General Motors Company (GM) Q1 2014 earnings summary

Executive summary

• Revenue was $37.408B versus $36.884B YoY; net income attributable to common stockholders was $0.1B, or $0.06 diluted EPS, versus $0.9B and $0.58.

• Adjusted EBIT was $0.5B versus $1.8B, including $1.3B in recall costs and $0.3B in restructuring costs; worldwide deliveries were 2.416M and share was 11.1%.

• Adjusted automotive EBIT was $246M; Europe and China outperformed expectations, while South America faced challenging conditions.

Financial highlights

• Total net sales and revenue were $37.408B versus $36.884B; automotive revenue was $36.315B versus $36.344B, while GM Financial revenue rose to $1.093B from $540M.

• GAAP operating loss was $535M versus $959M operating income; net income attributable to stockholders was $213M versus $1.175B, and diluted EPS was $0.06 versus $0.58.

• Adjusted EBIT was $0.5B versus $1.8B; adjusted EBIT margin was 1.2% versus 4.8%.

• Automotive operating cash flow was $2.0B versus $0.5B; adjusted automotive free cash flow was $0.2B versus negative $1.3B.

Outlook and guidance

• Core operating performance remained on plan for 2014; Europe and China were ahead of plan, while weaker South America results reflected conditions in Venezuela and Brazil.

• Priorities included flawless launches and using strength in the U.S. and China to restructure key global operations.

• Europe break-even objective remained mid-decade; repair parts for most affected ignition-switch and ignition-cylinder vehicles were planned by October 2014.

• Annual capital expenditures were expected to be $7.5B; cash needs also included recall costs, restructuring and debt service.