General Motors reported first quarter 2013 net income attributable to common stockholders of $900 million, or $0.58 per fully diluted share, from revenue of $36.9 billion.
That represents a $100 million decrease in net income compared to Q1 2012, when The General reported a net income of $1.0 billion, or $0.60 per fully diluted share, and a $900 million drop in revenues from $37.8 billion in Q1 2012.
GM points out that the Q1 2013 results include a net loss from special items that reduced net income by $0.2 billion, or $0.09 per fully diluted share; by comparison, Q1 2012 results included a net loss from special items of $0.6 billion or $0.33 per share.
Furthermore, Q1 2013 earnings before interest and tax (EBIT) adjusted was $1.8 billion, compared to $2.2 billion the first quarter of 2012, while first quarter EBIT-adjusted results for 2013 are impacted by $100 million in restructuring costs.
|Metric||Q1 2013||Q1 2012|
|Net income attributable to common stockholders||$0.9||$1.0|
|Earnings per share (EPS) fully diluted||$0.58||$0.60|
|Impact of special items on EPS fully diluted||($0.09)||($0.33)|
|Automotive net cash flow from operating activities||$0.5||$2.3|
|Adjusted automotive free cash flow||$(1.3)||$0.3|
Regional Division Results
- GM North America reported EBIT-adjusted of $1.4 billion, compared with $1.6 billion in the first quarter of 2012.
- GM Europe reported an EBIT-adjusted of $(0.2) billion, compared with $(0.3) billion in the first quarter of 2012.
- GM International Operations reported EBIT-adjusted of $0.5 billion, compared with $0.5 billion in the first quarter of 2012.
- GM South America broke even on an EBIT-adjusted basis, compared with EBIT-adjusted of $0.2 billion in the first quarter of 2012.
- GM Financial earnings before tax was $0.2 billion for the quarter, compared to $0.2 billion in the first quarter of 2012.
It is worth noting that starting with this quarter, GM “will report segment revenues and profits based on the geographic region in which a vehicle is sold”. Before, “segment results included the impacts of inter-segment sales and profits”, while “prior year segment results have been reclassified so all information is shown on a comparable basis”, with consolidated results being unaffected by this change. Meanwhile, results and earnings for Chevrolet Europe will continue to be recorded in GM International Operations.
Cash Flow and Liquidity
Automotive cash flow from operating activities for the quarter was $0.5 billion, while automotive free cash flow adjusted was $(1.3) billion. GM states that “the change in year-over-year cash flow was primarily the result of lower earnings and a series of timing-related items that GM expects to reverse during the balance of the year.”
The automaker ended the quarter with strong automotive liquidity of $35.3 billion. Automotive cash and marketable securities was $24.3 billion compared with $26.1 billion at year-end 2012.
“In the automotive business, outstanding product is what wins,” said GM senior vice president and CFO Dan Ammann. “With more than 40 new vehicle introductions this year globally, our focus will be on flawless launches of the vehicles that will drive results this year and into 2014.”
The GM Authority Take
We have a fleeting suspicion that profit was down due to the high incentives placed the outgoing GMT900-based trucks, and that come Q2 and Q3, the profits will rebound as new K2XX-based 2014 Silverado and Sierra hit the streets. It will also be interesting to see what effects the continued growth of Cadillac in the U.S. and in China will have on The General’s bottom line.