Final Results
GM Reports Preliminary Fourth Quarter and Calendar Year 2008 Financial Results
Results reflect global economic crisis and industry-wide collapse in vehicle demand
Fourth quarter adjusted net loss of $5.9 billion, reported net loss of $9.6 billion
2008 adjusted net loss of $16.8 billion, reported net loss of $30.9 billion
Structural cost improvement in North America of $3.0 billion in 2008
DETROIT, Feb. 26 --
Calendar Year
2008 2007* '08 O/(U) '07
---- ---- -------------
Revenue (bils.): $149 $180 $(31)
Adjusted automotive earnings
before tax (bils.): $(10.4) $0.6 $(11.0)
Reported automotive earnings
before tax (bils.): $(16.3) $(1.9) $(14.4)
Adjusted net income (bils.): $(16.8) $(0.3) $(16.5)
Reported net income (bils.): $(30.9) $(43.3) $12.4
Reported earnings per share
(diluted): $(53.32) $(76.52) $23.20
Adjusted operating cash flow (bils): $(19.2) $(2.4) $(16.8)
* 2007 figures reflect continuing operations
General Motors Corp. (NYSE: GM) today announced its fourth quarter and calendar year 2008
financial results, which were affected by the dramatic deterioration in global economic
and market conditions during the year, declining consumer confidence and a 50-year low in
per-capita auto sales in the United States.
For the 2008 calendar year, GM reported an adjusted net loss, excluding special items, of
$16.8 billion, or $29.00 per diluted share. This compares to an adjusted net loss of
$279 million, or $0.49 per diluted share in 2007. The 2008 results were driven by the
impact of the U.S. recession and subsequent global contagion. Including special items,
the company reported a loss of $30.9 billion, or $53.32 per diluted share, compared to a
reported loss of $43.3 billion, or $76.52 per diluted share in 2007, which included a
non-cash special charge of $38.3 billion in the third quarter related to the valuation
allowance against deferred tax assets.
"2008 was an extremely difficult year for the U.S. and global auto markets, especially
the second half," Chairman and CEO Rick Wagoner said. "These conditions created a
very challenging environment for GM and other automakers, and led us to take further
aggressive and difficult measures to restructure our business.
"We expect these challenging conditions will continue through 2009, and so we are
accelerating our restructuring actions. At the same time, we are continuing our
commitment to exciting, fuel-efficient cars and trucks, and the leadership in advanced
propulsion technology."
GM total revenue in 2008 was $149 billion, compared with $180 billion in 2007. GM's
core automotive business generated revenue of $148 billion in 2008, down from $178
billion in 2007. The revenue decline was predominantly due to the precipitous drop in
sales amid record low consumer confidence in the U.S. and sharply lower sales across all
of GM's operating regions due to economic turmoil in the global markets. Global
industry sales in 2008 were down 5 percent, or 3.6 million vehicles, versus 2007 levels,
and U.S. industry sales fell by 18 percent, or nearly 3 million units.
Fourth Quarter
2008 2007* '08 O/(U) '07
---- ----- -------------
Revenue (bils.): $30.8 $46.8 $(16.0)
Adjusted automotive earnings
before tax (bils.): $(4.0) $(0.8) $(3.2)
Reported automotive earnings
before tax (bils.): $(6.4) $(1.2) $(5.2)
Adjusted net income (bils.): $(5.9) $0.05 $(5.9)
Reported net income (bils.): $(9.6) $(1.5) $(8.1)
Reported earnings per share
(diluted): $(15.71) $(2.70) $(13.01)
Adjusted operating cash flow
(bils): $(5.2) $(1.3) $(3.9)
* 2007 figures reflect continuing operations
In the fourth quarter 2008, GM posted an adjusted net loss of $5.9 billion or $9.65 per
diluted share, compared to adjusted net income of $46 million, or $0.08 per diluted share
in the year-ago period. Including special items, the company reported a net loss of $9.6
billion, or $15.71 per diluted share in the fourth quarter 2008, compared to a net loss
of $1.5 billion, or $2.70 per diluted share in the year-ago period.
The fourth quarter 2008 results reflect special items totaling $3.7 billion. Special
charges include:
- $1.1 billion impairment charge primarily relating to actions being taken regarding the
Hummer and Saab brands
- $1.0 billion charge relating to adjustments to the value of deferred tax assets in
various countries outside of the U.S.
- $900 million of restructuring and capacity-related costs
- $660 million increase to the Delphi reserve relating to the valuation of future
pension obligations
- $610 million of gross goodwill impairments in Europe and North America
- $533 million net gain relating to GM's portion of the GMAC bond exchange gain, net
of an impairment taken on GM's holdings in GMAC
Details on all special items are included in the "Highlights" section of this news
release.
Effective Oct. 1, 2008, GM discontinued the use of hedge accounting treatment, on a
prospective basis, to comply with SFAS 133. This resulted in a positive net effect on
fourth quarter earnings of $436 million.
