General Motors’ fourth quarter 2016 earnings were highlighted by a 10.8 percent increase in revenue to $43.9 billion and an increase in Return on Invested Capital (ROIC) to 28.9 percent when compared to the fourth quarter of 2015.
Due to a net loss from special items, net income attributable to common stockholders was down 71 percent, earnings per share (EPS) diluted was down 70 percent, and EBIT-adjusted was down 14.29 percent.
General Motors Q4 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||Q4 2016||Q4 2015||Q4 2016 - Q4 2015||% CHANGE Q4 2016 / Q4 2015|
|NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS||$1.80||$6.30||-4.50||-71.43%|
|EARNINGS PER SHARE (EPS) DILUTED||$1.19||$3.92||-2.73||-69.64%|
|NET CASH FROM OPERATING ACTIVITIES (AUTOMOTIVE)||$4.30||$2.20||+2.10||+95.45%|
|% EBIT-ADJUSTED MARGIN||5.40%||7%||-1.6%||-1.6%|
|ADJUSTED AUTOMOTIVE FREE CASH FLOW||$1.70||$(0.30)||+2.00||+666.67%|
|RETURN ON INVESTED CAPITAL-ADJUSTED (ROIC ADJUSTED)||28.90%||27.20%||+1.7%||+1.7%|
Net revenue for Q4 2016 came in at $43.9 billion, an increase of 10.86 percent compared to $39.6 billion for the fourth quarter of 2015.
Net income attributable to common shareholders for Q4 2016 was $1.8 billion, a substantial decrease of 71.43 percent over Q4 2015.
Though the net income performance appears to be quite negative at first glance, a deeper inspection reveals that they are not quite as bleak. That’s because the Q4 2016 net income is negatively impacted by a grand total of $0.4 billion as a result of including a net loss from special items of $0.1 billion as well as an unfavorable $0.3 billion foreign exchange impact.
Meanwhile, fourth-quarter 2015 net income of $6.3 billion was artificially boosted by a net gain from special items of $4.0 billion, primarily related to the reversal of deferred tax asset valuation allowances in Europe. Fourth-quarter 2016 EBIT-adjusted of $2.4 billion includes an unfavorable $0.5 billion foreign exchange impact, compared to the prior year.
Earnings Before Interest And Tax (EBIT) And EBIT-Adjusted Margin
The company reported earnings before interest and tax (EBIT) adjusted of $2.4 billion and EBIT-adjusted margin of 5.4 percent for the fourth quarter of 2016. These compare to EBIT-adjusted of $2.8 billion and EBIT-adjusted margin of 7 percent in the fourth quarter of 2015.
Earnings Per Share
Earnings per share diluted-adjusted was $1.28 per share in the fourth quarter of 2016. That compares to EPS diluted-adjusted of $1.39 per share in Q4 2015.
Cash Flow And Liquidity
In Q4 2016, net cash from automotive operating activities was $4.3 billion, up from $2.2 billion in Q4 2015. Q4 2016 adjusted automotive free cash flow was $1.7 billion, up from a negative cash flow of $300 million in Q4 2015.
Return On Invested Capital (ROIC)
Return On Invested Capital (ROIC) was 28.9 percent in Q4 2016, up from the 27.2 percent ROIC in Q4 2015.
Global Vehicle Deliveries
GM sold 2.8 million vehicles globally in the fourth quarter of 2016 to customers, about 100,000 vehicles more than in the fourth quarter of 2015. The performance gives the automaker a global market share of 11.5 percent, roughly 10 basis points higher than in Q4 2015.
Regional Division Results
- GM North America Q4 2016 EBIT-adjusted was $2.6 billion, a decrease of $0.2 billion year-over-year
- GM Europe Q4 2016 EBIT-adjusted was negative $200 million, an improvement of $100 million year-over-year despite the impact of Brexit
- GM International Operations Q4 2016 EBIT-adjusted was $300 million, down $100 million due to difficult macro-economic conditions throughout the region, with the exception of China
- GM South America Q4 2016 EBIT-adjusted was negative $100 million, a decrease of $100 million due to foreign exchange, partially offset by improvements in price
- GM Financial contributed solid earnings as it expands its asset base, posting a Q4 2016 EBT of $200 million, flat over Q4 2015