GM Releases 2023 Second-Quarter Results and Raises Full-Year Earnings Guidance
The results include a $792 million charge for new commercial agreements GM has with LG Electronics and LG Energy Solution. The charge reflects the conscious decision GM made during the Chevrolet Bolt EV and Bolt EUV recall to serve customers in ways that go beyond traditional remedies, and GM is taking new steps that will reduce its costs and improve EV margins over time.
GM is also updating its full-year 2023 guidance for the second consecutive quarter:
U.S. GAAP net income attributable to stockholders of$9.3 billion-$10.7 billion , compared to the previous outlook of$8.4 billion-$9.9 billion - EBIT-adjusted of
$12.0 billion-$14.0 billion , compared to the previous outlook of$11.0 billion-$13.0 billion U.S. GAAP net automotive cash provided by operating activities of$18.0 billion-$21.0 billion , compared to the previous outlook of$16.5 billion-$20.5 billion - Adjusted automotive free cash flow of
$7.0 billion-$9.0 billion , compared to the previous outlook of$5.5 billion-$7.5 billion - Capital expenditures of
$11 billion-$12 billion , compared to the previous outlook of$11 billion-$13 billion
See below for reconciliations of non-GAAP measures to their most directly comparable GAAP measures or visit the GM Investor Relations website for complete details.
Downloads
- GM Chair and CEO
Mary Barra's letter to shareholders - Earnings deck
- Detailed quarterly results with year-over-year comparisons
Conference Call for Investors and Analysts
GM Chair and CEO
United States : 1-800-857-9821- International: +1-517-308-9481
- Conference call passcode: General Motors
Results Overview
Six Months Ended | ||||
($M) except where noted | Change | % Change | ||
Revenue | $ 84,732 | $ 71,738 | $ 12,994 | 18.1 % |
Net income attributable to stockholders | $ 4,962 | $ 4,631 | $ 331 | 7.1 % |
EBIT-adjusted | $ 7,037 | $ 6,387 | $ 650 | 10.2 % |
Net income margin | 5.9 % | 6.5 % | (1.0) ppts | (14.5) % |
EBIT-adjusted margin | 8.3 % | 8.9 % | (0.6) ppts | (6.7) % |
Automotive operating cash flow | $ 9,346 | $ 5,104 | $ 4,242 | 83.1 % |
Adjusted automotive free cash flow | $ 5,415 | $ 1,413 | $ 4,002 | 283.2 % |
EPS-diluted(a) | $ 3.52 | $ 2.49 | $ 1.03 | 41.4 % |
EPS-diluted-adjusted(a) | $ 4.12 | $ 3.23 | $ 0.89 | 27.6 % |
GMNA EBIT-adjusted | $ 6,769 | $ 5,440 | $ 1,329 | 24.4 % |
GMNA EBIT-adjusted margin | 9.7 % | 9.3 % | 0.6 ppts | 6.5 % |
GMI EBIT-adjusted | $ 583 | $ 537 | $ 46 | 8.6 % |
$ 161 | $ 147 | $ 14 | 9.5 % | |
GM Financial EBT-adjusted | $ 1,537 | $ 2,390 | $ (853) | (35.7) % |
(a) | EPS-diluted and EPS-diluted-adjusted include a | ||||||||||||||||||||||||
Three Months Ended | ||||
($M) except where noted | Change | % Change | ||
Revenue | $ 44,746 | $ 35,759 | $ 8,987 | 25.1 % |
Net income attributable to stockholders | $ 2,566 | $ 1,692 | $ 874 | 51.7 % |
EBIT-adjusted | $ 3,234 | $ 2,343 | $ 891 | 38.0 % |
Net income margin | 5.7 % | 4.7 % | 1.0 ppts | 21.3 % |
EBIT-adjusted margin | 7.2 % | 6.6 % | 0.6 ppts | 0.9 % |
Automotive operating cash flow | $ 7,114 | $ 3,469 | $ 3,645 | 105.1 % |
Adjusted automotive free cash flow | $ 5,548 | $ 1,407 | $ 4,141 | 294.3 % |
EPS-diluted(a) | $ 1.83 | $ 1.14 | $ 0.69 | 60.5 % |
EPS-diluted-adjusted(a) | $ 1.91 | $ 1.14 | $ 0.77 | 67.5 % |
GMNA EBIT-adjusted | $ 3,194 | $ 2,299 | $ 895 | 38.9 % |
GMNA EBIT-adjusted margin | 8.6 % | 8.0 % | 0.6 ppts | 7.5 % |
GMI EBIT-adjusted | $ 236 | $ 209 | $ 27 | 12.9 % |
$ 78 | $ (87) | $ 165 | n.m. | |
GM Financial EBT-adjusted | $ 766 | $ 1,106 | $ (340) | (30.7) % |
(a) | EPS-diluted and EPS-diluted-adjusted include a | ||||||||
(b) | n.m. = not meaningful | ||||||||
General Motors (NYSE: GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in safety services and connected vehicle technology, can be found at https://www.gm.com.