In accordance with SFAS 157, GM incorporates its credit risk when measuring the fair
value of its derivative liabilities. As a result of GM's increasing credit risk, the
fair value of its derivative liabilities declined in the fourth quarter, resulting in a
net gain of $1.4 billion.
GM reported revenue of $30.8 billion in the fourth quarter 2008, down from $46.8 billion
in the fourth quarter 2007. Revenue from automotive operations totaled $30.6 billion in
the quarter, compared to $46.5 billion from the prior year, largely driven by the sharp
decline in global industry volume.
GM reports its automotive operations and regional results on a pre-tax basis, with taxes
reported on a total corporate basis.
GM Automotive Operations
GM's global automotive operations posted an adjusted loss before tax of $10.4 billion
in 2008 (reported loss of $16.3 billion), compared to adjusted income before tax of $553
million in 2007 (reported loss of $1.9 billion). In the fourth quarter 2008, GM's
automotive operations had an adjusted loss before tax of $4.0 billion (reported loss of
$6.4 billion), compared to an adjusted loss before tax of $803 million in the year-ago
quarter (reported loss of $1.2 billion).
GM 2008 worldwide sales were 8.35 million vehicles, down 11 percent, or 1.01 million
vehicles, driven by the industry-wide contraction in global vehicle sales. In 2008, 5.38
million vehicles, or 64 percent of GM's global sales, were outside of the U.S., up from
59 percent a year ago. GM's Asia Pacific (GMAP) and Latin America, Africa and Middle East
(GMLAAM) regions each grew sales volume by nearly 3 percent, and more than 2 million
vehicles were sold in Europe for the third consecutive year. Despite softer industry
sales, GM continues to lead in emerging markets, posting market share growth in 14 of 26
of the emerging markets.
GMNA
Fourth Quarter
2008 2007 '08 O/(U) '07
---- ---- ------------
Revenue (bils.) $19.3 $28.1 $(8.8)
Adjusted earnings before tax (bils.) $(2.1) $(1.1) $(1.0)
Reported earnings before tax (bils.) $(3.5) $(1.3) $(2.2)
GM market share 21.0% 22.7% (1.7)p.p.
GM North America (GMNA) posted an adjusted loss before tax of $2.1 billion in the fourth
quarter 2008 (reported loss of $3.5 billion), compared to an adjusted loss before tax of
$1.1 billion in the fourth quarter 2007 (reported loss of $1.3 billion). These results
were impacted by significant declines in U.S. industry volume, leased vehicle residual
adjustments, increased incentives and unfavorable product mix, partially offset by
favorable cost performance, SFAS 157 adjustments and foreign exchange. For 2008, GMNA
posted an adjusted loss before tax of $9.4 billion (reported loss of $14.1 billion),
compared to an adjusted loss before tax of $1.5 billion in the year-ago period, excluding
special items (reported loss of $3.3 billion).
As a result of GM's ongoing restructuring initiatives to adapt to current economic
conditions, significant actions have been taken to reduce its structural cost. In North
America, GM reduced structural cost from $33.8 billion to $30.8 billion, or $3.0 billion,
during 2008.
GME
Fourth Quarter
2008 2007 '08 O/(U) '07
---- ---- -------------
Revenue (bils.) $6.4 $10.7 $(4.3)
Adjusted earnings before tax (mils.) $(956) $(215) $(741)
Reported earnings before tax (mils.) $(1,890) $(445) $(1,445)
GM market share 9.1% 9.2% (0.1)p.p.
For the fourth quarter 2008, GM Europe (GME) posted an adjusted loss before tax of $956
million (reported loss of $1.9 billion) versus an adjusted loss before tax of $215
million in the year-ago period (reported loss of $445 million). The decline in fourth
quarter earnings was largely attributable to the lower industry volume across the region,
unfavorable model mix and unfavorable foreign exchange and commodity hedging, partially
offset by strong cost performance. For 2008, GME posted an adjusted loss before tax of
$1.6 billion (reported loss of $2.8 billion), compared to adjusted income before tax of
$55 million in the year-ago period, excluding special items (reported loss of $524
million).
GMLAAM
Fourth Quarter
2008 2007 '08 O/(U) '07
---- ---- -------------
Revenue (bils.) $4.7 $6.0 $(1.3)
Adjusted earnings before tax (mils.) $(154) $424 $(578)
Reported earnings before tax (mils.) $(181) $424 $(605)
GM market share 16.2% 17.3% (1.1)p.p.
In the fourth quarter, GMLAAM posted an adjusted loss before tax of $154 million (reported
loss of $181 million), down from adjusted income of $424 million in the fourth quarter of
2007 (reported income of $424 million). Fourth quarter results were impacted by lower
industry volume in Brazil, Venezuela and other key markets, and unfavorable foreign
exchange, offset by favorable model mix and pricing. For the year, GMLAAM posted adjusted
earnings before tax of $1.3 billion (reported income of $1.3 billion), which was comparable
to 2007 adjusted earnings of $1.3 billion (reported income of $1.3 billion). Despite a
slowdown in the fourth quarter, GMLAAM achieved record revenue of $20.3 billion and sales
volume of almost 1.3 million vehicles for the calendar year.
