General Motors Company (GM) Q1 2013 earnings summary

Executive summary

• Global market share rose to 11.4% from 11.2%; worldwide retail deliveries increased to 2.361M from 2.278M, while wholesale volume declined to 1.554M from 1.594M.

• Revenue was $36.9B, adjusted EBIT was $1.8B and diluted EPS was $0.58; cash flow was pressured by lower earnings and timing items expected to reverse during 2013.

• China sales and JV earnings grew, while Europe remained loss-making and South America weakened.

Financial highlights

• Revenue was $36.9B vs. $37.8B YoY; GAAP operating income was $959M vs. $996M, and net income attributable to stockholders was $1.175B vs. $1.315B.

• Net income attributable to common stockholders was $865M vs. $1.004B; diluted EPS was $0.58 vs. $0.60.

• Adjusted EBIT was $1.8B vs. $2.2B; adjusted EBIT margin declined 100 bps to 4.8%.

• Consolidated operating cash flow was $819M vs. $2.499B; automotive operating cash flow was $500M and adjusted automotive free cash flow was negative $1.325B.

• Automotive gross margin was $3.727B vs. $4.418B, down 15.6%.

Outlook and guidance

• FY 2013 effective tax rate for earnings purposes was expected in the high 30s, excluding special items and before equity income; cash tax rate was expected near 10%.

• Cash flow timing effects from production cadence, working capital and incentive payments were expected to reverse during the year.

• North American carryover-product pricing headwinds were expected through Q2 sell-down; new-product pricing offsets were expected to start in Q2 and be weighted to H2.

• Near-term European conditions were expected to remain adverse, with continued regional losses anticipated; stated top- and bottom-line objectives remained on track.

• More than 40 vehicle introductions were planned for 2013; annual capital expenditures were planned at $8B.