10-QPeriod: Q1 FY2023

General Motors Co Quarterly Report for Q1 Ended Mar 31, 2023

Filed April 25, 2023For Securities:GM

Summary

General Motors Co. reported solid financial results for the first quarter of 2023, demonstrating resilience amidst a dynamic market. Total net sales and revenue increased by 11.1% year-over-year to $39.985 billion, driven primarily by increased wholesale vehicle volumes and favorable pricing across its automotive segments. Net income attributable to stockholders decreased slightly to $2.395 billion from $2.939 billion in the prior year, which impacted diluted earnings per share to $1.69 from $1.35. The company continues to navigate supply chain normalization and inflationary pressures while strategically investing in its electric vehicle (EV) and autonomous vehicle (AV) future. The company's financial health remains robust, with healthy operating income and a strong liquidity position. GM Financial also contributed positively, with revenue increasing and a solid performance in its retail and commercial financing operations. Despite some challenges, such as increased costs in the automotive segment and a slight decrease in EBT-adjusted for GM Financial, the company's diversified revenue streams and strategic focus on growth initiatives provide a positive outlook.

Financial Highlights

45 data points
Beta

Revenue

$39.98B

Net Income

$2.40B

6.0% Net Margin

EPS (Diluted)

$1.69

Total Assets

$267.00B

Cash & Equivalents

$18.23B

Free Cash Flow

$655.00M

Financial Statements
Beta
Revenue$39.98B
Operating Expenses$37.41B
Operating Income$2.58B
Net Income$2.40B
EPS (Basic)$1.70
EPS (Diluted)$1.69
Shares Outstanding (Basic)1.40B
Shares Outstanding (Diluted)1.40B

Key Highlights

  • 1Total net sales and revenue increased by 11.1% to $39.985 billion compared to Q1 2022.
  • 2Diluted earnings per share stood at $1.69, a notable increase from $1.35 in the prior year.
  • 3Automotive and other cost of sales decreased by 9.9% due to strategic cost management and favorable currency impacts.
  • 4GM Financial saw its total revenue increase by 5.9% to $3.343 billion, driven by higher finance charge income.
  • 5The company maintained a strong liquidity position, with total automotive available liquidity at $34.9 billion.
  • 6Investments in electric vehicles (EVs) and autonomous vehicles (AVs) remain a strategic priority, despite ongoing development costs.
  • 7GM announced an intention to implement a cost reduction program to reduce fixed costs by $2.0 billion annually by 2024.

Frequently Asked Questions

General Motors reported total net sales and revenue of $39,985 million for the three months ended March 31, 2023, an increase of 11.1% compared to $35,979 million in the same period of 2022.

Net income attributable to stockholders decreased to $2,395 million for the first quarter of 2023, compared to $2,939 million for the same period in 2022. This resulted in a decrease in diluted earnings per common share to $1.69 from $1.35 year-over-year.

GM Financial's total revenue increased by 5.9% to $3,343 million in Q1 2023, primarily driven by an increase in finance charge income due to higher yields. However, EBT-adjusted for GM Financial decreased by 40.0% to $771 million, largely due to decreased leased vehicle income and increased interest expense.

For the full year 2023, General Motors expects net income attributable to stockholders to be between $8.4 billion and $9.9 billion, and adjusted EBIT to be between $11.0 billion and $13.0 billion. Diluted EPS is expected to be between $5.83 and $6.83, and adjusted diluted EPS between $6.35 and $7.35.