GMAP
Fourth Quarter
2008 2007 '08 O/(U) '07
---- ---- -------------
Revenue (bils.) $2.6 $5.3 $(2.7)
Adjusted earnings before tax (mils.) $(879) $72 $(951)
Reported earnings before tax (mils.) $(917) $72 $(989)
GM market share 7.2% 7.3% (0.1) p.p.
GMAP posted an adjusted loss before tax of $879 million for the fourth quarter (reported
loss of $917 million), compared to adjusted income of $72 million in the year-ago period
(reported income of $72 million). GMAP fourth quarter earnings were impacted by lower
industry volume, unfavorable pricing, unfavorable foreign exchange and commodity hedging,
partially offset by favorable model and mix and continued favorable cost performance.
For the year, GMAP posted an adjusted loss before tax of $664 million (reported loss of
$800 million) compared to adjusted income of $744 million (reported income of $681
million) for 2007.
GMAC
In the fourth quarter, GMAC Financial Services (GMAC) reported net income of $7.5
billion, driven largely by the company's December bond exchange, compared to a net loss
of $724 million in the fourth quarter of 2007. Excluding the $11.4 billion gain on its
bond exchange, GMAC's results in the fourth quarter reflected a net loss of $4.0
billion, driven primarily by losses in North America automotive finance and continued
losses at Residential Capital, LLC (ResCap). GMAC reported net income of $1.9 billion in
2008, compared with a net loss of $2.3 billion in 2007.
GM realized an adjusted loss of $4.7 billion attributable to GMAC, as a result of its 49
percent equity interest for the year, and an adjusted loss of $1.9 billion for the fourth
quarter. This excludes a fourth quarter net gain of $533 million related to GM's
portion of GMAC's bond exchange gain that was largely offset by an impairment of GM's
investment in GMAC.
Cash and Liquidity
Cash, marketable securities and readily available assets of the Voluntary Employees
Beneficiary Association (VEBA) trust totaled $14.0 billion as of Dec. 31, 2008, down from
$27.3 billion on Dec. 31, 2007. GM had adjusted automotive operating cash flow of
negative $5.2 billion in the fourth quarter, and ended the 2008 calendar year with
adjusted automotive operating cash flow of negative $19.2 billion, largely due to lower
volume across GM's global operations and negative working capital.
On Dec. 31, 2008, GM entered into a loan agreement with the U.S. Department of Treasury
(UST) for funding of $13.4 billion, payable in three tranches. The initial installment
of $4.0 billion was provided to GM on Dec. 31, 2008, followed by subsequent installments
of $5.4 billion and $4.0 billion on Jan. 21, 2009 and Feb. 17, 2009, respectively.
In accordance with the terms of the loan, GM submitted to the UST on Feb. 17, 2009 a
comprehensive global restructuring plan that demonstrates GM's long-term viability. GM
is working with its key stakeholders as the company implements the actions outlined in
the plan, to create a revitalized, more cost competitive company, dedicated to developing
world-class vehicles and leading advanced propulsion technologies.
As a result of year-end measurements of GM's net pension obligations, it was determined
that the U.S. hourly and salaried qualified pension plans are currently underfunded, on a
combined basis, by approximately $12.4 billion. Several factors contributed to the
underfunded status, including service and interest costs; lower asset returns; lower
discount rates; changes in actuarial assumptions; various hourly initiatives including
the UAW special attrition program, VEBA agreement, Delphi pension transfer and IUE
contract; and salaried initiatives including the pension benefit changes relating to the
elimination of post-65 retiree healthcare and the salaried retirement program. While no
additional pension contributions are anticipated over the next three years, the funded
status of the pension plan is subject to a number of variables. GM will continue to
analyze its pension funding strategies going forward.
GM intends to take advantage of the extension of the time required to file its 2008 10-K,
which the SEC rules allow by filing Form 12b-25. This provides GM with up to 15
additional days in which to file its 2008 10-K, without being considered "late" by
the SEC. The company believes this is a prudent step to take at this critical time as it
allows more time for thorough review of the extensive financial and other disclosures
regarding the events that occurred at year-end 2008 and during early 2009. Additionally,
as a result of the bond exchange, GM's 2008 10-K will contain information regarding
executive compensation, which would not normally be disclosed until the proxy statement
is issued for GM's annual stockholder meeting.
Finally, GM anticipates receiving a "going concern" opinion from its auditors in the
2008 10-K. GM and its auditors must determine whether there is substantial doubt about
GM's ability to continue as a going concern. GM's Viability Plan filed with the UST
on Feb. 17, 2009, included a request for additional funding from the UST, as well as
support from other governments outside of the U.S. GM requires this funding in 2009 to
continue operations until global automotive sales recover and its restructuring actions
generate benefits, resulting in the company being able to fund its own operating
requirements.