Cautionary Note on Forward-Looking Statements: This press release and related comments by management may include "forward-looking statements" within the meaning of the
Non-GAAP Reconciliations | ||||
The following table reconciles Net income attributable to stockholders under | ||||
Three Months Ended | Six Months Ended | |||
Net income attributable to stockholders(a) | $ 2,566 | $ 1,692 | $ 4,962 | $ 4,631 |
Income tax expense (benefit) | 522 | 490 | 950 | 462 |
Automotive interest expense | 226 | 234 | 460 | 460 |
Automotive interest income | (251) | (73) | (479) | (123) |
Adjustments | ||||
Voluntary separation program(b) | — | — | 875 | — |
Cruise compensation modifications(c) | — | — | — | 1,057 |
Buick dealer strategy(d) | 246 | — | 345 | — |
Patent royalty matters(e) | — | — | — | (100) |
GM Korea wage litigation(f) | (76) | — | — | |
Total adjustments | 170 | — | 1,144 | 957 |
EBIT-adjusted | $ 3,234 | $ 2,343 | $ 7,037 | $ 6,387 |
(a) | Net of net loss attributable to noncontrolling interests. | |||||||||
(b) | This adjustment was excluded because it relates to the acceleration of attrition as part of the cost reduction program announced in | |||||||||
(c) | This adjustment was excluded because it relates to the one-time modification of Cruise stock incentive awards. | |||||||||
(d) | These adjustments were excluded because they relate to strategic activities to transition certain Buick dealers out of our dealer network as part of Buick's EV strategy. | |||||||||
(e) | These adjustments were excluded because they relate to certain royalties accrued with respect to past-year vehicle sales in the three months ended | |||||||||
(f) | This adjustment was excluded because it relates to the partial resolution of subcontractor matters in | |||||||||
The following table reconciles diluted earnings per common share under | ||||||||
Three Months Ended | Six Months Ended | |||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |
Diluted earnings per common share | $ 1.83 | $ 1,666 | $ 1.14 | $ 3.52 | $ 2.49 | |||
Adjustments(a) | 170 | 0.12 | — | — | 1,144 | 0.82 | 957 | 0.65 |
Tax effect on adjustments(b) | (60) | (0.04) | — | — | (299) | (0.21) | (296) | (0.20) |
Tax adjustments(c) | — | — | — | — | — | — | (482) | (0.33) |
Deemed dividend adjustment(d) | — | — | — | — | — | — | 909 | 0.62 |
EPS-diluted-adjusted | $ 1.91 | $ 1,666 | $ 1.14 | $ 4.12 | $ 4,741 | $ 3.23 | ||
(a) | Refer to the reconciliation of Net income attributable to stockholders under | |||||||||
(b) | The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates. | |||||||||
(c) | This adjustment consists of tax benefit related to the release of a valuation allowance against deferred tax assets considered realizable as a result of Cruise tax reconsolidation in the six months ended | |||||||||
(d) | This adjustment consists of a deemed dividend related to the redemption of Cruise preferred shares from SoftBank in the six months ended | |||||||||
The following table reconciles net automotive cash provided by operating activities under (dollars in millions): |
Three Months Ended | Six Months Ended | |||
Net automotive cash provided by operating activities | $ 7,114 | $ 3,469 | $ 9,346 | $ 5,104 |
Less: Capital expenditures | (2,136) | (2,073) | (4,544) | (3,717) |
Add: Buick dealer strategy | 316 | — | 355 | — |
Add: Employee separation costs | 253 | — | 258 | — |
Add: GM Korea wage litigation | — | 10 | — | 26 |
Adjusted automotive free cash flow | $ 5,548 | $ 1,407 | $ 5,415 | $ 1,413 |
Guidance Reconciliations | ||||||||||||||||||
The following table reconciles expected Net income attributable to stockholders under |
Year Ending | ||||||||||||||||||
Net income attributable to stockholders | $ 9.3-10.7 | |||||||||||||||||
Income tax expense | 1.6-2.2 | |||||||||||||||||
Automotive interest expense, net | 0.0 | |||||||||||||||||
Adjustments(a) | 1.1 | |||||||||||||||||
EBIT-adjusted | $ 12.0-14.0 | |||||||||||||||||
(a) | Refer to the reconciliation of Net income attributable to stockholders under | |||||||||
The following table reconciles expected automotive net cash provided by operating activities under |
Year Ending | |
Net automotive cash provided by operating activities | $ 17.4-20.4 |
Less: Capital expenditures | 11.0-12.0 |
Adjustments | 0.6 |
Adjusted automotive free cash flow(a) | $ 7-9 |
(a) | We do not consider the potential future impact of adjustments on our expected financial results. | |||||||||
View original content:https://www.prnewswire.com/news-releases/gm-releases-2023-second-quarter-results-and-raises-full-year-earnings-guidance-301884645.html
SOURCE General Motors Co.