General Motors has announced third quarter 2013 net income of $700 million, or $0.45 per fully diluted share. The results represent a decrease from $1.5 billion, or $0.89 per fully diluted share during Q3 of 2012. The automaker states that any improvement in operating performance was more than offset by a net loss from special items, as well as an incremental tax expense.
Net income attributable to common shareholders includes a net loss from special items of $900 million, or $0.51 per fully diluted share. These items include $800 billion related to the repurchase of 120 million shares of preferred Series A Stock. In addition, GM stated that the results were impacted by incremental tax expense of $0.5 billion, or 40.29 per fully diluted share during the quarter, compared to the third quarter of 2012.
GM’s net revenue for Q3 2013 was $39.0 billion compared to $37.6 billion in the third quarter of 2012, and earnings before interest and tax (EBIT) adjusted was 42.6 billion compared to $2.3 billion in the third quarter of 2012.
“We made gains in the third quarter as we improved our North American margins and increased our global share on the strength of our Chevrolet brand,” said Dan Akerson, GM chairman and CEO. “Our efforts to build great cars and trucks and deliver solid financial results were recognized this quarter by Moody’s investment grade rating.”
Geographic Segment Results
All of GM’s geographic segments were profitable except for GM Europe, which reported a loss of $200 million during the quarter:
- GM North America reported EBIT-adjusted of $2.2 billion compared with $1.7 billion in the third quarter of 2012.
- GM Europe reported EBIT-adjusted of $(0.2) billion compared with $(0.5) billion in the third quarter of 2012.
- GM International Operations reported EBIT-adjusted of $0.3 billion compared with $0.8 billion in the third quarter of 2012.
- GM South America reported EBIT-adjusted of $0.3 billion compared with EBIT-adjusted of $0.2 billion in the third quarter of 2012.
- GM Financial earnings before tax was $0.2 billion for the quarter compared to $0.2 billion in the third quarter of 2012.
Cash Flow And Liquidity
During Q3 2013, automotive cash flow from operating activities was $3.3 billion and adjusted automotive free cash flow was $1.3 billion. The automaker ended the quarter with very strong total automotive liquidity of $37.3 billion, while automotive cash and marketable securities was $26.8 billion compared with $24.2 billion for the second quarter of 2013.
“During the quarter strong demand for new vehicles like the Cadillac ATS, Chevrolet Onix and the all-new Chevrolet Silverado helped boost our top-line,” said Dan Ammann, GM executive vice president and CFO. “We also further strengthened our fortress balance sheet and reduced our cost of capital through our $4.5 billion refinancing of high cost obligations.”
|METRIC||Q3 2013||Q3 2012|
|Net income attributable to common stockholders||$0.70||$1.50|
|Earnings per share (EPS) fully diluted||$0.45||$0.89|
|Impact of special items on EPS fully diluted||($0.51)||($0.04)|
|Automotive net cash flow from operating activities||$3.30||$3.10|
|Adjusted automotive free cash flow||$1.30||$1.20|