About GM
General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in
1908, and today manufactures cars and trucks in 34 countries. With its global
headquarters in Detroit, GM employs 244,500 people in every major region of the world,
and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million
cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest
national market is the U.S., followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety,
security and information services. More information on GM can be found at www.gm.com.
Forward-Looking Statements
In this press release and in related comments by our management, our use of the words
"expect," "anticipate," "ensure," "promote," "target," "believe,"
"improve," "intend," "enable," "continue," "will," "may,"
"would," "could," "should," "project," "projected," "positioned"
or similar expressions is intended to identify forward-looking statements that represent
our current judgment about possible future events. We believe these judgments are
reasonable, but these statements are not guarantees of any events or financial results,
and our actual results may differ materially due to a variety of important factors. Among
other items, such factors might include: our ability to comply with the requirements of
our credit agreement with the U.S. Treasury; the availability of funding for future loans
under that credit agreement; our ability to execute the restructuring plans that we have
disclosed, our ability to maintain adequate liquidity and financing sources and an
appropriate level of debt; and changes in general economic conditions, market acceptance
of our products; shortages of and price volatility for fuel; significant changes in the
competitive environment and the effect of competition on our markets, including on our
pricing policies, financing sources and an appropriate level of debt; and changes in
general economic conditions.
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release, the accompanying tables and the charts for securities
analysts include the following financial measures, which are not prepared
in accordance with Accounting Principles Generally Accepted in the United
States of America (GAAP): (1) adjusted net income; (2) adjusted earnings
before tax; (3) managerial cash flow; and (4) GM North America vehicle
revenue per unit. Each of these financial measures is therefore
considered a non-GAAP financial measure. This press release and the
charts for securities analysts also contain a reconciliation of each non-
GAAP financial measure to its most comparable GAAP financial measure.
Certain prior period amounts have been reclassified in the consolidated
statements of operations and related summaries to conform to the current
period presentation.
Management believes these non-GAAP financial measures provide meaningful
supplemental information regarding GM's operating results because they
exclude amounts that GM management does not consider part of operating
results when assessing and measuring the operational and financial
performance of the organization. In addition, GM has historically
reported similar non-GAAP financial measures and believes that inclusion
of these non-GAAP financial measures provides consistency and
comparability with past earnings releases. GM management believes these
measures allow it to readily view operating trends, perform analytical
comparisons, benchmark performance among geographic regions and assess
whether the GM North American structural cost turnaround plan is on
target. Also, GM management uses adjusted net income and adjusted
earnings before tax for forecasting purposes and in determining future
capital investment allocations. Accordingly, GM believes these non-GAAP
financial measures are useful to investors in allowing for greater
transparency of supplemental information used by management in its
financial and operational decision-making.
While GM believes that these non-GAAP financial measures provide useful
supplemental information, there are limitations associated with the use
of these non-GAAP financial measures. These non-GAAP financial measures
are not prepared in accordance with GAAP, do not reflect a comprehensive
system of accounting and may not be comparable to similarly titled
measures of other companies due to potential differences in the method of
calculation between companies. Costs such as the special attrition
programs and restructuring charges that are excluded from GM's non-GAAP
financial measures can have a material effect on net earnings. As a
result, these non-GAAP financial measures have limitations and should not
be considered in isolation from, or as a substitute for, net earnings,
cash flow from operations, or other measures of performance or liquidity
prepared in accordance with GAAP. GM compensates for these limitations
by using these non-GAAP financial measures as supplements to GAAP
financial measures and by providing the reconciliations of the non-GAAP
financial measures to their most comparable GAAP financial measures.
Investors are encouraged to review the reconciliations of these non-GAAP
financial measures to their most comparable GAAP financial measures that
are included elsewhere in this press release.
Adjusted Net Income and Adjusted Earnings Before Tax
Adjusted net income excludes charges for certain tax related items, gains
and losses on the sale of business units and business interests, charges
associated with accounting changes, restructuring, plant closure and
impairment charges, charges associated with Delphi Corporation (Delphi),
special attrition program charges, and other gains and losses which
management excludes when assessing the internal performance of the
organization.
Adjusted earnings before tax begins with adjusted net income and is
adjusted to remove any remaining tax expense or benefit.
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
Managerial Cash Flow
GM reports non-GAAP managerial automotive operating cash flow in its
earnings releases and charts for securities analysts. Management
believes that providing managerial automotive operating cash flow
furnishes it and investors with useful information by representing the
cash flow generated or consumed by its automotive operations, including
cash consumed by automotive capital expenditures and equity investments
in companies related to GM's core business and cash generated by sales
of automotive operating assets and equity investments in companies
related to GM's core business, before funding non-operating-related
obligations including debt maturities, dividends and other non-operating
items. Management uses this non-GAAP financial measure to assess its
automotive cash flow when evaluating the performance of GM, its business
units and its management teams and when making decisions to allocate
resources among GM's business units.
