10-QPeriod: Q1 FY2021

General Motors Co Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 5, 2021For Securities:GM

Summary

General Motors Co. reported strong financial results for the first quarter of 2021, demonstrating a significant recovery from the prior year. Total net sales and revenue were $32.47 billion, a slight decrease from $32.71 billion in Q1 2020, but operating income saw a substantial increase to $3.28 billion from $657 million year-over-year. Net income attributable to stockholders surged to $3.02 billion, or $2.03 per diluted share, a dramatic improvement from $247 million, or $0.17 per diluted share, in the same period last year. The company's performance was bolstered by robust demand and favorable pricing, particularly in its North American market. Despite facing headwinds from the global semiconductor shortage, GM prioritized production of its high-margin trucks and SUVs, and is actively investing in its electric and autonomous vehicle segments. The company also provided an optimistic outlook for the full year 2021, projecting adjusted diluted earnings per share between $4.50 and $5.25, signaling confidence in its ongoing strategy and market position.

Financial Highlights

46 data points
Beta

Revenue

$32.47B

Net Income

$3.01B

9.3% Net Margin

EPS (Diluted)

$2.03

Total Assets

$238.41B

Cash & Equivalents

$21.61B

Free Cash Flow

$388.00M

Financial Statements
Beta
Revenue$32.47B
Operating Expenses$29.20B
Operating Income$3.28B
Net Income$3.01B
EPS (Basic)$2.06
EPS (Diluted)$2.03
Shares Outstanding (Basic)1.45B
Shares Outstanding (Diluted)1.46B

Key Highlights

  • 1Net income attributable to stockholders dramatically increased to $3.02 billion in Q1 2021, up from $247 million in Q1 2020.
  • 2Diluted earnings per share rose to $2.03 in Q1 2021, a significant improvement from $0.17 in the prior year's quarter.
  • 3Total net sales and revenue remained strong at $32.47 billion, with a slight decrease from $32.71 billion year-over-year.
  • 4Operating income showed substantial growth, reaching $3.28 billion in Q1 2021 compared to $657 million in Q1 2020.
  • 5GM Financial's provision for loan losses decreased significantly, contributing to improved profitability in that segment.
  • 6The company received a significant investment of $2.5 billion into its Cruise autonomous vehicle division from Microsoft and other investors.
  • 7GM provided a positive full-year 2021 outlook, forecasting adjusted diluted EPS between $4.50 and $5.25.

Frequently Asked Questions

The significant increase in net income was primarily driven by strong operational performance, particularly in the North American automotive segment, benefiting from favorable pricing, improved mix, and a recovery in demand. Additionally, a substantial decrease in the provision for loan losses at GM Financial, compared to the prior year when reserves were increased due to COVID-19 uncertainty, also contributed positively.

The global semiconductor supply shortage has impacted GM's production schedules, leading to lost production volumes and temporary suspensions of certain manufacturing sites. The company is prioritizing the production of its most profitable vehicles, including full-size trucks and SUVs, and electric vehicles. GM estimates the temporary shortage will have a net EBIT-adjusted impact of approximately $1.5 billion to $2.0 billion for the full year 2021.

General Motors provided an optimistic outlook for 2021, projecting adjusted diluted earnings per share between $4.50 and $5.25. They expect net income attributable to stockholders to be between $6.8 billion and $7.6 billion, and EBIT-adjusted to be at the high end of the $10.0 billion to $11.0 billion range. This guidance incorporates the expected impact of the semiconductor supply shortage.

GM's autonomous vehicle subsidiary, Cruise, received a significant investment of $2.5 billion in the first quarter of 2021 from Microsoft and other investors. This investment is designated for Cruise's working capital and general corporate purposes, and signifies a strategic partnership with Microsoft as the preferred public cloud provider to accelerate the commercialization of self-driving vehicles.