General Motors’ first quarter 2016 earnings are highlighted by a net income of $2.0 billion, or $1.24 per share, on net revenue of $37.3 billion.
“We’re growing where it counts, gaining retail share in the U.S., outpacing the industry in Europe and capitalizing on robust growth in SUV and luxury segments in China,” said Chairman and CEO Mary Barra. “This strong quarter also reflects the excellent progress we’re making to improve results in our more challenged global markets. Importantly, the continued success of our core business is enabling us to invest in advanced technology and innovations that will help shape the future of personal mobility.”
General Motors Q1 2016 Financial ResultsFigures in billions of U.S. Dollars except for per share amounts and percentages
|METRIC||Q1 2016||Q1 2015||Q1 2016 - Q1 2015||% CHANGE Q1 2016 / Q1 2015|
|NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS||$2.00||$0.90||+1.10||+122.22%|
|EARNINGS PER SHARE (EPS) DILUTED||$1.24||$0.56||+0.68||+121.43%|
|IMPACT OF SPECIAL ITEMS ON EPS DILUTED||-$0.02||-$0.3||+0.28||+93.33%|
|EPS DILUTED - ADJUSTED||$1.26||$0.86||+0.40||+46.51%|
|% EBIT-ADJUSTED MARGIN||7.10%||5.80%||+1.3||+22.41%|
|AUTOMOTIVE NET CASH FLOW FROM OPERATING ACTIVITIES||-$0.70||$0.00||+0.20||+11.76%|
|ADJUSTED AUTOMOTIVE FREE CASH FLOW||-$1.5||-$1.7||+0.20||+11.76%|
|% RETURN ON INVESTED CAPITAL (ROIC)||28.5||19.5||+9.00||+46.15%|
Earnings Before Interest And Tax (EBIT)
The company set first-quarter records for earnings and margin, with earnings before interest and tax (EBIT) adjusted of $2.7 billion and EBIT-adjusted margin of 7.1 percent. These compare to EBIT-adjusted of $2.1 billion and an EBIT-adjusted margin of 5.8 percent in the first quarter of 2015.
First-quarter 2016 EBIT-adjusted results included the impact of $0.3 billion restructuring costs, primarily in North America, compared to $0.1 billion in restructuring costs a year ago.
Earnings Per Share
During the quarter, earnings per share (EPS) diluted was $1.26, up 46.91 percent (or $0.40) compared to the first quarter of 2015.
Net revenue during the quarter was $37.3 billion compared to $35.7 billion in the first quarter of 2015. Holding exchange rates constant, net revenue was $2.9 billion higher than the first quarter of 2015.
Regional Division Results
- GM North America (GMNA) reported EBIT-adjusted of $2.3 billion in the first quarter of 2016, up from $2.2 billion in the first quarter of 2015. The $2.3 billion in Q1 2016 includes $0.2 billion for restructuring costs.
- GM Europe (GME) reported EBIT-adjusted break-even results in the first quarter of 2016 compared with a loss of $200 million in the first quarter of 2015.
- GM International Operations (GMIO) reported EBIT-adjusted of $0.4 billion in the first quarter of 2016, flat over the $0.4 billion in 2015. Results include China equity income of $0.5 billion in both periods.
- GM South America (GMSA) reported an EBIT-adjusted loss of $0.1 billion in the first quarter of 2016, compared with an EBIT-adjusted loss of $0.2 billion in the first quarter of 2015.
- GM Financial reported earnings before taxes (EBT) of $0.2 billion in the first quarter of 2016, about equal to a year ago.
Cash Flow And Liquidity
For the quarter, automotive cash flow from operating activities was $(0.7) billion. Adjusted automotive free cash flow was $(1.5) billion, improved from $(1.7) billion in the first quarter of 2015. GM ended the quarter with total automotive liquidity of $30.6 billion, and automotive cash and marketable securities of $18.5 billion.
Year-to-date through March 31, GM has returned approximately $0.9 billion of cash to shareholders through share repurchases of $0.3 billion and dividends of $0.6 billion.
“The quarter was a great start to a year in which we anticipate strong growth in earnings and free cash flow,” said Chuck Stevens, GM executive vice president and chief financial officer.