General Motors Corporation
List of Special Items
2008
(Dollars in millions except per share amounts)
(Unaudited)
Fourth Quarter 2008 Year Ended 2008
------------------- ---------------
Earnings EPS Earnings EPS
REPORTED
--------
Net Loss - Basic and
Diluted * $(9,596) $(15.71) $(30,860) $(53.32)
ADJUSTMENTS
-----------
Pre-Tax Adjustments:
Goodwill impairments (A) $610 $610
Asset impairments (B) 974 974
Charges (income)
related to
investment in GMAC
LLC (C) (533) 2,504
Delphi (D) 660 4,797
Restructuring and
2008 Special
Attrition Programs
(E) 900 6,463
UAW VEBA curtailment
gain (F) - (4,901)
Salaried post-65
healthcare
settlement (G) - 1,704
Canadian Auto
Workers labor
contract (H) - 340
American Axle (I) - 197
Gain on sales of
investments (J) - (98)
- ----
2,611 12,590
----- ------
Tax related:
Valuation allowance
on net deferred tax
assets (K) 1,056 1,450
Equity
Income/Minority
Interest:
Equity investment
impairments (L) 83 83
Minority interest
effects (M) (49) (49)
---- ----
34 34
-- --
Total Adjustments $3,701 $6.06 $14,074 $24.32
====== ===== ======= ======
ADJUSTED
--------
Adjusted Loss -
Basic and Diluted * $(5,895) $(9.65) $(16,786) $(29.00)
=========== =========== ========= ===========
* See average shares outstanding on page 16.
General Motors Corporation
List of Special Items
2008
(Unaudited)
(A) Fourth quarter and year to date charges of $610 million were recorded
for goodwill impairments as follows: $154 million related to GMNA and
$456 million related to GME.
(B) Fourth quarter charges of $974 million were recorded for asset
impairments as follows: GMNA, $412 million; GME, $497 million; LAAM, $27
million; and GMAP, $38 million.
(C ) Fourth quarter income of $5.6 billion representing our proportionate
share of GMAC's bond extinguishment gain recorded related to its debt
tender offer partially offset by impairment charges of $5.1 billion
related to our investment in GMAC Common Membership Interests. Year to
date impairment charges of $8.1 billion related to GM's investment in
GMAC's Common and Preferred Membership Interests partially offset by the
$5.6 billion bond extinguishment gain.
(D) Fourth quarter charges of $660 million and year to date charges of
$4.8 billion were recorded for increased liabilities under the Delphi-GM
Settlement Agreements, primarily due to expectations of increased
obligations and lower estimates of the expected amount of recoveries
associated with the Delphi Benefit Guarantee Agreements.
(E) Relates to various restructuring initiatives and the 2008 Special
Attrition Programs. Charges recorded by region are as follows:
GMNA: Fourth quarter charges of $757 million and year to date
charges of $6.0 billion were recorded in GMNA for additional wage
and benefit costs related to announced capacity actions, plant
idlings in the U.S. and Canada, Salaried Window Program and IUE-CWA
pension related items. Year to date charges of $3.5 billion were
recorded for pre-retirement and retirement pension and benefit
incentives and cash buyouts for employees leaving under the 2008
Special Attrition Programs.
GME: Fourth quarter charges of $33 million and year to date charges
of $264 million were recorded for separation programs, primarily in
Belgium, France, Germany and the United Kingdom.
GMAP: Year to date charges of $98 million were recorded for
separation programs at GM Holden, Ltd.
Corporate and Other: Fourth quarter and year to date charges of $110
million were recorded for additional wage and benefit costs related
to the Salaried Window Program and IUE-CWA pension related items.
(F) Year to date gain of $4.9 billion for the accelerated recognition of
unamortized net prior service credits due to the Settlement Agreement for
the UAW hourly medical plan becoming effective in 2008.
(G) Settlement loss of $1.7 billion associated with the elimination of
healthcare coverage for U.S. salaried retirees over age 65 beginning
January 1, 2009. The settlement loss was recorded for participants over
age 65 at January 1, 2009 and considers the cost of the increased pension
benefit provided to those affected participants to help offset the cost of
Medicare and supplemental coverage.
(H) Year to date loss of $340 million due to a change in the estimate of
the amortization period for pension prior service costs related to the
hourly defined benefit pension plan in Canada. In conjunction with the
2008 Canadian Auto Workers (CAW) labor agreement, it was determined that
the three year contractual life of the labor agreement is a better
reflection of the period of future economic benefit for the collectively
bargained hourly pension plans.
(I) Year to date charge of $197 million due to GM's agreement to provide
upfront support to American Axle to end the work stoppage that affected
approximately 30 GM plants in North America. GM's support partially
funds American Axle's costs associated with UAW employee buyouts, early
retirements and buydowns.
(J) First quarter gain of $50 million on the sale of GM's common equity
interest in Electro-Motive Diesel, Inc. and a third quarter gain of $48
million on the sale of GM's Oklahoma City facility.
