common share were $0.75 for Q2 2013, down from $0.90 in Q2 2012.
  • 4GM Financial experienced a substantial revenue increase of 71.7% to $836 million in the second quarter, largely driven by the acquisition of Ally Financial's international operations.
  • 5Automotive cost of sales increased by 3.5% in the second quarter, leading to a slight decrease in automotive gross margin by 0.7%.
  • 6The company ended the period with a robust liquidity position, reporting total available liquidity of $34.8 billion.
  • 7Equity income from China joint ventures increased by 26.3% in the second quarter, contributing positively to overall results.

Frequently Asked Questions

GM Financial's revenue surged by 71.7% in the second quarter primarily due to the acquisition of Ally Financial's automotive finance and financial services operations in Europe and Latin America, which significantly expanded its loan and lease portfolios.

The decrease in net income was influenced by several factors, including higher income tax expense (partially due to the release of valuation allowances in the U.S. and Canada), a loss on the extinguishment of debt related to GM Korea's preferred shares, and a slight decrease in automotive gross margin, despite increased sales revenue.

GM is implementing a plan to strengthen its European operations, which includes investments in its product portfolio, a revised brand strategy, cost reductions (including restructuring), and leveraging synergies from its alliance with PSA. The company acknowledges that adverse economic conditions are likely to persist and expects continued losses in the region in the near future.

GM maintains a strong liquidity position with total available liquidity of $34.8 billion at June 30, 2013, comprising cash, marketable securities, and available credit facilities. The company believes this is sufficient to meet its needs, including significant capital expenditures, acquisitions, debt servicing, and dividend payments.