EX-99.1 2 q12018earnings042618.htm EXHIBIT 99.1 - 2018 Q1 EARNINGS RELEASE q12018earnings042618
FIRST-QUARTER 2018 EARNINGS • Income from continuing operations impacted by $0.9 billion pre-tax charge related to Korea restructuring. • EBIT-adj. reflects full-size truck launch-related downtime. The all-new truck launch is on plan. • GM North America EBIT-adj. margin of 8.0%; on track to sustain 10-percent full-year margin. EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS Diluted-adj. Non-GAAP 7.2% $2.6 B $(3.5) B $1.43 Vs. Q1 2017 (2.3) pts (26.6) % $(2.8) B (18.3)% Q 1 2 0 1 8 R E S U LT S O V E R V I E W Net Revenue Income Auto Operating Cash Flow EPS-Diluted GAAP $36.1 B $1.1 B $(1.2) B $0.77 Vs. Q1 2017 (3.1) % (58.7) % $(2.3) B (56.0) % “Results this quarter were in line with our expectations with planned, lower production in North America related to the transition to our all-new Chevrolet Silverado and GMC Sierra. We are on plan to deliver another strong year in 2018.” – Mary Barra, Chairman and CEO FROM CONTINUING OPERATIONS IMPACT OF KOREA RESTRUCTURING Deliveries of GM’s newest crossovers in the U.S. and China doubled in the rst quarter year over year, led by the GMC Terrain, the Chevrolet Traverse and Equinox and the all-new Baojun 510 and 530. To build on this crossover success, Cadillac revealed the rst- ever XT4 in March, beginning the expansion of the brand’s successful SUV lineup. In the U.S., the Cadillac XT4 can be pre-ordered now, with the rst deliveries expected this fall. Cadillac will introduce, on average, one new model every six months through 2021. In March, adding to the strength of the GMC brand and Denali lineup, GM revealed the next-generation 2019 GMC Sierra Denali and SLT, and the all-new Sierra AT4 full-size pickups, which will go on sale later this year in North America. The Sierra AT4 introduces the all-terrain four-wheel drive AT4 sub-brand, which will be featured on every model in GMC’s lineup in the next two years. GM China, with its JV partners, plans to introduce 15 new and refreshed models in 2018, sharpening its focus on the strong SUV, MPV and luxury vehicle segments. About half of these products will be SUVs and MPVs. The rst of the 15 models, the Baojun 530 compact SUV, went on sale in March. PRODUCT MOMENTUM To continue to strengthen core business performance and address underper forming markets, GM announced its decision to cease production and close the Gunsan Korea plant by the end of May 2018. GM recorded a $942-million pre-tax charge, considered special for EBIT-adjusted and EPS diluted-adjusted, related to asset impairment and termination bene ts. The charge included $464 million in non-cash asset impairments. GM Reports Income of $1.1 Billion and EBIT-adjusted of $2.6 Billion As expected, rst-quarter free cash ow was meaningfully below the rst quarter of 2017 primarily due to planned, lower full-size truck production, and incremental capital spending to support the launches of GM’s all-new Chevrolet Silverado, GMC Sierra and GEM. GM continues to expect its 2018 core adjusted automotive free cash ow to be in line with 2017 results as the company bene ts from strong EBIT- adjusted performance and favorable seasonal cash ow factors later this year. ADJUSTED AUTOMOTIVE FREE CASH FLOW Exhibit 99.1


 
“ North America International GM Financial (EBT) Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 2.2 3.5 0.2 0.2 0.4 0.2 EBIT-adj. and margin of 8.0% reect planned downtime in support of new full-size truck launches. Record EBT-adj. was driven by strong retail originations and stable credit and residual performance. S E G M E N T R E S U LT S ( E B I T- A D J U ST E D F R O M C O N T I N U I N G O P E R AT I O N S - $ B ) Results were driven by record equity income in China of $0.6 billion and continued improvement in South America. GM delivered 715,794 vehicles in the rst quarter in the United States, up 4 percent ahead of an estimated industry increase of about 2 percent. Year-over-year total crossover sales in the U.S. rose 23 percent across all brands: Q1 VEHICLE SALES LIQUIDITY ($B) Q1 18 Q4 17 Cash and Current Marketable Securities 17.2 19.6 Total Auto Liquidity 31.3 33.6 We were protable in all operating segments, including record performance in China and for GM Financial. Our Q1 results were on plan and we remain condent in the full-year guidance we announced in January.” – Chuck Stevens, Executive Vice President and CFO “ After more than a year of building test vehicles for development of its self-driving technology, GM