GM Q2 2019 Earnings: $2.4 Billion Income On $36.1 Billion Revenue30
General Motors Company reported second-quarter 2019 earnings today, with the figures headlined by $2.4 billion in income on $36.1 billion in revenue.
Compared to the second quarter of 2018, GM Q2 2019 results represent a $300 million (1.5 percent) increase in income and $700 million decrease in revenue (1.9 percent).
“Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come. We will continue operating our business with discipline, and the vision needed to deliver a stronger future for our employees, customers, and shareholders,” said GM Chairman and CEO Mary Barra.
Adjusted GM Q2 2019 earnings before interest and taxes (EBIT) was $3.0 billion (5.6 percent decrease), earnings per share (EPS) diluted were $1.66 (equal to Q2 2018) and EPS-diluted-adjusted was $1.64 (9.4 percent decrease).
The results were highlighted by the following three factors:
- Strong North America EBIT-adjusted margin of 10.7 percent, pushed by the successful rollout of full-size light-duty pickup trucks.
- GM’s all-new heavy-duty pickups began shipping at the end of Q2 with growth potential throughout Q3 and Q4.
- Significant progress on transformational cost initiatives with $1.1 billion in savings achieved year-to-date.
GM Q2 2019 Earnings Summary
|METRIC||Q2 2019||Q2 2018||Q2 2019 - Q2 2018 (IN $)||% CHANGE Q2 2019 / Q2 2018 (IN %)|
|AUTOMOTIVE OPERATING CASH FLOW||$3.80||$4.00||-0.10||-3.85%|
|EARNINGS PER SHARE (EPS) DILUTED||$1.66||$1.66||0.00||0%|
|NON GAAP METRICS|
|% EBIT-ADJUSTED MARGIN||8.40%||8.70%||0.00||-3.45%|
|ADJUSTED AUTOMOTIVE FREE CASH FLOW||$2.50||$2.60||-0.10||-3.85%|
|EPS DILUTED - ADJUSTED||$1.64||$1.81||-0.17||-9.39%|
“We had a solid second quarter, and expect the second half of the year to be stronger than the first half. Our confidence in our full-year outlook is based on our strong full-size truck rollout, other key launches and ongoing cost savings,” said GM CFO Dhivya Suryadevara.
GM’s four segments performed as follows during the quarter:
- North America: $3.0 billion EBIT-adjusted vs. $2.7 billion in Q2 2018. Results were highlighted by GM’s all-new light-duty trucks, crossovers and transformational cost savings, driving an EBIT-adjusted margin of 10.7 percent.
- International: $0.0 billion (break-even) EBIT-adjusted vs. ($0.1) billion in Q2 2018. The unit experienced lower earnings due to a $400-million decline in China income from a record Q2 2018, partially offset by better performance outside of China.
- GM Financial: $0.5 billion EBT adjusted vs. $0.5 billion in Q2 2018 on revenue of $3.6 billion, a record. Continued portfolio growth contributed to EBT results.
- GM Cruise: $(0.3) billion EBIT-adjusted vs. $(0.2 billion) in 2018. GM Cruise has completed new funding round and announced plans to launch in San Francisco, but not in 2019. Since 2016, Cruise has increased its staff from 40 to 1,500.
Pickup Trucks Update
GM says that its cadenced full-size pickup truck launch remains on track, with sales of the all-new 2019 Chevrolet Silverado and 2019 GMC Sierra light-duty Crew Cabs up double digits year-over-year for the second straight quarter. Overall, GM’s light-duty pickups gained nearly 3 percentage points of retail share from Q1 to Q2, and remained the retail market share leader in the segment (based on J.D. Power figures).
Full production of all cab styles, including more affordable Regular and Double Cabs – started in March, helping normalize availability of the entire lineup. GM’s all-new heavy-duty pickups launched in June, with early production focused on HD Crew Cab models, similar to the light-duty launch cadence. With the previously announced 40,000 unit additional capacity at the GM Flint Assembly plant, the company is poised for significant growth in this segment.
Mid-Engine Corvette C8
In July, GM unveiled the 2020 Chevrolet Corvette Stingray, the company’s first-ever production mid-engine Corvette, to a global audience of nearly 300,000 in 157 countries. The Stingray incorporates new technologies, such as GM’s all-new digital vehicle platform, that the company will use for future vehicles.
In anticipation of strong customer demand, the company is increasing production of the new model, adding a second shift and more than 400 hourly jobs at the GM Bowling Green Assembly plant in Kentucky. Since 2011, GM has invested more than $900 million in this facility. The Corvette will start under $60,000, making it the first affordable V8-powered mid-engine supercar. Corvettes will begin arriving at dealerships late in the fourth quarter.
