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.”
| METRIC | Q1 2016 | Q1 2015 | Q1 2016 - Q1 2015 | % CHANGE Q1 2016 / Q1 2015 |
|---|---|---|---|---|
| NET REVENUE | $37.30 | $35.70 | +1.60 | +4.48% |
| 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 | $2.70 | $2.10 | +0.60 | +28.57% |
| % 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% |
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.
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.
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.
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Those are some really strong numbers and a lot of black on the balance sheet.
This news is fantastic and bodes well from all of GM on all facets of their business.
For us enthusiasts it means GM will have more money to invest in new products and may even take a chance or two on borderline models currently in development or awaiting a green light.
Really encouraging is news that GM Europe broke even this quarter compared to losing over $200M in first quarter 2015. It makes GM's goal of break even in Europe for fiscal year 2016 a distinct likelihood.
Also great results for South America considering the carnage going on down there in the auto industry.
I do not think that everyone realizes how important strong financial results are.
Great job Mary and others.
Mary dose deserve a lot of credit but so do the Board Of Directors. They have given her the tools and authority to do a lot of good things for GM. Also Lead Director Tim Solso has helped get GM where its at more then many people will understand. First as Chairman and now as Lead Director. Let's face it, even though Mary is the Chairman, she still answers to the Lead Director. But agreed... excellent job and kudos to Mary and the Board.