(K) Fourth quarter and year to date charges of $1.1 billion and $1.5
billion, respectively, for valuation allowances on GM's net deferred tax
assets. Year to date charge primarily related to GMDAT ($283 million),
Spain ($261 million), Australia ($178 million), and the United Kingdom
($133 million).
(L) Fourth quarter and year to date charges of $83 million primarily
related to impairments on GM's equity investments in New United Motor
Manufacturing, Inc. and CAMI Automotive Inc.
(M) Fourth quarter and year to date gain of $49 million resulting from the
minority interest holder's portion of pre-tax adjustments and valuation
allowances.
General Motors Corporation
List of Special Items
2007
(Dollars in millions except per share amounts)
(Unaudited)
Fourth Quarter 2007 Year Ended 2007
------------------- ---------------
Earnings EPS Earnings EPS
REPORTED
--------
Loss from
continuing
operations $(1,527) $(2.70) $(43,297) $(76.52)
Income from
discontinued
operations - - 256 0.45
Gain on sale of
discontinued
operations 805 1.42 4,309 7.62
--- ---- ----- ----
Net Loss - Basic
and Diluted* $(722) $(1.28) $(38,732) $(68.45)
========== ========== ========== ========
ADJUSTMENTS
-----------
Pre-Tax
Adjustments:
Delphi (A) $1,174 $2,099
Restructuring/Special
attrition program (B) 290 918
Product specific
asset
impairments (C) 169 277
Plant closures
(D) (43) (90)
Pension prior
service cost (E) - 1,561
----- -----
1,590 4,765
----- -----
Tax Related Adjustments:
Valuation allowance on
deferred tax assets and
associated tax
items (F) - 38,300
Income tax effect
of pre-tax
adjustments (17) (47)
---- ----
(17) 38,253
---- ------
Total Continuing Operations
Adjustments 1,573 2.78 43,018 76.03
Gain on sale of
discontinued
operations (G) (805) (1.42) (4,309) (7.62)
----- ------ ------- ------
Total Adjustments $768 $1.36 $38,709 $68.41
==== ===== ======= ======
ADJUSTED
--------
Income from continuing
operations $46 $0.08 $(279) $(0.49)
Income from discontinued
operations - - 256 0.45
---- ---- --- ----
Adjusted Income -
Basic and Diluted* $46 $0.08 $(23) $(0.04)
========= ========== ========= =========
* See average shares outstanding on page 16.
General Motors Corporation
List of Special Items
2007
(Unaudited)
(A) GM, Delphi and the UAW entered into a Memorandum of Understanding
(MOU) in June 2007. GM recorded fourth quarter charges of $1.2 billion
and year to date charges of $2.1 billion to increase GM's estimated
liability under the Delphi Benefit Guarantee Agreements and to establish
liabilities for certain commitments in connection with the Delphi
reorganization plan outlined in the MOU.
(B) Relates to various restructuring initiatives and the 2006 Special
Attrition Program. Charges recorded by region are as follows:
GMNA: Fourth quarter charges of $61 million and year to date
charges of $278 million were recorded for plant closing reserve
adjustments. Additionally, favorable curtailment adjustments of $1
million were recorded during the quarter and reserve adjustments of
$11 million for the year were recorded under the Special Attrition
Program.
GME: Fourth quarter charges of $230 million and year to date
charges of $579 million were recorded for separation programs
primarily in Belgium, Germany and Sweden.
GMAP: Year to date charges of $50 million were recognized relating
to separation programs at Australian facilities.
(C ) Fourth quarter charges of $169 million and year to date charges of
$277 million related to product specific asset impairments are as
follows:
GMNA: Fourth quarter and year to date charges of $169 million and
$264 million recorded.
GMAP: Year to date charges of $13 million recorded.
(D) Relates to curtailment gains and favorable reserve adjustments at
GMNA related to the closure of two former component plants.
(E) Relates to a change in the estimate of the amortization period for
pension prior service cost for certain of our employee benefit plans. In
conjunction with entering into the 2007 UAW/GM labor contract, GM
determined that the four year term of the labor contract better reflects
the period of future economic benefit received from plan amendments to
U.S. hourly pension plans. Concurrently, GM evaluated the remaining
economic benefit related to the unamortized prior service cost remaining
from prior labor contracts and determined the future economic benefit for
those amounts that remained at the end of the third quarter of 2007 did
not extend beyond the third quarter. Accordingly, during the third
quarter 2007, GM recorded a charge of $1.3 billion in GMNA and $0.3
billion in Corporate and Other to expense the remaining portion of
unamortized prior service cost from the plan amendments entered into as
part of the 1999 and 2003 labor contracts.
(F) Relates to a net charge during the third quarter of 2007 for a
valuation allowance on certain deferred tax assets and associated tax
items in the U.S., Canada and Germany. The net charge includes the
valuation allowance of $39 billion, which is offset by an adjustment of
$0.7 billion relating to tax benefits recorded at loss entities through
the third quarter of 2007. Additionally, the allowance includes a $0.5
billion charge associated with a reduction in the value of deferred tax
assets due to a reduction in the statutory corporate income tax and trade
tax rates in Germany.