GM delivered 747,000 vehicles in the United States during the second quarter.
Sales were led by crossovers, which set a Q2 record with a 17 percent increase year-over-year. Highlights include:
- Chevrolet Equinox and Chevrolet Traverse set Q2 sales records
- Sales of every Buick crossover was up year-over-year
- GMC Acadia posted its best first half ever
- All-new Cadillac XT4 continued to lead its segment
U.S. retail market share is estimated to be flat compared to a year ago, with trucks and crossovers off-setting lower passenger car sales.
GM China sold 754,000 vehicles in the second quarter, about 100,000 fewer than the previous year’s quarter, due to an overall market decline, segment shifts and lower demand for outgoing models, likely as a result of the country’s recently-implemented China-6 emissions standards.
Cruise Robo-Taxi Service
In May, GM Cruise received a new equity stake of $1.15 billion, raising its valuation to $19 billion. In July, Cruise announced that it will not launch this year as initially planned. GM says that the department is now taking actions to advance its plans toward launch in San Francisco.
To deploy at large scale, Cruise will:
- Significantly increase its testing and validation miles over the balance of 2019
- Increase community engagement through advertising and live events
- Continue work on the development of a purpose-built autonomous vehicle – the effort of hundreds of talented Cruise, GM and Honda engineers.
GM says that this vehicle will completely reimagine the customer experience from the ground up.
In June, GM announced investments at its Fort Wayne, Flint and Arlington plants to support production expansion for its full-size truck and SUV facilities, bringing investment totals to more than $4.2 billion to prepare for its next-generation truck launches. GM’s new trucks are also driving investments at plants in Moraine, Ohio to expand diesel engine output and in Toledo, Ohio to expand 10-speed transmission production.
These investments support more than 15,000 hourly jobs at these plants. To date, 1,700 of 2,800 hourly employees impacted by transformation actions have been placed in new jobs. Positions are available for all impacted hourly workers at plants supporting growth segments.
In June, Cadillac announced the expansion of Super Cruise to an additional 70,000 miles of compatible highways in the U.S. and Canada. By year-end, it will be available on more than 200,000 total miles of compatible highways. More than 3 million miles have been driven by customers using Super Cruise since its introduction.
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At least cheapening the interior of the new trucks is making GM profit..
Had to give you an upvote considering that is a valid point
“Valid” as in validated? your source that that is what is making GM profitable?
Has social media turned society into a mob of trolls?
Validating sarcasm, you must be proud.
Valid? Yes. The more money a company spends on making a product (cost of goods sold) the less margin they make on it. GM/Marry have stated their focus is on profit and margins.
You’re welcome 🙂
You sound like a smart feller, almost. seriously, all you did was “upvote?” another post.
Where’s your validity, still, source/numbers?
A while back it was reported that GM makes about $17k on full size trucks, so, Dale/KYLE, GM would need to be pretty wasteful on the interior of the new trucks before they wouldn’t turn a profit. Would it work any better?
There are more important areas to spend money in a truck and in no way is the performance of GM tied to the new trucks interior and only a fool, or troll, would seriously think so.
And what would you expect the interior of a Work Truck to look like? On the other end, the Denalis have very nice interiors.
When the 3 piece suit crowd moves on to the next trend, and the people buying trucks are the people who actually need a truck. Interiors become a very low priority.
Your interpretation of a Denali has a nice interior, is in the eye of the beholder, ( your opinion )
And your opinion on this subject is not the majority of opinions, in the marketplace.
My opinion, and I ordered a 2020 Denali HD, is the dash center is horrible.
A work truck, sure that is ok, ok, just ok, not good, not great, just ok.
But a $70,000 Denali, terrible, in my opinion.
And I am not a three piece suit crowd, I use my Denali for work, its a truck, I work.
And just like all the other advancements in trucks over the years, the people who buy these used, would have appreciated an upgrade.
After all, do you remember when you got a work truck with only crank windows and no radio ?
Or even a single cab, but now most work trucks are crew cabs!
In my opinion, this dash in the new Denali and High Country, or even the top end trucks, is a disgrace to GM on, what is supposed to be their top number one profit making truck !
They should fix it yesterday, and offer a retrofit upgrade to those who bought it.
In my opinion.
I know very well as I own a 2015 Sierra 1500 WT. there is no reason that material quality can’t get better with every generation especially since I don’t feel like accepting cheapness for Barra’s EV dreams.
