What drove the decrease in net income for the quarter?

The decrease in net income was primarily driven by higher costs in the 'Automotive and other cost of sales' category, which increased by $2.0 billion year-over-year for the quarter, and a significant decrease in 'Equity income (loss)' from nonconsolidated affiliates, which went from $327 million to a loss of $45 million.

How are supply chain disruptions affecting GM?

Supply chain disruptions, particularly semiconductor shortages, continue to impact GM's production schedules. The company had over 90,000 vehicles in inventory as of June 30, 2022, that were manufactured without certain components, which they expect to complete and sell by the end of 2022. Despite these challenges, GM anticipates they will not impact its long-term growth and EV initiatives.

What is the outlook for GM Financial?

GM Financial's revenue decreased by 8.2% to $3.1 billion in the quarter, largely due to lower leased vehicle income. The provision for loan losses increased significantly. The company anticipates used vehicle prices to remain elevated but decrease relative to 2021 peak levels for the remainder of 2022.

What progress has been made in GM's EV and AV initiatives?

GM continues to invest heavily in EVs and AVs. Cruise, its AV subsidiary, received the first-ever Driverless Deployment Permit from the CPUC in June 2022, allowing it to charge for driverless rides in San Francisco. The company also reaffirmed its commitment to an all-electric future, planning to invest over $35 billion through 2025.

GM 10-Q Quarterly Report Q2 FY2022 — Revenue, Net Income, EPS

Summary

General Motors (GM) reported its Q2 2022 results, showing a modest increase in total net sales and revenue to $35.8 billion, up from $34.2 billion in the prior year period, driven by higher automotive sales. However, operating income saw a notable decrease to $2.1 billion from $2.9 billion year-over-year, impacting net income attributable to stockholders, which fell to $1.7 billion ($1.14 per share) from $2.8 billion ($1.90 per share) in Q2 2021. This decline was influenced by increased costs, particularly in automotive and other cost of sales, and lower equity income from affiliates. Despite the decrease in profitability, GM continues to make strategic investments in its future, particularly in electric vehicles (EVs) and autonomous vehicles (AVs) through its Cruise segment. The company maintained a strong liquidity position with $33.0 billion in total available automotive liquidity. Management reaffirmed its full-year 2022 outlook, expecting net income attributable to stockholders between $9.6 billion and $11.2 billion, indicating confidence in its long-term strategy despite ongoing supply chain challenges and inflationary pressures.

Financial Highlights

46 data points

Beta

Revenue

$35.76B

Net Income

$1.69B

0.0% Net Margin

EPS (Diluted)

$1.14

Total Assets

$253.52B

Cash & Equivalents

$16.71B

Free Cash Flow

$956.00M

Financial Statements

Beta

Revenue	$35.76B
Operating Expenses	$33.64B
Operating Income	$2.12B
Net Income	$1.69B
EPS (Basic)	$1.14
EPS (Diluted)	$1.14
Shares Outstanding (Basic)	1.46B
Shares Outstanding (Diluted)	1.47B

Key Highlights

1Total net sales and revenue increased by 4.7% to $35.8 billion for the quarter, primarily driven by the Automotive segment.
2Operating income decreased by 26.6% to $2.1 billion, and net income attributable to stockholders declined by 39.8% to $1.7 billion compared to the prior year quarter.
3Diluted Earnings Per Share (EPS) decreased to $1.14 from $1.90 in the prior year quarter.
4Inventories increased significantly to $16.9 billion from $13.0 billion at the end of 2021, partly due to vehicles manufactured without certain components due to supply chain disruptions.
5GM Financial's revenue decreased by 8.2% to $3.1 billion, primarily due to lower leased vehicle income.
6The company reaffirmed its full-year 2022 outlook for Net Income attributable to stockholders between $9.6 billion and $11.2 billion.
7Total Automotive available liquidity stood at $33.0 billion as of June 30, 2022, indicating a strong cash position.

General Motors Co Quarterly Report for Q2 Ended Jun 30, 2022

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions