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National Press Release
 | GM Reports Preliminary Fourth Quarter and Calendar Year 2008 Financial ResultsPublished 2009-02-26 07:10By General Motors Corporation |
Results reflect global economic crisis and industry-wide collapse in vehicle demand
Fourth quarter adjusted net loss of
2008 adjusted net loss of
Structural cost improvement in
Calendar Year
2008 2007* '08 O/(U) '07
---- ---- -------------
Revenue (bils.): $149 $180 $(31)
Adjusted automotive earnings
before tax (bils.): $(10.4) $0.6 $(11.0)
Reported automotive earnings
before tax (bils.): $(16.3) $(1.9) $(14.4)
Adjusted net income (bils.): $(16.8) $(0.3) $(16.5)
Reported net income (bils.): $(30.9) $(43.3) $12.4
Reported earnings per share
(diluted): $(53.32) $(76.52) $23.20
Adjusted operating cash flow (bils): $(19.2) $(2.4) $(16.8)
* 2007 figures reflect continuing operations
General Motors Corp. (NYSE: GM) today announced its fourth quarter and calendar year 2008 financial results, which were affected by the dramatic deterioration in global economic and market conditions during the year, declining consumer confidence and a 50-year low in per-capita auto sales in
For the 2008 calendar year, GM reported an adjusted net loss, excluding special items, of
"2008 was an extremely difficult year for the U.S. and global auto markets, especially the second half," Chairman and CEO
"We expect these challenging conditions will continue through 2009, and so we are accelerating our restructuring actions. At the same time, we are continuing our commitment to exciting, fuel-efficient cars and trucks, and the leadership in advanced propulsion technology."
GM total revenue in 2008 was
Fourth Quarter
2008 2007* '08 O/(U) '07
---- ----- -------------
Revenue (bils.): $30.8 $46.8 $(16.0)
Adjusted automotive earnings
before tax (bils.): $(4.0) $(0.8) $(3.2)
Reported automotive earnings
before tax (bils.): $(6.4) $(1.2) $(5.2)
Adjusted net income (bils.): $(5.9) $0.05 $(5.9)
Reported net income (bils.): $(9.6) $(1.5) $(8.1)
Reported earnings per share
(diluted): $(15.71) $(2.70) $(13.01)
Adjusted operating cash flow
(bils): $(5.2) $(1.3) $(3.9)
* 2007 figures reflect continuing operations
In the fourth quarter 2008, GM posted an adjusted net loss of
The fourth quarter 2008 results reflect special items totaling
-- $1.1 billion impairment charge primarily relating to actions being taken
regarding the Hummer and Saab brands
-- $1.0 billion charge relating to adjustments to the value of deferred tax
assets in various countries outside of the U.S.
-- $900 million of restructuring and capacity-related costs
-- $660 million increase to the Delphi reserve relating to the valuation of
future pension obligations
-- $610 million of gross goodwill impairments in Europe and North America
-- $533 million net gain relating to GM's portion of the GMAC bond
exchange gain, net of an impairment taken on GM's holdings in GMAC
Details on all special items are included in the "Highlights" section of this news release.
Effective
In accordance with SFAS 157, GM incorporates its credit risk when measuring the fair value of its derivative liabilities. As a result of GM's increasing credit risk, the fair value of its derivative liabilities declined in the fourth quarter, resulting in a net gain of
GM reported revenue of
GM reports its automotive operations and regional results on a pre-tax basis, with taxes reported on a total corporate basis.
GM Automotive Operations
GM's global automotive operations posted an adjusted loss before tax of
GM 2008 worldwide sales were 8.35 million vehicles, down 11 percent, or 1.01 million vehicles, driven by the industry-wide contraction in global vehicle sales. In 2008, 5.38 million vehicles, or 64 percent of GM's global sales, were outside of the U.S., up from 59 percent a year ago. GM's
GMNA
Fourth Quarter
2008 2007 '08 O/(U) '07
---- ---- ------------
Revenue (bils.) $19.3 $28.1 $(8.8)
Adjusted earnings before tax (bils.) $(2.1) $(1.1) $(1.0)
Reported earnings before tax (bils.) $(3.5) $(1.3) $(2.2)
GM market share 21.0% 22.7% (1.7)p.p.
GM
As a result of GM's ongoing restructuring initiatives to adapt to current economic conditions, significant actions have been taken to reduce its structural cost. In
GME
Fourth Quarter
2008 2007 '08 O/(U) '07
---- ---- -------------
Revenue (bils.) $6.4 $10.7 $(4.3)
Adjusted earnings before tax (mils.) $(956) $(215) $(741)
Reported earnings before tax (mils.) $(1,890) $(445) $(1,445)
GM market share 9.1% 9.2% (0.1)p.p.
For the fourth quarter 2008, GM Europe (GME) posted an adjusted loss before tax of
GMLAAM
Fourth Quarter
2008 2007 '08 O/(U) '07
---- ---- -------------
Revenue (bils.) $4.7 $6.0 $(1.3)
Adjusted earnings before tax (mils.) $(154) $424 $(578)
Reported earnings before tax (mils.) $(181) $424 $(605)
GM market share 16.2% 17.3% (1.1)p.p.
In the fourth quarter, GMLAAM posted an adjusted loss before tax of
GMAP
Fourth Quarter
2008 2007 '08 O/(U) '07
---- ---- -------------
Revenue (bils.) $2.6 $5.3 $(2.7)
Adjusted earnings before tax (mils.) $(879) $72 $(951)
Reported earnings before tax (mils.) $(917) $72 $(989)
GM market share 7.2% 7.3% (0.1) p.p.
GMAP posted an adjusted loss before tax of
GMAC
In the fourth quarter, GMAC Financial Services (GMAC) reported net income of
GM realized an adjusted loss of
Cash and Liquidity
Cash, marketable securities and readily available assets of the Voluntary Employees Beneficiary Association (VEBA) trust totaled
On
In accordance with the terms of the loan, GM submitted to the UST on
As a result of year-end measurements of GM's net pension obligations, it was determined that the U.S. hourly and salaried qualified pension plans are currently underfunded, on a combined basis, by approximately
GM intends to take advantage of the extension of the time required to file its 2008 10-K, which the SEC rules allow by filing Form 12b-25. This provides GM with up to 15 additional days in which to file its 2008 10-K, without being considered "late" by the SEC. The company believes this is a prudent step to take at this critical time as it allows more time for thorough review of the extensive financial and other disclosures regarding the events that occurred at year-end 2008 and during early 2009. Additionally, as a result of the bond exchange, GM's 2008 10-K will contain information regarding executive compensation, which would not normally be disclosed until the proxy statement is issued for GM's annual stockholder meeting.
Finally, GM anticipates receiving a "going concern" opinion from its auditors in the 2008 10-K. GM and its auditors must determine whether there is substantial doubt about GM's ability to continue as a going concern. GM's Viability Plan filed with the UST on
About GM
General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in
Forward-Looking Statements
In this press release and in related comments by our management, our use of the words "expect," "anticipate," "ensure," "promote," "target," "believe," "improve," "intend," "enable," "continue," "will," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to comply with the requirements of our credit agreement with the U.S. Treasury; the availability of funding for future loans under that credit agreement; our ability to execute the restructuring plans that we have disclosed, our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; and changes in general economic conditions, market acceptance of our products; shortages of and price volatility for fuel; significant changes in the competitive environment and the effect of competition on our markets, including on our pricing policies, financing sources and an appropriate level of debt; and changes in general economic conditions.
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release, the accompanying tables and the charts for securities analysts include the following financial measures, which are not prepared in accordance with Accounting Principles Generally Accepted in
Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM's operating results because they exclude amounts that GM management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. In addition, GM has historically reported similar non-GAAP financial measures and believes that inclusion of these non-GAAP financial measures provides consistency and comparability with past earnings releases. GM management believes these measures allow it to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether the GM North American structural cost turnaround plan is on target. Also, GM management uses adjusted net income and adjusted earnings before tax for forecasting purposes and in determining future capital investment allocations. Accordingly, GM believes these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making.
While GM believes that these non-GAAP financial measures provide useful supplemental information, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be comparable to similarly titled measures of other companies due to potential differences in the method of calculation between companies. Costs such as the special attrition programs and restructuring charges that are excluded from GM's non-GAAP financial measures can have a material effect on net earnings. As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, net earnings, cash flow from operations, or other measures of performance or liquidity prepared in accordance with GAAP. GM compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by providing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are included elsewhere in this press release.
Adjusted Net Income and Adjusted Earnings Before Tax
Adjusted net income excludes charges for certain tax related items, gains and losses on the sale of business units and business interests, charges associated with accounting changes, restructuring, plant closure and impairment charges, charges associated with Delphi Corporation (Delphi), special attrition program charges, and other gains and losses which management excludes when assessing the internal performance of the organization.
Adjusted earnings before tax begins with adjusted net income and is adjusted to remove any remaining tax expense or benefit.
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
Managerial Cash Flow
GM reports non-GAAP managerial automotive operating cash flow in its earnings releases and charts for securities analysts. Management believes that providing managerial automotive operating cash flow furnishes it and investors with useful information by representing the cash flow generated or consumed by its automotive operations, including cash consumed by automotive capital expenditures and equity investments in companies related to GM's core business and cash generated by sales of automotive operating assets and equity investments in companies related to GM's core business, before funding non-operating-related obligations including debt maturities, dividends and other non-operating items. Management uses this non-GAAP financial measure to assess its automotive cash flow when evaluating the performance of GM, its business units and its management teams and when making decisions to allocate resources among GM's business units.
General Motors Corporation
List of Special Items
2008
(Dollars in millions except per share amounts)
(Unaudited)
Fourth Quarter 2008 Year Ended 2008
------------------- ---------------
Earnings EPS Earnings EPS
REPORTED
--------
Net Loss - Basic and
Diluted * $(9,596) $(15.71) $(30,860) $(53.32)
ADJUSTMENTS
-----------
Pre-Tax Adjustments:
Goodwill impairments (A) $610 $610
Asset impairments (B) 974 974
Charges (income)
related to
investment in GMAC
LLC (C) (533) 2,504
Delphi (D) 660 4,797
Restructuring and
2008 Special
Attrition Programs
(E) 900 6,463
UAW VEBA curtailment
gain (F) - (4,901)
Salaried post-65
healthcare
settlement (G) - 1,704
Canadian Auto
Workers labor
contract (H) - 340
American Axle (I) - 197
Gain on sales of
investments (J) - (98)
- ----
2,611 12,590
----- ------
Tax related:
Valuation allowance
on net deferred tax
assets (K) 1,056 1,450
Equity
Income/Minority
Interest:
Equity investment
impairments (L) 83 83
Minority interest
effects (M) (49) (49)
---- ----
34 34
-- --
Total Adjustments $3,701 $6.06 $14,074 $24.32
====== ===== ======= ======
ADJUSTED
--------
Adjusted Loss -
Basic and Diluted * $(5,895) $(9.65) $(16,786) $(29.00)
=========== =========== ========= ===========
* See average shares outstanding on page 16.
General Motors Corporation
List of Special Items
2008
(Unaudited)
(A) Fourth quarter and year to date charges of
(B) Fourth quarter charges of
(C ) Fourth quarter income of
(D) Fourth quarter charges of
(E) Relates to various restructuring initiatives and the 2008 Special Attrition Programs. Charges recorded by region are as follows:
GMNA: Fourth quarter charges of
GME: Fourth quarter charges of
GMAP: Year to date charges of
Corporate and Other: Fourth quarter and year to date charges of
(F) Year to date gain of
(G) Settlement loss of
(H) Year to date loss of
(I) Year to date charge of
(J) First quarter gain of
(K) Fourth quarter and year to date charges of
(L) Fourth quarter and year to date charges of
(M) Fourth quarter and year to date gain of
General Motors Corporation
List of Special Items
2007
(Dollars in millions except per share amounts)
(Unaudited)
Fourth Quarter 2007 Year Ended 2007
------------------- ---------------
Earnings EPS Earnings EPS
REPORTED
--------
Loss from
continuing
operations $(1,527) $(2.70) $(43,297) $(76.52)
Income from
discontinued
operations - - 256 0.45
Gain on sale of
discontinued
operations 805 1.42 4,309 7.62
--- ---- ----- ----
Net Loss - Basic
and Diluted* $(722) $(1.28) $(38,732) $(68.45)
========== ========== ========== ========
ADJUSTMENTS
-----------
Pre-Tax
Adjustments:
Delphi (A) $1,174 $2,099
Restructuring/Special
attrition program (B) 290 918
Product specific
asset
impairments (C) 169 277
Plant closures
(D) (43) (90)
Pension prior
service cost (E) - 1,561
----- -----
1,590 4,765
----- -----
Tax Related Adjustments:
Valuation allowance on
deferred tax assets and
associated tax
items (F) - 38,300
Income tax effect
of pre-tax
adjustments (17) (47)
---- ----
(17) 38,253
---- ------
Total Continuing Operations
Adjustments 1,573 2.78 43,018 76.03
Gain on sale of
discontinued
operations (G) (805) (1.42) (4,309) (7.62)
----- ------ ------- ------
Total Adjustments $768 $1.36 $38,709 $68.41
==== ===== ======= ======
ADJUSTED
--------
Income from continuing
operations $46 $0.08 $(279) $(0.49)
Income from discontinued
operations - - 256 0.45
---- ---- --- ----
Adjusted Income -
Basic and Diluted* $46 $0.08 $(23) $(0.04)
========= ========== ========= =========
* See average shares outstanding on page 16.
General Motors Corporation
List of Special Items
2007
(Unaudited)
(A) GM, Delphi and the UAW entered into a Memorandum of Understanding (MOU) in
(B) Relates to various restructuring initiatives and the 2006 Special Attrition Program. Charges recorded by region are as follows:
GMNA: Fourth quarter charges of
GME: Fourth quarter charges of
GMAP: Year to date charges of
(C ) Fourth quarter charges of
GMNA: Fourth quarter and year to date charges of
GMAP: Year to date charges of
(D) Relates to curtailment gains and favorable reserve adjustments at GMNA related to the closure of two former component plants.
(E) Relates to a change in the estimate of the amortization period for pension prior service cost for certain of our employee benefit plans. In conjunction with entering into the 2007 UAW/GM labor contract, GM determined that the four year term of the labor contract better reflects the period of future economic benefit received from plan amendments to U.S. hourly pension plans. Concurrently, GM evaluated the remaining economic benefit related to the unamortized prior service cost remaining from prior labor contracts and determined the future economic benefit for those amounts that remained at the end of the third quarter of 2007 did not extend beyond the third quarter. Accordingly, during the third quarter 2007, GM recorded a charge of
(F) Relates to a net charge during the third quarter of 2007 for a valuation allowance on certain deferred tax assets and associated tax items in the U.S.,
(G) Relates to the gain on the sale of the commercial and military operations of our Allison Transmission business, which was completed in
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions except per share amounts)
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
REPORTED
--------
Total net sales and
revenue $30,778 $46,804 $148,979 $179,984
Income (loss) from
continuing operations $(9,596) $(1,527) $(30,860) $(43,297)
Income from discontinued
operations $- $- $- $256
Net income (loss) $(9,596) $(722) $(30,860) $(38,732)
Net margin from
continuing operations * (31.2)% (3.3)% (20.7)% (24.1)%
Earnings (loss) per
share - basic and
diluted
Continuing operations $(15.71) $(2.70) $(53.32) $(76.52)
Income from discontinued
operations - 1.42 - 8.07
- ---- - ----
Net income (loss) $(15.71) $(1.28) $(53.32) $(68.45)
======== ======= ======== ========
ADJUSTED
--------
Total net sales and
revenue $30,778 $46,804 $148,979 $179,984
Income (loss) from
continuing operations $(5,895) $46 $(16,786) $(279)
Income from discontinued
operations $- $- $- $256
Net income (loss) $(5,895) $46 $(16,786) $(23)
Net margin from
continuing operations * (19.2)% 0.1% (11.3)% (0.2)%
Earnings (loss) per
share - basic and
diluted
Income (loss) from
continuing operations $(9.65) $0.08 $(29.00) $(0.49)
Income from discontinued
operations - - - 0.45
- - - ----
Net income (loss) $(9.65) $0.08 $(29.00) $(0.04)
======= ===== ======== =======
See reconciliation of adjusted financial results on pages 17 - 23.
* Calculated as Income (loss) from continuing operations / Total net sales and revenue.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
GM common stock average
shares outstanding: (Millions)
----------
Reported (GAAP):
Basic shares 611 566 579 566
Diluted shares 611 566 579 566
Adjusted (Non-GAAP):
Basic shares 611 566 579 566
Diluted shares 611 567 579 566
Cash dividends per share
of common stock $- $0.25 $0.50 $1.00
Automotive cash & marketable
securities and
readily-available
assets in VEBA at
December 31: (Billions)
----------
Automotive cash &
marketable securities $14.0 $26.7
Readily-available assets
in VEBA - 0.6
---- ---
Total automotive cash &
marketable securities
and readily-available
assets in VEBA $14.0 $27.3
========= =========
Automotive Operations: (Millions)
----------
Depreciation and
impairment $2,109 $1,212 $5,689 $4,937
Amortization and
impairment of special
tools 1,145 916 3,493 3,243
Amortization and
impairment of
intangible assets 632 23 693 74
--- -- --- --
Total $3,886 $2,151 $9,875 $8,254
====== ====== ====== ======
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Net sales and revenue:
GMNA $19,280 $28,121 $- $- $19,280 $28,121
GME 6,418 10,710 - - 6,418 10,710
GMLAAM 4,707 6,040 - - 4,707 6,040
GMAP 2,608 5,342 - - 2,608 5,342
Auto Elimination (a) (2,401) (3,695) - - (2,401) (3,695)
------- ------- - - ------- -------
Total GMA 30,612 46,518 - - 30,612 46,518
Corporate & Other - - - - - -
- - - - ---- ----
Total Auto & Other 30,612 46,518 - - 30,612 46,518
------ ------ - - ------ ------
GMAC - - - - - -
Other Financing 166 286 - - 166 286
--- --- - - --- ---
Total Financing 166 286 - - 166 286
--- --- - - --- ---
Total $30,778 $46,804 $- $- $30,778 $46,804
======= ======= ==== ==== ======= =======
Income (loss) from
continuing operations
before income taxes,
other equity income
and minority interests:
GMNA $(3,390) $(1,221) $1,323 $192 $(2,067)$(1,029)
GME (1,938) (449) 986 230 (952) (219)
GMLAAM (171) 424 27 - (144) 424
GMAP (921) 13 38 - (883) 13
Auto Elimination (a) 103 (24) - - 103 (24)
--- ---- ---- ---- --- ----
Total GMA (6,317) (1,257) 2,374 422 (3,943) (835)
Corporate & Other (a) (1,086) (1,652) 770 1,168 (316) (484)
------- ------- --- ----- ----- -----
Total Auto & Other (7,403) (2,909) 3,144 1,590 (4,259) (1,319)
------- ------- ----- ----- ------- -------
GMAC (1,406) (394) (533) - (1,939) (394)
Other Financing (a) 18 94 - - 18 94
-- -- ---- ---- -- --
Total Financing (1,388) (300) (533) - (1,921) (300)
------- ----- ----- ---- - ------ -----
Total $(8,791) $(3,209) $2,611 $1,590 $(6,180)$(1,619)
======== ======== ====== ====== ======= ========
See footnotes on page 26.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Equity income (loss),
net of tax:
GMNA (153) $(28) $119 $- $(34) $(28)
GME 9 14 - - 9 14
GMLAAM (1) 8 - - (1) 8
GMAP 20 90 - - 20 90
Auto Elimination - - - - - -
- - - - - -
Total GMA (125) 84 119 - (6) 84
Corporate & Other 1 - - - 1 -
- - - - - -
Total Auto & Other (124) 84 119 - (5) 84
--- -- --- - --- --
GMAC - - - - - -
Other Financing - - - - - -
- - - - - -
Total Financing - - - - - -
- - - - - -
Total (124) $84 $119 $- $(5) $84
=== === ==== ======= ==== ===
Minority interests,
net of tax:
GMNA $20 $(3) $(20) $- $- $(3)
GME 39 (10) (52) - (13) (10)
GMLAAM (9) (8) - - (9) (8)
GMAP (16) (31) - - (16) (31)
Auto Elimination - - - - - -
- - - - - -
Total GMA 34 (52) (72) - (38) (52)
Corporate & Other 1 11 - - 1 11
- -- - - - --
Total Auto & Other 35 (41) (72) - (37) (41)
-- ---- ---- - ---- ----
GMAC - - - - - -
Other Financing 21 (4) (13) - 8 (4)
-- --- ---- - - ---
Total Financing 21 (4) (13) - 8 (4)
-- --- ---- - - ---
Total $56 $(45) $(85) $- $(29) $(45)
=== ----- ===== ======= ===== -----
See footnotes on page 26.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Pre-tax earnings
(loss):*
GMNA $(3,523) $(1,252) $1,422 $192 $(2,101) $(1,060)
GME (1,890) (445) 934 230 (956) (215)
GMLAAM (181) 424 27 - (154) 424
GMAP (917) 72 38 - (879) 72
Auto Elimination
(a) 103 (24) - - 103 (24)
--- ---- - - --- ----
Total GMA (6,408) (1,225) 2,421 422 (3,987) (803)
Corporate & Other
(a) (1,084) (1,641) 770 1,168 (314) (473)
------- ------- --- ----- ----- -----
Total Auto & Other (7,492) (2,866) 3,191 1,590 (4,301) (1,276)
------- ------- ----- ----- ------- -------
GMAC (1,406) (394) (533) - (1,939) (394)
Other Financing
(a) 39 90 (13) - 26 90
-- -- ---- - -- --
Total Financing (1,367) (304) (546) - (1,913) (304)
------- ----- ----- - ------- -----
Total $(8,859) $(3,170) $2,645 $1,590 $(6,214) $(1,580)
======= ------- ====== ====== ======== --------
Income tax
(expense)
benefit:
Corporate & Other $(700) $1,553 $1,037 $(17) $337 $1,536
Other Financing (a) (37) 90 19 - (18) 90
---- -- -- - ---- --
Total $(737) $1,643 $1,056 $(17) $319 $1,626
====== ====== ====== ===== ==== ======
See footnotes on page 26.
* Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Net sales and
revenue:
GMNA $86,187 $112,448 $- $- $86,187 $112,448
GME 34,388 37,478 - - 34,388 37,478
GMLAAM 20,260 18,894 - - 20,260 18,894
GMAP 17,828 20,317 - - 17,828 20,317
Auto Elimination
(a) (10,931) (11,543) - - (10,931) (11,543)
-------- -------- - - -------- --------
Total GMA 147,732 177,594 - - 147,732 177,594
Corporate & Other - - - - - -
- - - - - -
Total Auto & Other 147,732 177,594 - - 147,732 177,594
------- ------- - - ------- -------
GMAC - - - - - -
Other Financing 1,247 2,390 - - 1,247 2,390
----- ----- - - ----- -----
Total Financing 1,247 2,390 - - 1,247 2,390
----- ----- - - ----- -----
Total $148,979 $179,984 $- $- $148,979 $179,984
======== ======== ==== ==== ======== ========
Income (loss)
from continuing
operations
before income
taxes,
other equity
income
and minority
interests:
GMNA $(13,903) $(3,290) $4,535 $1,779 $(9,368) $(1,511)
GME (2,876) (541) 1,217 579 (1,659) 38
GMLAAM 1,306 1,349 27 - 1,333 1,349
GMAP (1,193) 557 136 63 (1,057) 620
Auto Elimination
(a) 34 (59) - - 34 (59)
-- ---- - - -- ----
Total GMA (16,632) (1,984) 5,915 2,421 (10,717) 437
Corporate & Other
(a) (5,745) (3,619) 4,171 2,344 (1,574) (1,275)
------- ------- ----- ----- ------- -------
Total Auto & Other (22,377) (5,603) 10,086 4,765 (12,291) (838)
-------- ------- ------ ----- -------- -----
GMAC (7,161) (1,147) 2,504 - (4,657) (1,147)
Other Financing (a) 150 497 - - 150 497
--- --- - - --- ---
Total Financing (7,011) (650) 2,504 - (4,507) (650)
------- ----- ----- ---- ------- -----
Total $(29,388) $(6,253)$12,590 $4,765 $(16,798) $(1,488)
========= -------- ======= ====== ========= --------
See footnotes on page 26.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Equity income
(loss), net of tax:
GMNA $(201) $22 $119 $- $(82) $22
GME 56 44 - - 56 44
GMLAAM 21 31 - - 21 31
GMAP 308 425 - - 308 425
Auto Elimination - - - - - -
- - - - - -
Total GMA 184 522 119 - 303 522
Corporate & Other 2 2 - - 2 2
- - - - - -
Total Auto & Other 186 524 119 - 305 524
--- --- --- - --- ---
GMAC - - - - - -
Other Financing - - - - - -
- - - - - -
Total Financing - - - - - -
- - - - - -
Total $186 $524 $119 $- $305 $524
==== ==== ==== ======= ==== ====
Minority interests,
net of tax:
GMNA $28 $(46) $(20) $- $8 $(46)
GME 22 (27) (52) - (30) (27)
GMLAAM (32) (32) - - (32) (32)
GMAP 85 (301) - - 85 (301)
Auto Elimination - - - - - -
- - - - - -
Total GMA 103 (406) (72) - 31 (406)
Corporate & Other 1 12 - - 1 12
- -- - - - --
Total Auto & Other 104 (394) (72) - 32 (394)
--- ----- ---- - -- -----
GMAC - - - - - -
Other Financing 4 (12) (13) - (9) (12)
- ---- ---- - --- ----
Total Financing 4 (12) (13) - (9) (12)
- ---- ---- - --- ----
Total $108 $(406) $(85) $- $23 $(406)
==== ------ ===== ======= === ------
See footnotes on page 26.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Pre-tax earnings
(loss): *
GMNA $(14,076) $(3,314) $4,634 $1,779 $(9,442) $(1,535)
GME (2,798) (524) 1,165 579 (1,633) 55
GMLAAM 1,295 1,348 27 - 1,322 1,348
GMAP (800) 681 136 63 (664) 744
Auto Elimination
(a) 34 (59) - - 34 (59)
-- ---- - - -- ----
Total GMA (16,345) (1,868) 5,962 2,421 (10,383) 553
Corporate & Other
(a) (5,742) (3,605) 4,171 2,344 (1,571) (1,261)
------- ------- ----- ----- ------- -------
Total Auto & Other (22,087) (5,473) 10,133 4,765 (11,954) (708)
-------- ------- ------ ----- -------- -----
GMAC (7,161) (1,147) 2,504 - (4,657) (1,147)
Other Financing
(a) 154 485 (13) - 141 485
--- --- ---- - --- ---
Total Financing (7,007) (662) 2,491 - (4,516) (662)
------- ----- ----- - ------- -----
Total $(29,094) $(6,135) $12,624 $4,765 $(16,470) $(1,370)
======== -------- ------- ====== ========= -------
Income tax
(expense)
benefit:
Corporate & Other $(2,458)$(37,129) $1,431 $38,130 $(1,027) $1,001
Other Financing
(a) 692 (33) 19 123 711 90
--- ---- -- --- --- --
Total $(1,766)$(37,162) $1,450 $38,253 $(316) $1,091
======= ======== ====== ======= ====== ======
See footnotes on page 26.
* Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests.
23
General Motors Corporation
Summary Corporate Financial Results
(Dollars in billions)
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
Automotive &
Other Adjusted
Operating Cash
Flow:
Total Auto &
Other pre-tax earnings
(loss)* $(7.5) $(2.9) $(22.1) $(5.5)
Depreciation,
amortization
and impairments 3.9 2.2 9.9 8.3
Capital
expenditures (2.0) (2.6) (7.5) (7.5)
Change in
receivables,
payables and
inventory 0.6 0.4 (3.5) (0.5)
OPEB expense
(net of
payments) (1.1) (0.3) (5.9) (1.4)
Pension expense
(net of
payments) 0.8 - 3.8 0.9
VEBA - - - (1.0)
Accrued expenses
and other 0.1 1.9 6.1 4.3
--- --- --- ---
Total Auto &
Other Adjusted
Operating Cash
Flow $(5.2) $(1.3) $(19.2) $(2.4)
=========== =========== =========== ===========
* Defined here as Income (loss) from continuing operations before income
taxes and after equity income and minority interests.
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
GAAP to Auto &
Other Adjusted
Operating Cash
Flow:
Net cash
provided by
operating
activities
(GAAP)** $(2.8) $3.4 $(13.3) $5.4
Capital
expenditures (2.0) (2.6) (7.5) (7.5)
VEBA withdrawals (0.8) (2.7) (1.4) (2.7)
Restructuring
costs 0.2 0.4 1.2 1.4
Delphi
restructuring
costs 0.2 - 1.4 0.3
Other - 0.2 0.4 0.7
- --- --- ---
Total Auto &
Other Adjusted
Operating Cash
Flow $(5.2) $(1.3) $(19.2) $(2.4)
=========== =========== =========== ===========
** Operating cash flow from continuing operations.
General Motors Corporation
Operating Statistics
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
Worldwide Production Volume: (Units in thousands)
--------------------
GMNA - Cars 365 358 1,543 1,526
GMNA - Trucks 450 684 1,906 2,741
--- --- ----- -----
Total GMNA 815 1,042 3,449 4,267
GME 214 457 1,550 1,828
GMLAAM 166 253 961 960
GMAP * 453 627 2,184 2,231
--- --- ----- -----
Total Worldwide ** 1,648 2,380 8,144 9,286
===== ===== ===== =====
Vehicle Unit Deliveries:
Chevrolet - Cars 132 162 715 757
Chevrolet - Trucks 209 355 1,086 1,509
Pontiac 42 81 267 358
GMC 71 125 377 506
Buick 24 42 137 186
Saturn 29 52 188 240
Cadillac 32 60 161 215
Other 9 20 49 96
- -- -- --
Total United States 547 897 2,981 3,867
Canada, Mexico and Other 127 157 583 649
--- --- --- ---
Total GMNA 675 1,054 3,564 4,516
GME 420 529 2,041 2,182
GMLAAM 266 341 1,276 1,236
GMAP * 341 382 1,475 1,436
--- --- ----- -----
Total Worldwide ** 1,703 2,306 8,356 9,370
===== ===== ===== =====
*Under a contractual agreement with SGMW we also report
**Totals may include rounding differences.
General Motors Corporation
Operating Statistics
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
Market Share: (Units in thousands)
--------------------
United States - Cars 18.2% 19.0% 18.6% 19.7%
United States - Trucks 24.6% 26.6% 25.6% 26.7%
Total United States 21.6% 23.2% 22.1% 23.5%
Total GMNA 21.0% 22.7% 21.5% 23.1%
Total GME 9.1% 9.2% 9.3% 9.4%
Total GMLAAM 16.2% 17.3% 17.1% 17.0%
Total GMAP * 7.2% 7.3% 7.0% 6.9%
Total Worldwide 12.0% 13.1% 12.4% 13.3%
U.S. Retail/Fleet Mix (selling
day adjusted):
% Fleet Sales - Cars 45.6% 31.2% 34.8% 34.9%
% Fleet Sales - Trucks 23.2% 19.6% 22.4% 20.5%
Total Vehicles 32.2% 23.9% 27.6% 26.1%
GMNA Capacity Utilization *** 72.1% 86.2% 74.7% 88.5%
***Two shift rated, annualized.
General Motors Corporation
Operating Statistics
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
GMAC's share of GM
retail sales
(U.S. only)
Total consumer volume
(retail and lease)
as % of retail 5% 43% 33% 45%
SmartLease/SmartBuy
as % of retail 0% 13% 11% 17%
Worldwide Employment (Thousands)
at December 31:
-----------
United States -
Hourly 62 78
United States -
Salaried 29 32
-- --
Total United States 91 110
Canada, Mexico and
Other 25 29
-- --
GMNA 116 139
GME 55 57
GMLAAM 35 34
GMAP 35 34
Other 2 2
- -
Total GM 243 266
=== ===
(Billions)
----------
Worldwide Payroll $3.8 $4.6 $16.8 $18.0
Footnotes:
(a) Auto Eliminations, Corporate & Other and Other Financing include inter-company eliminations.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended
December 31,
-------------------------------
2008 2007
---- ----
Net sales and revenue
Automotive sales $30,612 $46,518
Financial services and insurance
revenue 166 286
--- ---
Total net sales and revenue 30,778 46,804
------ ------
Costs and expenses
Automotive cost of sales 33,092 43,805
Selling, general and administrative
expense 3,549 4,207
Financial services and insurance
expense 202 301
Other expenses 1,271 1,174
----- -----
Total costs and expenses 38,114 49,487
------ ------
Operating loss (7,336) (2,683)
Equity in loss of GMAC LLC (Note 9) (1,406) (371)
Automotive and other interest expense (308) (664)
Automotive interest income and other
non-operating income, net 259 509
--- ---
Loss from continuing operations
before income taxes, equity income
and minority interests (8,791) (3,209)
Income tax expense (benefit) 737 (1,643)
Equity income (loss), net of tax (124) 84
Minority interests, net of tax 56 (45)
-- ----
Loss from continuing operations (9,596) (1,527)
Discontinued operations (Note 4)
Income from discontinued operations,
net of tax - -
Gain on sale of discontinued
operations, net of tax - 805
- ---
Income from discontinued operations - 805
- ---
Net loss $(9,596) $(722)
======== ======
Earnings (loss) per share, basic and
diluted
Continuing operations $(15.71) $(2.70)
Discontinued operations - 1.42
- ----
Net loss per share basic and diluted $(15.71) $(1.28)
======== =======
Weighted-average common shares
outstanding, basic and diluted
(millions) 611 566
=== ===
Cash dividends per share $- $0.25
========== =====
28
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
Years Ended December 31,
------------------------
2008 2007 2006
---- ---- ----
Net sales and revenue
Automotive sales $147,732 $177,594 $170,651
Financial services and insurance
revenue 1,247 2,390 33,816
----- ----- ------
Total net sales and revenue 148,979 179,984 204,467
------- ------- -------
Costs and expenses
Automotive cost of sales 149,311 165,573 163,214
Selling, general and administrative
expense 14,253 14,412 13,650
Financial services and insurance
expense 1,292 2,209 29,188
Other expenses 5,407 2,099 4,238
----- ----- -----
Total costs and expenses 170,263 184,293 210,290
------- ------- -------
Operating loss (21,284) (4,309) (5,823)
Equity in loss of GMAC LLC (Note 9) (6,183) (1,245) (5)
Automotive and other interest
expense (2,345) (2,983) (2,642)
Automotive interest income and other
non-operating income, net 424 2,284 2,812
--- ----- -----
Loss from continuing operations
before income taxes, equity income
and minority interests (29,388) (6,253) (5,658)
Income tax expense (benefit) 1,766 37,162 (3,046)
Equity income, net of tax 186 524 513
Minority interests, net of tax 108 (406) (324)
--- ----- -----
Loss from continuing operations (30,860) (43,297) (2,423)
Discontinued operations (Note 4)
Income from discontinued operations,
net of tax - 256 445
Gain on sale of discontinued
operations, net of tax - 4,309 -
- ----- -
Income from discontinued operations - 4,565 445
- ----- ---
Net loss $(30,860) $(38,732) $(1,978)
========= ========= ========
Earnings (loss) per share, basic and
diluted
Continuing operations $(53.32) $(76.52) $(4.29)
Discontinued operations - 8.07 0.79
- ---- ----
Net loss per share basic and diluted $(53.32) $(68.45) $(3.50)
======== ======== =======
Weighted-average common shares
outstanding, basic and diluted
(millions) 579 566 566
=== === ===
Cash dividends per share $0.50 $1.00 $1.00
===== ===== =====
29
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
December 31,
------------
2008 2007
---- ----
ASSETS
Current Assets
Cash and cash equivalents $13,953 $24,549
Marketable securities 13 2,139
-- -----
Total cash and marketable securities 13,966 26,688
Accounts and notes receivable, net 7,711 9,659
Inventories 13,042 14,939
Equipment on operating leases, net 3,363 5,283
Other current assets and deferred income taxes 3,142 3,566
----- -----
Total current assets 41,224 60,135
Financing and Insurance Operations Assets
Cash and cash equivalents 100 268
Investments in securities 128 215
Equipment on operating leases, net 2,221 6,712
Equity in net assets of GMAC LLC 491 7,079
Other assets 1,567 2,715
----- -----
Total Financing and Insurance Operations assets 4,507 16,989
Non-Current Assets
Equity in net assets of nonconsolidated affiliates 1,655 1,919
Property, net 39,656 43,017
Goodwill and intangible assets, net 265 1,066
Deferred income taxes 98 2,116
Prepaid pension 109 20,175
Other assets 3,533 3,466
----- -----
Total non-current assets 45,316 71,759
------ ------
Total assets $91,047 $148,883
======= ========
Current Liabilities
Accounts payable (principally trade) $22,236 $29,439
Short-term borrowings and current portion
of long- 15,754 6,047
Accrued expenses 35,921 34,024
------ ------
Total current liabilities 73,911 69,510
Financing and Insurance Operations Liabilities 23 30
Accounts payable
Debt 1,192 4,908
Other liabilities and deferred income taxes 607 875
--- ---
Total Financing and Insurance Operations
liabilities 1,822 5,813
Non-Current Liabilities
Long-term debt 29,594 33,384
Postretirement benefits other than pensions 28,919 47,375
Pensions 25,178 11,381
Other liabilities and deferred income taxes 16,963 16,900
------ ------
Total non-current liabilities 100,654 109,040
------- -------
Total liabilities 176,387 184,363
Commitments and contingencies (Note 18) 814 1,614
Minority interests
Stockholders' Deficit
Preferred stock, no par value, authorized
6,000,000, no shares issued and outstanding - -
Preference stock, $0.10 par value, authorized
100,000,000 shares, no shares issued
and outstanding - -
$1 2/3 par value common stock
(2,000,000,000 shares authorized, 800,937,541
and 610,483,231 shares issued and outstanding
at December 31, 2008, respectively, and
756,637,541 and 566,059,249 shares issued
and outstanding at December 31, 2007,
respectively) 1,017 943
Capital surplus (principally additional
paid-in capital) 15,755 15,319
Accumulated deficit (70,610) (39,392)
Accumulated other comprehensive loss (32,316) (13,964)
-------- --------
Total stockholders' deficit (86,154) (37,094)
-------- --------
Total liabilities, minority interests, and
stockholders' deficit $91,047 $148,883
========== ==========
SOURCE General Motors Corporation
