General Motors posts record earnings, but global sales fall

GM Reports First-Quarter Net Income of $2.0 Billion
2016-04-21

DETROIT – General Motors Co. (NYSE: GM) today announced first-quarter net income to common stockholders of $2.0 billion or $1.24 per diluted share, compared to $0.9 billion or $0.56 per diluted share a year ago. Earnings per share diluted-adjusted for special items was a first-quarter record at $1.26, up 47 percent compared to the first quarter of 2015.

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.

The earnings increase was driven by improved year-over-year results in all reporting segments, including breakeven performance in Europe.

"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."

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.

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.

GM Results Overview (dollars in billions except for per share amounts)

	Q1 2016	Q1 2015
Net Revenue	$37.3	$35.7
Net income attributable to common stockholders	$2.0	$0.9
Earnings per share (EPS) diluted	$1.24	$0.56
Impact of special items on EPS diluted	$(0.02)	$(0.30)
EPS diluted – adjusted	$1.26	$0.86
EBIT-adjusted	$2.7	$2.1
% EBIT-adjusted margin	7.1	5.8
Automotive net cash flow from operating activities	$(0.7)	$0.0
Adjusted automotive free cash flow	$(1.5)	$(1.7)
% Return on Invested Capital (ROIC)	28.5	19.5

Segment EBIT-Adjusted Results

Cash Flow and Liquidity
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.

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

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GM Sold 2.36 Million Vehicles Globally in First Quarter

Disciplined focus on key markets and segments delivers profitable growth
2016-04-19

DETROIT – General Motors Co. (NYSE: GM) sold 2.36 million vehicles globally in the first quarter of 2016. The company delivered on its sales priorities, led by strong results in the SUV and luxury segments in China and retail performance in the U.S.

"The quality of GM's global sales in the key segments and markets in the first quarter is in line with our efforts to drive sustained profitable growth," said GM President Dan Ammann. "In China, we continued to grow SUV sales and Cadillac expanded in the luxury segment. In the U.S., our disciplined approach to increased retail sales and lower rental fleet resulted in more profitable transactions."

GM's first quarter sales were down 2.5 percent compared to a year ago, mainly due to continued challenging conditions in parts of South America and Asia and the softening of the mini-commercial vehicle market in China.

In China, GM and its joint ventures delivered 964,000 vehicles in the first quarter, an increase of 0.2 percent. GM's total SUV sales in the country were up 148 percent, led by the continued success of the Buick Envision and Baojun 560. Cadillac deliveries in China rose 6.1 percent.

North American sales increased 1.2 percent to 800,000 vehicles. In the U.S., GM continued to grow retail share faster than any other automaker with retail deliveries up 7 percent, or 537,000 vehicles.

In Europe, sales of Opel and its Vauxhall sister brand increased by 8.4 percent to more than 300,000 vehicles in the first quarter, outperforming the industry growth of only 5 percent. Opel has received more than 150,000 orders for the new Astra that was recently awarded European "Car of the Year 2016."

Global sales highlights (vs. first quarter 2015):

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

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