Hey it’s been working well for Ford for years now. Cheapest interior of any new truck, yet the F-150 continues to sell. They don’t care if customers are upset that their dash is all curled up and the glove box door doesn’t latch right because it’s distorted.
Does the sale of capital fit into this earning number, net revenue ?
Drove a 2020 HD yesterday, puts my 2017 to shame, great truck.
I still dislike the looks of the center dash, and the front of the Chevrolet, but we all know looks are subjective.
But it is my opinion.
Did you put your order in?
Yep – 6/20 – Denali HD Duramax, Dark Sky Metallic.
Last I had dealership check, order was picked up, waiting to be built.
And one more time, no one at GM knows anything !
You would think there would be some one, a number, something, to let the customer track their vehicle.
Or just ask a simple question, to someone who knew an answer, to anything.
Got another recall card, on our Cadillac yesterday, GM says , take your vehicle to the dealership, I go to the dealership, the service manager says he has to talk to the warranty administrator to see if he can do the repair, and he will get back to me.
No one knows anything !
You took your car in the same day you received the notice? Most include instructions to contact your dealer to schedule the repairs. Advisers and technicians have to be made aware of the situation and replacement parts or software will take time to be made available.
You will lose this argument fastyle.
First of all I have been warned, by Alex, no caps or any word annunciation, so hear it goes.
To start with, you, should not assume GM is always right, and the customer always wrong !
In this recall number N18216890, the first, get that first, letter was on November – 2018.
Now after receiving that letter back then, I called my local dealer, to ask about it.
Back then, I was told, by a service advisor, over the phone, nothing to worry about, and nothing needed to be done.
So yesterday when I received, one of those little stop sign cards, you know, if you drive a recent GM vehicle with all the recalls. ( GM never has recalls like the other brands, right )
It says, according to our records, as of July 2019, service on your Cadillac, for this recall has not been completed !
You don’t have to explain how service works, I have driven GM for 39 years !
I am in no rush, and do not get irate, like some here think, to get this done, and thought nothing needed to be done, after my last visit with the advisor, on this issue.
So the new service manager, because the advisor no longer works there, sees the recall, on his computer, for our Cadillac, that is not done, but still says he has to check with his warranty administrator before scheduling the work to be done, and will call me back.
So to me, nobody knows anything, GM evidently wants it done, the keep sending me cards wanting it done, still dealer doesn’t know what to do ?
Some of you people on this site have to quit jumping to conclusions that the customer is always wrong.
And if I call GM, which I have not on this issue yet, ( but have many others ) there will be no one on the other end of the phone who knows anything either.
fastyle, now that you have the recall number, and know GM is always right.
Why don’t you handle this for me, I would greatly appreciate it, and would no longer be the bad guy to all the know it alls on this site.
And again, that 2020 HD was awesome to drive and can’t wait to get my Denali.
Here’s your solution.
Sell all your GM vehicles to the first “delusional GM fanboy”➀ you come across.
Cancel your order for the “Denali HD Duramax, Dark Sky Metallic” truck that will no doubt be riddled withproblems, recalls and that crappy interior.➀ and purchase vehicles from another manufacturer that you believe will keep you happy.
Find a forum associated with the vehicles you chose to purchase and be happy.
First off fastyle, and all other opinion writers.
Why do you think I am unhappy ?
If you knew me personally, you would know I am one of the happiest people around, and the people around me would tell you so.
This vehicle ownership thing is a very, very, small part of my life.
However I did start to comment on forums to let others having troubles with GM vehicles and customer service, they are not alone.
I have also said if our government removed the truck tax and VW made a HD truck, I would be driving a VW HD truck and an Audi sedan and SUV.
And I also believe that is what ” is ” happening.
GM is continuing to loose market share correct ? because you people tell others to drive something else.
In my opinion, today, there is no difference in a vehicle brand, all have failures, all have recalls, by switching brands, would not solve anything.
But in my opinion you people who think somehow GM is better, in my opinion , it is not.
And that point right there is the only reason I comment.
To offset the people like you, or scott3.
scott3 has had his GM 8 speed junk transmission replaced in his truck, yet ridicules others who are not as fortunate with their GM junk 8 speed, as if it is their fault.
And I for sure, way, way, way, way, way am not the only person who knows GM has terrible, terrible, terrible customer support.
So one more time, I am happy, doing what I am doing, and in my opinion GM has terrible customer service.
“This vehicle ownership thing is a very, very, small part of my life.”
Sure seams, seams, seams, seams, to be a little, little, little, little, more, more, more, more, then that. Quite frankly I’ve never had the impression that you are generally a happy (happiest around?) person with all gripping you do.
