General Motors Reports First Quarter 2017 Net Income Of $2.6 Billion On Revenue Of $49.9 Billion
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General Motors’ first quarter 2017 earnings were highlighted by a 10.6 percent increase in revenue to $41.2 billion and a 33.5. percent increase in net income to $2.6 billion when compared to the first quarter of 2016.
The automaker reported several first quarter records, including:
- Revenue of $41.2 billion, up 10.6 percent
- EBIT-adjusted of $3.4 billion, up 27.9 percent
- EBIT-adjusted margin of 8.2 percent, up 1.1 points
- EPS-diluted-adjusted of $1.70, up 34.9 percent
- North America EBIT-adjusted of $3.4 billion, up 48.8 percent
- North America revenue of $29.3 billion, up 10.7 percent
In addition, GM Financial’s net revenue of $2.9 billion, up 38.7 percent, set an all-time record.
Revenue
Net revenue for Q1 2017 came in at $41.2 billion, an increase of 10.6 percent compared to $37.3 billion for the first quarter of 2016.
Net Income
Net income attributable to common shareholders for Q1 2017 was $2.6 billion, a substantial increase of 33.5 percent over $2.00 billion in the first quarter of 2016.
Earnings Before Interest And Tax (EBIT) And EBIT-Adjusted Margin
The company reported earnings before interest and tax (EBIT) adjusted of $3.4 billion and EBIT-adjusted margin of 8.2 percent for the first quarter of 2017. These represent increases of 27.9 percent and 1.1 percent, respectively, compared to $2.7 billion and 7.10 percent.
Earnings Per Share
Earnings per share diluted was $1.7 per share in the first quarter of 2017, an increase of 37.1 percent compared to the first quarter 2016.
Cash Flow And Liquidity
In Q1 2017, net cash from automotive operating activities was $1.4 billion, up $2.0 billion from Q1 2016.
Q1 2017 adjusted automotive free cash flow was negative $0.6 billion, an improvement of $0.8 billion from Q1 2016.
Return On Invested Capital (ROIC)
Return On Invested Capital (ROIC) was 29.7 percent in Q1 2017, up from 28.5 percent in Q1 2016.
Global Vehicle Deliveries
GM sold 2.344 million vehicles globally in the first quarter of 2017, down slightly from the 2.378 million in the first quarter of 2016. The performance gives the automaker a global market share of 10.4 percent, down from the 10.6 percent in Q1 2016.
Regional Division Results
- GM North America Q1 2017 performance included a net income of $3.4 billion, up 48 percent compared to $2.298 billion in Q1 2016
- GM Europe Q1 2017 performance included a net income of negative $201 million, up from a negative $6 million in Q1 2016. Last month, GM agreed to sell its European Opel-Vauxhall unit to PSA Group.
- GM International Operations Q1 2017 performance included a net income of $319 million, down 15 percent compared to $379 million in Q1 2016
- GM South America Q1 2017 performance included a net income of negative $115 million, down 41.7 percent from a negative $67 million in Q1 2016
- GM Financial Q1 2017 performance included a net income of $260 million, up 15.5 percent from $225 million in Q1 2016
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“$2.6 billion, a substantial decrease of 33.5 percent over $2.00 billion” – should that not be an “increase”?
GM beat all estimations: earnings per share (EPS) were 15% higher than estimations, revenue was 1 B$ higher than expected. Yet the stock only rose 0.3% over the day… At the same time, TSLA rose 1.74% over the day. Crazy times…
And thus ends the Barra as head of NHTSA conversation.
I am interested in how the sale of Opel will effect GMs profits going forward. I realize that it should take a year or so to get a clear picture of what the affect will be.
It makes me so happy to see GM move on from Opel!
Then make an effort and read the company’s 30 page report on how it will affect them. It’s public information, widely available.
Not in theory! I mean real numbers! I read the report but a company can’t speculate what the real impact will be long term.
Being nice to certain people on this site gets harder and harder.
Apologies if I was rude. I think that report together with the two conference calls gave a pretty good estimate as to what will happen. It’s incrementally beneficial to the bottom line, frees up cashflow, and lowers balance sheet risk allowing for higher EPS and higher buybacks after the transaction closes.
Unfortunately, General Motors becomes more and more dependent of the US market. It doesn’t be very good for the future!
Being nice to people gets harder and harder, MOST, everywhere. The American society in 2017 has become about “”me””. Driving down the road, getting fuel, eating a hamburger along the way, paying attention to peoples words and actions tell the ‘story’. NOT ALL, but ‘mighty many’ for certain. Our school systems and parents are failing in my opinion. …….. GM, its STOCK VALUE, … well the public needs to “dig deep” on the long term value of buying foreign vehicles. I own 5 GM vehicles, maintain them as recommended, and have one with 350,000 miles, most over 100,000 and see no reason to wonder to a ‘foreign port’, as my repair bills are almost zero across the board. Most people do not put all the factors into a decision …… emotions and stupidity drive most folks – my opinion. JUST THINK, … think deep …. what would the American economy look like, IF all vehicles sold in America were GM, Ford (all my), Chrysler built – ?????? And, the profits , taxes , wages all came back to help the American citizen. GM dividends would be a bit greater, I think. Done ranting, SORRY. EEH.