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General Motors Co 8-K Report, Financial Results (Apr 23, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 23, 2024
Period End
April 23, 2024
Security
GM
In the record · 2016–202610-K1110-Q338-K154

GM filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 154 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Nov ’18Nov ’18
  2. Leadership change8-K · Oct ’20Oct ’20
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed April 23, 2024. Cited figures are marked; the original filing is the authoritative source.

General Motors reported first-quarter 2024 revenue of $43.0 billiona, up 7.6% year over year, and net income attributable to stockholders of $3.0 billion, up 24.4%.

EBIT-adjusted was $3.9 billionb, roughly flat (up 1.8%), with the EBIT-adjusted margin compressing to 9.0% from 9.5%. The quarter's earnings growth in GAAP terms was helped by the absence of the $875 million voluntary separation program charge recorded in Q1 2023, which masks weaker underlying profitability. Diluted EPS was $2.56 versus $1.69, and adjusted diluted EPS was $2.62 versus $2.21.

The quarter was mixed by segment. GM North America (GMNA) EBIT-adjusted rose 7.4% to $3.84 billionc, with margin slipping to 10.6%. GM International (GMI) swung to a $10 million adjusted loss from $347 million profit, and China equity income turned to a $106 million loss from $83 million income, reflecting pressure in China.

Cruise losses narrowed slightly but remained large at $442 milliond adjusted. Adjusted automotive free cash flow improved sharply to $1.09 billion from negative $132 million, helped by higher automotive operating cash flow of $3.6 billion. Management raised full-year 2024 guidance: EBIT-adjusted is now $12.5-14.5 billion (from $12.0-14.0 billion), net income attributable to stockholders $10.1-11.5 billion, adjusted EPS-diluted $9.00-10.00 (from $8.50-9.50), and adjusted automotive free cash flow $8.5-10.5 billion (from $8.0-10.0 billion).

Capital spending guidance of $10.5-11.5 billion is unchanged. The raise is modest, and the Q1 results alone do not show the margin pressure from GMI and China being resolved, so investors will likely focus on whether the guidance can absorb those headwinds.

02—Key points

Key Highlights

  1. Q1 2024 revenue rose 7.6% to $43.0 billion; net income attributable to stockholders rose 24.4% to $3.0 billion.
  2. EBIT-adjusted was $3.9 billion, up only 1.8%, with margin down 0.5 points to 9.0%; the GAAP gain was flattered by the absence of the prior-year $875 million voluntary separation charge.
  3. GMNA EBIT-adjusted rose 7.4% to $3.84 billion, but margin fell to 10.6% from 10.9%.
  4. GMI swung to a $10 million adjusted loss from a $347 million profit, and China equity income turned to a $106 million loss, signaling pressure in China.
  5. Adjusted automotive free cash flow improved to $1.09 billion from negative $132 million, driven by automotive operating cash flow of $3.6 billion.
  6. Full-year 2024 guidance raised: EBIT-adjusted to $12.5-14.5 billion, adjusted EPS-diluted to $9.00-10.00, and adjusted automotive free cash flow to $8.5-10.5 billion; capex guidance unchanged at $10.5-11.5 billion.
  7. Cruise posted a $442 million adjusted EBIT loss, and Q1 wholesale volume rose to 895 thousand units from 864 thousand, while U.S. market share fell to 15.4% from 16.4%.

03—Questions

Frequently Asked Questions

  1. Why did GM raise its 2024 guidance?

    The filing does not state a specific driver. The increase is modest, with EBIT-adjusted up $0.5 billion at both ends and adjusted EPS-diluted up $0.50 at both ends. It follows a quarter with 7.6% revenue growth, higher GMNA earnings, and strong automotive cash flow, but the filing does not attribute the raise to a specific factor.

  2. Is GM's underlying profitability improving?

    Only partly. Reported net income and EPS growth look strong, but EBIT-adjusted rose just 1.8% and its margin fell to 9.0% from 9.5%. Q1 2023 GAAP results included an $875 million separation charge, which inflated the year-over-year comparison. GMNA margin also declined, and GMI and China turned negative.

  3. What is weighing on GM's international and China businesses?

    GMI swung to a $10 million adjusted loss from a $347 million profit, and China equity income turned to a $106 million loss from $83 million income. GM's China market share fell to 7.9% from 9.1%, and total International market share in GM markets also declined. The filing does not explain the causes in detail.

  4. How is GM's cash generation trending?

    Positive. Automotive operating cash flow rose 61% to $3.6 billion, and adjusted automotive free cash flow reached $1.09 billion versus negative $132 million a year earlier. Full-year guidance for adjusted automotive free cash flow is $8.5-10.5 billion, which implies continued strong cash generation despite $10.5-11.5 billion of planned capital spending.

  5. What risks stand out from this quarter?

    Key risks include margin compression in GMNA, the swing to losses in GMI and China, Cruise's continuing losses of $442 million, and the decline in U.S. market share to 15.4% from 16.4%. Management's modest guidance raise leaves little room for further deterioration in these areas.

04—Continue

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