(G) Relates to the gain on the sale of the commercial and military
operations of our Allison Transmission business, which was completed in
August 2007 and recorded as discontinued operations. The $805 million
net gain during the fourth quarter includes a $830 million re-allocation
of GM's total year-to-date income tax expense between continuing
operations, discontinued operations and other comprehensive income, as
required under U.S. GAAP (SFAS 109). Additionally, $25 million in post-
closing adjustments were determined and recorded during the fourth
quarter.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions except per share amounts)
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
REPORTED
--------
Total net sales and
revenue $30,778 $46,804 $148,979 $179,984
Income (loss) from
continuing operations $(9,596) $(1,527) $(30,860) $(43,297)
Income from discontinued
operations $- $- $- $256
Net income (loss) $(9,596) $(722) $(30,860) $(38,732)
Net margin from
continuing operations * (31.2)% (3.3)% (20.7)% (24.1)%
Earnings (loss) per
share - basic and
diluted
Continuing operations $(15.71) $(2.70) $(53.32) $(76.52)
Income from discontinued
operations - 1.42 - 8.07
- ---- - ----
Net income (loss) $(15.71) $(1.28) $(53.32) $(68.45)
======== ======= ======== ========
ADJUSTED
--------
Total net sales and
revenue $30,778 $46,804 $148,979 $179,984
Income (loss) from
continuing operations $(5,895) $46 $(16,786) $(279)
Income from discontinued
operations $- $- $- $256
Net income (loss) $(5,895) $46 $(16,786) $(23)
Net margin from
continuing operations * (19.2)% 0.1% (11.3)% (0.2)%
Earnings (loss) per
share - basic and
diluted
Income (loss) from
continuing operations $(9.65) $0.08 $(29.00) $(0.49)
Income from discontinued
operations - - - 0.45
- - - ----
Net income (loss) $(9.65) $0.08 $(29.00) $(0.04)
======= ===== ======== =======
See reconciliation of adjusted financial results on pages 17 - 23.
* Calculated as Income (loss) from continuing operations / Total net
sales and revenue.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
GM common stock average
shares outstanding: (Millions)
----------
Reported (GAAP):
Basic shares 611 566 579 566
Diluted shares 611 566 579 566
Adjusted (Non-GAAP):
Basic shares 611 566 579 566
Diluted shares 611 567 579 566
Cash dividends per share
of common stock $- $0.25 $0.50 $1.00
Automotive cash & marketable
securities and
readily-available
assets in VEBA at
December 31: (Billions)
----------
Automotive cash &
marketable securities $14.0 $26.7
Readily-available assets
in VEBA - 0.6
---- ---
Total automotive cash &
marketable securities
and readily-available
assets in VEBA $14.0 $27.3
========= =========
Automotive Operations: (Millions)
----------
Depreciation and
impairment $2,109 $1,212 $5,689 $4,937
Amortization and
impairment of special
tools 1,145 916 3,493 3,243
Amortization and
impairment of
intangible assets 632 23 693 74
--- -- --- --
Total $3,886 $2,151 $9,875 $8,254
====== ====== ====== ======
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Net sales and revenue:
GMNA $19,280 $28,121 $- $- $19,280 $28,121
GME 6,418 10,710 - - 6,418 10,710
GMLAAM 4,707 6,040 - - 4,707 6,040
GMAP 2,608 5,342 - - 2,608 5,342
Auto Elimination (a) (2,401) (3,695) - - (2,401) (3,695)
------- ------- - - ------- -------
Total GMA 30,612 46,518 - - 30,612 46,518
Corporate & Other - - - - - -
- - - - ---- ----
Total Auto & Other 30,612 46,518 - - 30,612 46,518
------ ------ - - ------ ------
GMAC - - - - - -
Other Financing 166 286 - - 166 286
--- --- - - --- ---
Total Financing 166 286 - - 166 286
--- --- - - --- ---
Total $30,778 $46,804 $- $- $30,778 $46,804
======= ======= ==== ==== ======= =======
Income (loss) from
continuing operations
before income taxes,
other equity income
and minority interests:
GMNA $(3,390) $(1,221) $1,323 $192 $(2,067)$(1,029)
GME (1,938) (449) 986 230 (952) (219)
GMLAAM (171) 424 27 - (144) 424
GMAP (921) 13 38 - (883) 13
Auto Elimination (a) 103 (24) - - 103 (24)
--- ---- ---- ---- --- ----