announced it will build production versions of its Cruise AV at its Orion Township assembly plant in Michigan. Roof modules for GM’s self-driving vehicles will be assembled at its Brownstown plant. Having all AV capabilities under one roof has allowed GM to continue making signicant progress on its plans to achieve commercialization at scale in a dense, urban environment in 2019. DRIVING TO THE FUTURE OF MOBILITY The Chevrolet Bolt EV, Equinox, Traverse and Trax; Buick Encore and Envision; GMC Terrain; and Cadillac XT5 all set delivery records in the rst quarter. GM China’s rst-quarter sales reached an all-time high, delivering a record 986,052 units. Baojun’s growth of almost 20 percent in the quarter included the strong performance of its newest crossover, the Baojun 530, which sold 11,000 units after launching on March 11. For more details on GM’s global sales, click here. Chevrolet Buick GMC Cadillac + 28% + 17% + 21% + 10% Cruise AV


 
Cautionary Note on Forward-Looking Statements. This press release and related comments by management may include forward-looking statements. These statements are based on current expectations about possible future events and thus are inherently uncertain. Our actual results may dier materially from forward-looking statements due to a variety of factors, including: (1) our ability to deliver new products, services and experiences that attract new, and are desired by existing, customers and to eectively compete in autonomous, ride-sharing and transportation as a service; (2) sales of crossovers, SUVs and full-size pick-up trucks; (3) our ability to reduce the costs associated with the manufacture and sale of electric vehicles; (4) the volatility of global sales and operations; (5) our signicant business in China which subjects us to unique operational, competitive and regulatory risks; (6) our joint ventures, which we cannot operate solely for our benet and over which we may have limited control; (7) changes in government leadership and laws (including tax laws), economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates, economic downturns in foreign countries, diering local product preferences and product requirements, compliance with U.S. and foreign countries' export controls and economic sanctions, diering labor regulations and diculties in obtaining nancing in foreign countries; (8) our dependence on our manufacturing facilities; (9) the ability of suppliers to deliver parts, systems and components without disruption and on schedule; (10) prices of raw materials; (11) our highly competitive industry; (12) the possibility that competitors may independently develop products and services similar to ours despite our intellectual property rights; (13) security breaches and other disruptions to our vehicles, information technology networks and systems; (14) compliance with laws and regulations applicable to our industry, including those regarding fuel economy and emissions; (15) costs and risks associated with litigation and government investigations; (16) compliance with the terms of the Deferred Prosecution Agreement; (17) the cost and eect on our reputation of product safety recalls and alleged defects in products and services; (18) our ability to successfully and cost-eciently restructure operations in various countries, including Korea, with minimal disruption to our supply chain and operations, globally; (19) our ability to realize production eciencies and to achieve reductions in costs; (20) our ability to develop captive nancing capability through GM Financial; and (21) signicant increases in pension expense or projected pension contributions. A further list and description of these risks, uncertainties and other factors can be found in our Annual Report on Form 10-K, and our subsequent lings with the Securities and Exchange Commission. GM cautions readers not to place undue reliance on forward-looking statements. GM undertakes no obligation to update publicly or otherwise revise any forward-looking statements. General Motors Co.(NYSE: GM), its subsidiaries and joint venture entities produce and sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang and Wuling brands. GM has leadership positions in several of the world'smost signicantautomotive markets and is committed to lead the future of personal mobility. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com. Tom Henderson GM Finance Communications 313-410-2704 tom.e.henderson@gm.com Media Investors CONTACTS Michael Heifler GM Investor Relations 313-418-0220 michael.heifler@gm.com