Summary
General Motors Company (GM) reported its third-quarter 2021 financial results, showing a significant decrease in net sales and revenue compared to the prior year, primarily driven by lower automotive sales volumes. This decline was largely attributed to the ongoing global semiconductor supply shortage, which impacted production. Despite the revenue dip, the company demonstrated resilience with a net income attributable to stockholders of $2.42 billion for the quarter. The year-to-date net income was substantially higher than the previous year, reaching $8.28 billion. The company also highlighted progress in its strategic initiatives, particularly in electric and autonomous vehicles, with substantial investments planned for the future. GM's financial health remains robust, supported by strong performance from GM Financial and a solid cash position, enabling continued investment in future growth areas despite near-term operational challenges.
Financial Highlights
47 data points| Revenue | $26.78B |
| Operating Expenses | $25.13B |
| Operating Income | $1.65B |
| Net Income | $2.39B |
| EPS (Basic) | $1.64 |
| EPS (Diluted) | $1.62 |
| Shares Outstanding (Basic) | 1.45B |
| Shares Outstanding (Diluted) | 1.47B |
Key Highlights
- 1Net sales and revenue for the third quarter decreased by 24.5% year-over-year to $26.78 billion, primarily due to lower automotive volumes impacted by the semiconductor shortage.
- 2Net income attributable to stockholders for the third quarter was $2.42 billion, a decrease from $4.05 billion in the prior year quarter, reflecting lower sales and increased costs.
- 3Year-to-date net income attributable to stockholders increased significantly to $8.28 billion, compared to $3.58 billion in the same period of 2020.
- 4GM Financial reported total revenue of $3.35 billion for the quarter, a slight decrease of 2.0% year-over-year, but demonstrated strong performance with increased earnings before taxes (EBT)-adjusted due to favorable lease termination gains and a reduced provision for loan losses.
- 5The company highlighted substantial progress in its strategic priorities, including increased investment in electric and autonomous vehicles, with plans to invest $35 billion through 2025.
- 6Inventories increased significantly to $14.5 billion from $10.2 billion, largely due to vehicles manufactured without final components because of the semiconductor shortage.
- 7GM maintained a strong liquidity position with total available liquidity of $36.3 billion as of September 30, 2021, although down from $42.2 billion at the end of 2020.