DETROIT – General
Motors Co. announced 2012 calendar-year net income attributable to
common stockholders of $4.9 billion, or $2.92 per fully diluted share,
down from $7.6 billion, or $4.58 per fully diluted share in 2011, due
primarily to unfavorable special items.
Special items during
the calendar year impacted full-year net income to common stockholders
unfavorably, $(0.5) billion, or $(0.32) per share, compared to a
favorable $1.2 billion impact in 2011, or $0.70 per share.
Revenue increased 1
percent to $152.3 billion, compared with $150.3 billion in 2011.
Full-year earnings before interest and tax (EBIT) adjusted was $7.9
billion, compared with $8.3 billion in 2011. Full-year EBIT-adjusted for
2012 includes the impact of restructuring charges of $(0.4) billion.
“We recorded another
solid year in 2012 as we grew the business, delivered a third straight
year of profitability and took significant actions to put the company on
a solid path for future growth,” said Dan Akerson, chairman and CEO.
“This year our priorities will be executing flawless new vehicle
launches, controlling costs and delivering more vehicles to our
customers at outstanding value.”
“We’re pleased with our fourth quarter
results, as the business generated strong adjusted free cash flow and we
took significant steps to strengthen our fortress balance sheet,” said
Dan Ammann, senior vice president and CFO. “Our aggressive vehicle
launch cadence and focus on improving the topline, combined with
rigorous cost discipline will help us continue to generate strong
business results moving forward.”
Fourth Quarter Results
Revenue in the fourth quarter of 2012
increased 3 percent to $39.3 billion, compared with the fourth quarter
of 2011. GM’s fourth quarter 2012 net income attributable to common
stockholders was $0.9 billion, or $0.54 per fully diluted share,
including a net gain from special items of $0.1 billion or $0.06 per
fully diluted share.
In the fourth quarter of 2011, GM’s net
income attributable to common stockholders was $0.5 billion, or $0.28
per fully diluted share, including a net loss from special items of
$(0.2) billion, or $(0.11) per fully diluted share.
EBIT-adjusted was $1.2 billion in the
fourth quarter of 2012, compared with $1.1 billion in the fourth quarter
of 2011. Fourth quarter EBIT-adjusted for 2012 includes the impact of
restructuring charges of $(0.2) billion.
GM’s fourth quarter 2012 special items
impact to net income of $0.1 billion includes a $34.9 billion non-cash
benefit from the release of the majority of the company’s valuation
allowances on U.S. and Canada deferred tax assets and an associated
$(26.2) billion non-cash goodwill impairment charge; a $(5.2) billion
non-cash impairment of GM Europe long-lived assets; and a $(2.2) billion
charge related to U.S. salaried pension plan actions announced earlier
this year, among other smaller items.
The non-cash impairment of GM Europe
long-lived assets does not reflect any change to the company’s objective
to break even in its European operations by mid-decade.
Overview (in billions except for per share
amounts)
Q4 2011
Q4 2012
Full-year
2011
Full-year
2012
Revenue
$38.0
$39.3
$150.3
$152.3
Net income
attributable to common stockholders
$0.5
$0.9
$7.6
$4.9
Earnings
per share
(EPS) fully diluted
$0.28
$0.54
$4.58
$2.92
Impact of
special items on EPS fully diluted
$(0.11)
$0.06
$0.70
$(0.32)
EBIT-adjusted
$1.1
$1.2
$8.3
$7.9
Automotive
net cash flow from operating activities
$1.2
$0.5
$7.4
$9.6
Adjusted
automotive
free cash flow
($0.2)
$1.1
$3.0
$4.3
Segment Results
■GM North America (GMNA) reported
EBIT-adjusted of $1.4 billion in the fourth quarter of 2012 compared
with $1.5 billion in 2011. Full-year EBIT-adjusted was $7.0 billion in
2012 compared to $7.2 billion in 2011. Based on GMNA’s 2012 financial
performance, the company will pay profit sharing of up to $6,750 to
approximately 49,000 eligible GM U.S. hourly employees.
■GM Europe (GME) reported EBIT-adjusted of
$(0.7) billion in the fourth quarter of 2012, compared to $(0.6) billion
in 2011. Full-year EBIT-adjusted was $(1.8) billion in 2012, compared
with $(0.7) billion in 2011.
■GM International Operations (GMIO)
reported EBIT-adjusted of $0.5 billion in the fourth quarter of 2012
compared with $0.4 billion in 2011. Full-year EBIT-adjusted was $2.2
billion in 2012 compared with $1.9 billion in 2011.
■GM South America (GMSA) reported
EBIT-adjusted of $0.1 billion in the fourth quarter of 2012, compared
with $(0.2) billion in 2011. Full-year EBIT-adjusted was $0.3 billion in
2012 compared with EBIT-adjusted of $(0.1) billion in 2011.
■GM Financial reported earnings before
taxes (EBT) of $0.1 billion in the fourth quarter of 2012, compared with
$0.2 billion in 2011. Full-year EBT was $0.7 billion, compared to $0.6
billion in 2011.
Cash Flow and Liquidity
For the fourth quarter of 2012, automotive
cash flow from operating activities was $0.5 billion, compared to $1.2
billion in 2011. In the fourth quarter of 2012, adjusted automotive free
cash flow was $1.1 billion, compared to $(0.2) billion in 2011. For the
year, adjusted automotive free cash flow was $4.3 billion, compared to
$3.0 billion a year ago.
GM ended 2012 with strong total automotive
liquidity of $37.2 billion compared with $37.0 billion at year-end in
2011. Automotive cash and marketable securities was $26.1 billion at the
end of 2012, compared with $31.6 billion a year earlier.
GM expects capital expenditures for 2013
to be similar to 2012.
U.S. Pension Update
GM’s U.S. defined benefit pension plans
earned asset returns of 11.6 percent in 2012 and ended the year 84
percent funded. The underfunded position stood at $13.1 billion,
slightly improved from the prior year. As previously announced, during
2012 GM settled approximately $28 billion of its U.S. salaried pension
liability through a combination of lump sum offers and annuitizations.
Under current economic conditions, GM
expects no mandatory contributions to U.S. defined benefit pension plans
for at least five years. While the company will continue to evaluate
opportunities to make voluntary cash contributions, it has no current
plans to do so in 2013.
