General Motors’ full year 2015 earnings are highlighted by a net income of $9.7 billion, or $5.91 per fully diluted share, and revenue of $152.4 billion. The results compare favorably to net income of $2.8 billion, or $1.65 per diluted share, on revenue of $155.9 billion in 2014.
“It was a strong year on many fronts, capped with record sales and earnings, and a substantial return of capital to our shareholders,” said Chairman and CEO Mary Barra. “We continue to strengthen our core business, which is laying the foundation for the company to lead in the transformation of personal mobility. We believe the opportunities this will create in connectivity, autonomous, car-sharing and electrification will set the stage for driving value for our owners for years to come.”
General Motors Full Year 2015 Financial Results
Figures in billions except for per share amounts and percentages| METRIC | 2015 | 2014 | 2015 - 2014 | % CHANGE 2015 / 2014 |
|---|---|---|---|---|
| REVENUE | $152.40 | $155.90 | -3.50 | -2.25% |
| NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $9.70 | $2.80 | +6.90 | +246.43% |
| EARNINGS PER SHARE (EPS) DILUTED | $5.91 | $1.65 | +4.26 | +258.18% |
| IMPACT OF SPECIAL ITEMS ON EPS DILUTED | $0.89 | $(1.40) | +2.29 | +163.57% |
| EPS DILUTED - ADJUSTED | $5.02 | $3.05 | +1.97 | +64.59% |
| EBIT-ADJUSTED | $10.80 | $6.50 | +4.30 | +66.15% |
| % EBIT-ADJUSTED MARGIN | 7.10 | 4.20 | +2.90 | +69.05% |
| AUTOMOTIVE NET CASH FLOW FROM OPERATING ACTIVITIES | $10.00 | $10.10 | -0.90 | -29.03% |
| ADJUSTED AUTOMOTIVE FREE CASH FLOW | $2.20 | $3.10 | -0.90 | -29.03% |
| % RETURN ON INVESTED CAPITAL (ROIC) | 27.2 | 15.4 | +11.80 | +76.62% |
Earnings Before Interest And Tax (EBIT)
Full-year earnings before interest and tax (EBIT) adjusted rose to a record $10.8 billion, up from $6.5 billion in 2014. EBIT adjusted margin for the year also increased to a record 7.1 percent, compared to 4.2 percent in 2014.
Earnings Per Share
Earnings per share (EPS) adjusted for special items was $5.02, up 65 percent compared to $3.05 in 2014.
Revenue
Total net revenue for the year was $152.4 billion, compared to $155.9 billion in 2014. The change in net revenue is due primarily to a negative net foreign currency exchange impact of $9.3 billion. Holding exchange rates constant, net revenue in 2015 was $5.8 billion higher than 2014.
Special Items
Special items during the calendar year impacted full-year net income to common stockholders favorably, $1.5 billion, or $0.89 per share, compared to an unfavorable $(2.4) billion impact in 2014, or $(1.40) per share. Among these special items were a net gain from the reversal of certain valuation allowances on deferred tax assets, and charges for litigation matters related to the ignition switch recall and a Venezuelan bolivar currency devaluation.
Regional Division Results
- GM North America (GMNA) reported full-year 2015 EBIT-adjusted of $11.0 billion and EBIT-adjusted margin of 10.3 percent, both of which were records. That compares to EBIT-adjusted of $6.6 billion and EBIT-adjusted margin of 6.5 percent in 2014. Based on GMNA’s 2015 financial performance, the company will pay profit sharing of up to $11,000 to approximately 49,600 eligible GM U.S. hourly employees.
- GM Europe (GME) reported full-year 2015 EBIT-adjusted of $(0.8) billion (an $800 million loss) compared to $(1.4) billion ($1.4 billion loss) in 2014.
- GM International Operations (GMIO) reported full-year EBIT-adjusted of $1.4 billion compared to $1.2 billion in 2014. Results included China equity income of $2.1 billion for the full year.
- GM South America (GMSA) reported full-year 2015 EBIT-adjusted of $(0.6) billion compared to EBIT-adjusted of $(0.2) billion in 2014.
- GM Financial reported full-year 2015 earnings before taxes (EBT) of $0.8 billion, compared to $0.8 billion in 2014.
Cash Flow And Liquidity
For the year, adjusted automotive free cash flow was $2.2 billion, compared to $3.1 billion a year ago.
GM ended 2015 with total automotive liquidity of $32.5 billion compared to $37.2 billion at year-end in 2014. Automotive cash and marketable securities was $20.3 billion at the end of 2015, compared to $25.2 billion a year earlier.
In 2015, GM returned approximately $5.7 billion to shareholders, including $2.2 billion in common stock dividends and $3.5 billion through the GM common stock repurchase program.
Expectations
Based on its strong operating performance in 2015 and consistent with the outlook provided in January, the company reaffirms its expectation that its EPS-adjusted will be between $5.25 and $5.75 in 2016.
Comments
As done before, GM must share some of its gains with each and every worker, employee, and executive as a grand motivation to keep GM growing. Then use more money for research into additional hybrid and electric vehicles for our future.
Good work, GM!
All North American UAW workers getting $11K, far more than the measly $4K at FCA and 9K at Ford. As a GM salaried worker I cannot wait for that end of Feb check with that nice Team GM payout!