10-QPeriod: Q3 FY2019

General Motors Co Quarterly Report for Q3 Ended Sep 30, 2019

Filed October 29, 2019For Securities:GM

Summary

General Motors Co. (GM) reported its third-quarter 2019 financial results, indicating a decrease in total net sales and revenue to $35.47 billion from $35.79 billion in the prior year period. While automotive sales saw a slight decline, GM Financial experienced revenue growth. Net income attributable to stockholders rose to $2.35 billion from $2.53 billion, resulting in diluted earnings per share of $1.60, compared to $1.75 in the prior year quarter. The company is navigating ongoing transformation initiatives aimed at cost efficiencies and future mobility solutions. A significant event impacting the quarter was the UAW strike, which caused production stoppages and an estimated $1.3 billion negative impact on GMNA's EBIT-adjusted. Despite this disruption, GM is focused on its strategic plan to redefine personal mobility and achieve operational excellence.

Financial Highlights

43 data points
Beta

Revenue

$35.47B

Net Income

$2.31B

6.5% Net Margin

EPS (Diluted)

$1.60

Total Assets

$231.53B

Cash & Equivalents

$20.05B

Free Cash Flow

$5.18B

Financial Statements
Beta
Revenue$35.47B
Operating Expenses$33.17B
Operating Income$2.30B
Net Income$2.31B
EPS (Basic)$1.62
EPS (Diluted)$1.60
Shares Outstanding (Basic)1.43B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Total net sales and revenue for Q3 2019 were $35.47 billion, a slight decrease from $35.79 billion in Q3 2018.
  • 2Net income attributable to stockholders was $2.35 billion, down from $2.53 billion year-over-year.
  • 3Diluted earnings per share (EPS) was $1.60, a decrease from $1.75 in the prior year period.
  • 4The UAW strike in North America had an estimated negative impact of $1.3 billion on GMNA's EBIT-adjusted in the third quarter.
  • 5GM Financial showed revenue growth, with total revenue increasing to $3.66 billion from $3.52 billion in the prior year quarter.
  • 6Equity income from Automotive China joint ventures decreased to $282 million from $485 million year-over-year.
  • 7The company reported $20.05 billion in cash and cash equivalents as of September 30, 2019.

Frequently Asked Questions

The UAW strike significantly impacted GM's third-quarter results, particularly in North America (GMNA). The company estimates a negative impact of approximately $1.3 billion on GMNA's EBIT-adjusted due to lost vehicle production volumes and parts sales. The strike also had an estimated unfavorable impact of $0.4 billion on net cash provided by operating activities.

GM Financial demonstrated revenue growth. Total revenue for GM Financial increased to $3.66 billion in the third quarter of 2019, up from $3.52 billion in the same period of 2018. This growth was primarily driven by an increase in finance charge income due to expansion in retail and commercial finance receivables portfolios.

For the full year 2019, GM expects diluted earnings per share (EPS) to be between $4.28 and $4.69, and adjusted diluted EPS to be between $4.50 and $4.80. This outlook includes management's estimate of the impact from the UAW strike.

GM is undertaking transformation activities aimed at improving overall business performance. These initiatives include reorganizing global product development, realigning manufacturing capacity in response to market shifts, reducing its salaried workforce, and focusing on cost efficiencies. The company anticipates these efforts will drive significant annual cash savings and is investing in future mobility solutions like electrification and autonomous vehicles.