General Motors Company (GM) Q1 2015 earnings summary

Executive summary

• Net income was $908M; net income attributable to common stockholders was $945M, with diluted EPS of $0.56 and adjusted EPS of $0.86.

• Adjusted EBIT was $2.1B, up from $0.5B YoY; results supported 2015 and 2016 financial commitments.

• Trailing-four-quarter ROIC was 19.5%, up from 16.9%.

Financial highlights

• Revenue was $35.7B vs. $37.4B YoY; operating income was $753M vs. an operating loss of $535M.

• Adjusted EBIT margin was 5.8% vs. 1.2%; special items reduced diluted EPS by $0.30, to reported EPS of $0.56 from adjusted EPS of $0.86.

• Adjusted automotive free cash flow was $(1.7)B vs. $0.2B; supplier payment timing and recall and restructuring payments contributed to the outflow.

• Automotive available liquidity was $34.2B at March 31, including $22.1B in cash and marketable securities and $12.1B in credit facilities.

Outlook and guidance

• 2015 adjusted EBIT and margins were expected to improve YoY across automotive segments; adjusted automotive free cash flow guidance remained flat to up vs. 2014.

• 2016 targets included a 10% North America adjusted EBIT margin and a return to positive Europe adjusted EBIT, assuming Europe avoids another recession.

• GM International was expected to break even in 2015 excluding restructuring; South America guidance was unchanged.

• China planned ~$14B of investment through 2018, with vehicle sales volume growth of nearly 40% from 2014 to 2018.

• GM Financial expected 2015 adjusted pretax income to remain consistent with 2014.