General Motors Reports Full Year 2016 Net Income Of $9.4 Billion On Revenue Of $166.4 Billion3
General Motors’ earnings for the complete 2016 calendar year were highlighted by a 14 percent increase in revenue to $166.4 billion and an increase in Return on Invested Capital (ROIC) to 28.9 percent when compared to calendar year 2015. In addition, calendar year 2016 also had the following earnings records:
- EBIT-adjusted of $12.5 billion, up 15.9 percent
- EBIT-adjusted margin of 7.5 percent, up 0.4 percentage points
- EPS-diluted of $6.00, up 1.5 percent
- EPS-diluted-adjusted of $6.12, up 21.9 percent
- Revenue of $166.4 billion, up 9.2 percent
- Automotive-adjusted free cash flow of $6.9 billion, up $4.7 billion
- North America EBIT-adjusted of $12.0 billion
General Motors Calendar Year 2016 Financial ResultsAll figures in billions except for earnings per share (EPS) amounts (which are in dollars per share) as well as EBIT-adjusted margin and ROIC figures (which are percentages)
|METRIC||2016||2015||2016 - 2015||% CHANGE 2016 / 2015|
|NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS||$9.4||$9.7||-0.30||-3.09%|
|EARNINGS PER SHARE (EPS) DILUTED||$6.00||$5.91||+0.09||+1.52%|
|NET CASH FROM OPERATING ACTIVITIES (AUTOMOTIVE)||$14.3||$10.0||+4.30||+43%|
|% EBIT-ADJUSTED MARGIN||7.5%||7.1%||+0.40%||+0.40%|
|EPS-DILUTED ADJUSTED ($/SHARE)||$6.12||$5.02||+1.10||+21.91%|
|ADJUSTED AUTOMOTIVE FREE CASH FLOW||$6.9||$2.2||+4.70||+213.64%|
|RETURN ON INVESTED CAPITAL-ADJUSTED (ROIC ADJUSTED)||28.9%||27.2%||+1.70%||+1.70%|
Net revenue for calendar year 2016 was $166.4 billion, an increase of $14 billion or 9.2 percent compared to $152.4 billion for 2015. The increase was driven primarily by increased volumes in North America as well as growth at GM Financial.
Net income attributable to common shareholders for calendar year 2016 was $9.4 billion, down $300 million or 3 percent over calendar year 2015.
Earnings Before Interest And Tax (EBIT) And EBIT-Adjusted Margin
Earnings before interest and tax (EBIT) adjusted was a record-setting $12.5 billion and EBIT-adjusted margin of 7.5 percent for the 2016 calendar year. These compare to EBIT-adjusted of $10.8 billion and EBIT-adjusted margin of 7.1 percent in calendar year 2015.
As such, EBIT-adusted saw an increase of $1.7 billion or 15.9 percent year-over-year while EBIT-adjusted margin increased r0 bps or 7.5 percent thanks to improved earnings in all segments, with the exception of GMIO.
Earnings Per Share
Earnings per share diluted-adjusted was $6.12 per share in 2016, up $1.10 or 22 percent over EPS diluted-adjusted of $5.02 per share in calendar year 2015.
Cash Flow And Liquidity
In calendar year 2016, net cash from automotive operating activities reached $14.3 billion, up 4.3 billion or 43 percent from $10 billion in 2015.
Calendar year 2016 adjusted automotive free cash flow reached a record $6.9 billion, up 213 percent or 4.7 billion, from $2.2 billion in 2015. This was driven primarily by higher EBIT-adjusted, lower recall-related payments, favorable rental car activity and sales allowance timing, partially offset by higher capital expenditures.
Return On Invested Capital (ROIC)
Return On Invested Capital (ROIC) was a record 28.9 percent in calendar year 2016, up 170 bps over the 27.2 percent in 2015.
Global Vehicle Deliveries & Market Share
GM delivered 10 million vehicles globally in calendar year 2016, up 100,000 units or 3.3 percent over calendar year 2015. Volume gains were mostly seen in North America and China while being offset by reductions in International Operations (excluding China).
Calendar year 2016 market share decreased by 30 bps driven primarily by the strategy to reduce daily rental volumes in the United States as well as overall market growth outpacing strong sales momentum in China.
Regional Division Results
- GM North America calendar year 2016 EBIT-adjusted reached a record of $12.047 billion with an EBIT-adjusted margin of 10.1%, achieving the target of 10% or higher
- Based on GM North America’s 2016 financial performance, approximately 52,000 eligible GM U.S. hourly employees will receive up to a maximum profit sharing payout of $12,000.
- GM Europe calendar year 2016 EBIT-adjusted was negative $257 million, an improvement of $556 million year-over-year despite the impact of Brexit
- GM International Operations calendar year 2016 EBIT-adjusted was $1.135 billion, down $262 million mostly due to macro-economic difficulties in GM’s Middle East Operations as a result of of low global oil prices. Economic conditions in GM’s Consolidated International Operations are expected to remain difficult.
- GM South America calendar year 2016 EBIT-adjusted was negative $374 million, up $248 million
- GM Financial calendar year 2016 earnings before income taxes were $913 million, up $76 million
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Do gm employees that retired during 2016 receive a prorated amount of profit sharing?
Donna — that’s a good question that I’m afraid we don’t know the answer to. I’d check with a contact at GM, such as a supervisor or HR.
Do you guys have any information as to liquidity, profitability, annual sales, growth rate, leverage for the company in years 2014-2017? Need for a project.