“In my opinion, today, there is no difference in a vehicle brand, all have failures, all have recalls, by switching brands, would not solve anything.”
If GM is no better then any other car maker, their no worse either! So your gripping for nothing?
But you have chosen VW, good for you, after all every so often they give some money back to their customers. Although it is forced upon them by various Feds across the globe.
I’ll cross my fingers for you for the next VW-gate scandal.
Again fastyle, the key words you wrote are , seams, and gripping.
You see, that’s your opinion.
It seams to you that I am gripping.
Maybe we should dig deeper in your mind.
Why does it seem to you I am gripping, complaining, etc.
And the VW scandal, in my opinion, is no different than the GM key switch scandal, or the Toyota, run away scandal, and most of all the government forced recalls, just like the open one on our Cadillac, as we speak.
And my 2017 Denali HD Duramax, had a government forced emissions recall, for the same kind of issue as the VW, as you put it , scandal.
You used the word scandal, but only linked it to a brand other than GM.
And that is why I give my opinion.
“Why does it seem to you I am gripping, complaining, etc.”
The context of the majority (there’s a word you can “key” on) of your posts. VW used sofware to CHEAT, putting more poison into the air you and I breath. So, one more time.
I’ll cross my fingers for you for the next VW-gate CHEAT.
“Why do you think I am unhappy ?”
Maybe because the only posts you make are bellyaching about GM in general? I’ve owned over 50 vehicles since I was 18. A few Pontiacs, I’m on my 3rd Chev, in addition to BMW, Dodge, Chrysler, VW, Toyota, Honda, Mitubishi engined Dodges, Infiniti, one Ford, Mercedes, and on and on. Some have been better than others, the only ones I’d consider to be truly junk were the Mitsubishi powered Dodges, but never spent hours online posting on every subject that comes along on any forum or discussion board with the vitriol and complaining you do on GM Authority. Seriously, if all you do is bellyache, maybe another brand is more your style. I for one, wouldn’t be buying another vehicle of the same brand I spend hours moaning about.
Barra wins, again!
Revenue down …
Operating cash flow down…..
Market share down..
A potential strike on the horizon with the UAW.
Yes, Barra certainly looks like a winner to me
Put the crack pipe down. Get help.
Hoping now they can afford to fix the 8L45 transmission.
Yep, wouldn’t that be great.
scott3 on this site will help you with that issue, he got his replaced and says it works great !
He knows all the things, you the customer, has to go through with your new GM vehicle, to get , your new GM vehicle, fixed, because again, your new GM vehicle, needs fixing.
But you could always loose your a$$ and get a new 10 speed, in my opinion, they shift like a dream.
But, also, in my opinion, you got screwed, by GM, for the 8 speed junk they sold you.
But as long as you, the customer, can pay, for no warranty, GM is ok with selling you a 10 speed.
Unless you switch brands do to the horrible customer service you have received, form GM
They did. The TSB fix and new transmission fluid have been out since January. Either nobody told you or you are too lazy to go have the service done.
The exact, cheat, as you put it, is the reason for the recall on my 17 Duramax !
Also, lets just look at a few life concerning issues.
My GM 17 Denali had the same , cheat, as you said for emissions, which would be in the air we all breath, correct ?
My sons GM Cobalt’s key could have turned off killing him because the power steering quits, the power brakes quit, and the air bags don’t work, correct?
My wife’s GM ATS’, power steering will quit without warning, the recall we are talking about, that you think I am handling wrong, correct ?
So again, for me , first hand concern.
Not the whole population is going to die do to VW, concern, but first hand concern.
Just my son, could have, died, do to GM Cobalt key recall, scandal.
Just my wife, could, die, if her GM steering fails, tomorrow, scandal.
And the whole population, was going to die, the exact emission recall, on my GM Duramax, as VW, scandal.
Tell me fastyle, what is the difference in your mind ?
And so sum up the majority of your context, GM is always right, GM is great, GM is the best at everything !
Not to hard for the average reader to figure that out either.
So keep on buying GM products for you and your family lifelongWhiteKnight. After all, there as good as everything else right?
Have fun with your self induced recalls.
I will thanks !
Again, why do you call it bellyaching ? ( your opinion )
Again, why do you think it is moaning ? ( your opinion )
I think it must be a person of a certain age can’t handle judgment.
Again, I do not consider what I write bellyaching or moaning, its judgement.
In theory, I am compering GM to the competition in todays world.
Not the 50 years ago, or even 30 years ago, today.
So you interpret what I write however you want, happy, sad, mad, moaning, bellyaching, complaining, ETC, whatever, they are all words you and others here have used, not me.