In addition to announcing its full-year 2012 financial results, General Motors also announced its earnings for the fourth quarter of 2012.
Revenue for the last quarter of 2012 increased 3 percent on an annual basis to $39.3 billion. Net income attributable to common stock holders was $0.9 billion, or $0.54 per fully diluted share. The net income figure includes a net gain from special items of $0.1 billion or $0.06 per fully diluted share.
The results compare favorably to GM’s Q4 2011 income attributable to common stock holders of $0.5 billion, or $0.28 per fully diluted share; these results include a net loss from special items of $0.2 billion, or $0.11 per fully diluted share.
Adjusted EBIT was $1.2 billion for Q4 2012, an increase of $0.1 billion compared to Q4 2011. GM took a $0.2 billion restructuring charge during Q4 2012. In addition, the company’s Q4 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”, along with “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.”
What’s more, “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.”
- GM North America (GMNA) reported EBIT-adjusted of $1.4 billion in the fourth quarter of 2012 compared to $1.5 billion in 2011.
- GM Europe (GME) reported EBIT-adjusted of $(0.7) billion in the fourth quarter of 2012, compared to $(0.6) 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.
- GM South America (GMSA) reported EBIT-adjusted of $0.1 billion in the fourth quarter of 2012, compared with $(0.2) 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.
Cash Flow and Liquidity
In the fourth quarter, GM’s automotive cash flow from operating activities was $0.5 billion, compared with $1.2 billion in 2011. In addition, adjusted automotive free cash flow was $1.1 billion, compared with $(0.2) billion in 2011.
GM Q4 2012 Earnings - OverviewIn billions except for per share amounts
|Metric||Q4 2011||Q4 2012||Percent Change|
|Net income attributable to common stockholders||$0.50||$0.90||+80.00%|
|Earnings per shareÊ(EPS) fully diluted||$0.28||$0.54||+92.86%|
|Impact of special items on EPS fully diluted||($0.11)||$0.06||-154.55%|
|Automotive net cash flow from operating activities||$1.20||$0.50||-58.33%|
|Adjusted automotiveÊfree cash flow||($0.20)||$1.10||-650.00%|
The GM Authority Take
With increases in both revenue (3.42 percent) and net income (a whopping 80 percent) on an annual basis, Q4 was a great quarter for The General. We expect the rate of change seen here to pick up greatly in the 2014/2015 time frame — as GM consolidates its global vehicle architectures and launches redesigned versions of its bread-and-butter vehicles, such as the Cruze and Equinox/Captiva.