Summary
General Motors Co. (GM) reported solid third-quarter and year-to-date results for 2018, driven by strong performance in its North America segment and increased contributions from GM Financial. Total net sales and revenue for the third quarter increased by 6.4% year-over-year to $35.8 billion, with Automotive sales up 5.9% and GM Financial up 11.3%. Net income attributable to stockholders was $2.5 billion for the quarter, a significant turnaround from a net loss of $3.0 billion in the same period of 2017, primarily due to the absence of charges related to the sale of European operations. Looking at the nine-month period, total net sales and revenue rose by 0.7% to $108.7 billion. Net income attributable to stockholders for the first nine months was $5.9 billion, compared to $1.3 billion in the prior year. The company highlighted its strategic focus on higher-margin products and markets, alongside continued investments in technology and innovation, particularly in autonomous vehicle development through GM Cruise. Despite ongoing global market challenges, GM is demonstrating resilience and a clear path towards its long-term objectives, including targeted core margins and cost savings.
Financial Highlights
44 data points| Revenue | $35.79B |
| Operating Expenses | $34.18B |
| Operating Income | $1.61B |
| Net Income | $2.53B |
| EPS (Basic) | $1.77 |
| EPS (Diluted) | $1.75 |
| Shares Outstanding (Basic) | 1.41B |
| Shares Outstanding (Diluted) | 1.43B |
Key Highlights
- 1Total net sales and revenue for Q3 2018 increased by 6.4% to $35.8 billion, with Automotive sales up 5.9% and GM Financial up 11.3%.
- 2Net income attributable to stockholders for Q3 2018 was $2.5 billion, a substantial improvement from a net loss of $3.0 billion in Q3 2017, largely due to the absence of discontinued operations charges.
- 3For the nine months ended September 30, 2018, net income attributable to stockholders was $5.9 billion, compared to $1.3 billion in the same period of 2017.
- 4GMNA (General Motors North America) segment continues to be a strong performer, with EBIT-adjusted increasing by 36.6% year-over-year in Q3 2018.
- 5GM Financial demonstrated robust growth, with revenue increasing by 11.3% in Q3 and earnings before income taxes-adjusted (EBIT-adjusted) growing by 60.6%.
- 6The company has actively managed its capital structure, including issuing $2.1 billion in senior unsecured notes and repurchasing shares under its stock repurchase program.
- 7GM Cruise is receiving significant investment, with SoftBank investing $0.9 billion and Honda contributing through equity and development partnerships, signaling continued commitment to autonomous vehicle technology.