General Motors Company (GM) Q2 2013 earnings summary

Executive summary

• Revenue was $39.075B, up 3.9% YoY; adjusted EBIT was $2.3B, up 7%.

• Net income attributable to common stockholders was $1.2B, or $0.75 diluted EPS; adjusted automotive free cash flow reached $2.6B.

• North America and China were strong, while Europe and International Operations remained pressured.

Financial highlights

• GAAP operating income was $1.751B versus $1.821B; diluted EPS was $0.75 versus $0.90 YoY.

• Automotive net cash from operating activities rose to $4.5B from $3.8B; adjusted automotive free cash flow increased to $2.6B from $1.7B.

• Adjusted EBIT margin increased to 5.8% from 5.6%; revenue included a $400M unfavorable FX impact.

• Net income attributable to stockholders was $1.414B versus $1.846B; higher tax expense reduced diluted EPS by $0.29 YoY.

Outlook and guidance

• Second-half priorities included successful launches, lower cost and complexity, quality and customer experience, and improved GMIO consolidated operations.

• North America guidance was unchanged; aggregate performance was expected to improve YoY, weighted toward H2, as truck launch startup costs eased somewhat in Q4.

• Europe targeted continued YoY improvement, though seasonal performance was expected to decline in H2 versus H1; no revised break-even target was set.

• China industry growth was forecast at 7%–9%; South America anticipated some H2 launch tailwind, subject to FX recovery and Venezuela conditions.