Total GMA (6,317) (1,257) 2,374 422 (3,943) (835)
Corporate & Other (a) (1,086) (1,652) 770 1,168 (316) (484)
------- ------- --- ----- ----- -----
Total Auto & Other (7,403) (2,909) 3,144 1,590 (4,259) (1,319)
------- ------- ----- ----- ------- -------
GMAC (1,406) (394) (533) - (1,939) (394)
Other Financing (a) 18 94 - - 18 94
-- -- ---- ---- -- --
Total Financing (1,388) (300) (533) - (1,921) (300)
------- ----- ----- ---- - ------ -----
Total $(8,791) $(3,209) $2,611 $1,590 $(6,180)$(1,619)
======== ======== ====== ====== ======= ========
See footnotes on page 26.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Equity income (loss),
net of tax:
GMNA (153) $(28) $119 $- $(34) $(28)
GME 9 14 - - 9 14
GMLAAM (1) 8 - - (1) 8
GMAP 20 90 - - 20 90
Auto Elimination - - - - - -
- - - - - -
Total GMA (125) 84 119 - (6) 84
Corporate & Other 1 - - - 1 -
- - - - - -
Total Auto & Other (124) 84 119 - (5) 84
--- -- --- - --- --
GMAC - - - - - -
Other Financing - - - - - -
- - - - - -
Total Financing - - - - - -
- - - - - -
Total (124) $84 $119 $- $(5) $84
=== === ==== ======= ==== ===
Minority interests,
net of tax:
GMNA $20 $(3) $(20) $- $- $(3)
GME 39 (10) (52) - (13) (10)
GMLAAM (9) (8) - - (9) (8)
GMAP (16) (31) - - (16) (31)
Auto Elimination - - - - - -
- - - - - -
Total GMA 34 (52) (72) - (38) (52)
Corporate & Other 1 11 - - 1 11
- -- - - - --
Total Auto & Other 35 (41) (72) - (37) (41)
-- ---- ---- - ---- ----
GMAC - - - - - -
Other Financing 21 (4) (13) - 8 (4)
-- --- ---- - - ---
Total Financing 21 (4) (13) - 8 (4)
-- --- ---- - - ---
Total $56 $(45) $(85) $- $(29) $(45)
=== ----- ===== ======= ===== -----
See footnotes on page 26.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Pre-tax earnings
(loss):*
GMNA $(3,523) $(1,252) $1,422 $192 $(2,101) $(1,060)
GME (1,890) (445) 934 230 (956) (215)
GMLAAM (181) 424 27 - (154) 424
GMAP (917) 72 38 - (879) 72
Auto Elimination
(a) 103 (24) - - 103 (24)
--- ---- - - --- ----
Total GMA (6,408) (1,225) 2,421 422 (3,987) (803)
Corporate & Other
(a) (1,084) (1,641) 770 1,168 (314) (473)
------- ------- --- ----- ----- -----
Total Auto & Other (7,492) (2,866) 3,191 1,590 (4,301) (1,276)
------- ------- ----- ----- ------- -------
GMAC (1,406) (394) (533) - (1,939) (394)
Other Financing
(a) 39 90 (13) - 26 90
-- -- ---- - -- --
Total Financing (1,367) (304) (546) - (1,913) (304)
------- ----- ----- - ------- -----
Total $(8,859) $(3,170) $2,645 $1,590 $(6,214) $(1,580)
======= ------- ====== ====== ======== --------
Income tax
(expense)
benefit:
Corporate & Other $(700) $1,553 $1,037 $(17) $337 $1,536
Other Financing (a) (37) 90 19 - (18) 90
---- -- -- - ---- --
Total $(737) $1,643 $1,056 $(17) $319 $1,626
====== ====== ====== ===== ==== ======
See footnotes on page 26.
* Defined here as Income (loss) from continuing operations before income
taxes and after equity income and minority interests.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Net sales and
revenue:
GMNA $86,187 $112,448 $- $- $86,187 $112,448
GME 34,388 37,478 - - 34,388 37,478
GMLAAM 20,260 18,894 - - 20,260 18,894
GMAP 17,828 20,317 - - 17,828 20,317
Auto Elimination
(a) (10,931) (11,543) - - (10,931) (11,543)
-------- -------- - - -------- --------
Total GMA 147,732 177,594 - - 147,732 177,594
Corporate & Other - - - - - -
- - - - - -
Total Auto & Other 147,732 177,594 - - 147,732 177,594
------- ------- - - ------- -------
GMAC - - - - - -
Other Financing 1,247 2,390 - - 1,247 2,390
----- ----- - - ----- -----
Total Financing 1,247 2,390 - - 1,247 2,390
----- ----- - - ----- -----
Total $148,979 $179,984 $- $- $148,979 $179,984
======== ======== ==== ==== ======== ========
Income (loss)
from continuing
operations
before income
taxes,
other equity
income
and minority
interests:
GMNA $(13,903) $(3,290) $4,535 $1,779 $(9,368) $(1,511)
GME (2,876) (541) 1,217 579 (1,659) 38
GMLAAM 1,306 1,349 27 - 1,333 1,349
GMAP (1,193) 557 136 63 (1,057) 620
Auto Elimination
(a) 34 (59) - - 34 (59)
-- ---- - - -- ----
Total GMA (16,632) (1,984) 5,915 2,421 (10,717) 437
Corporate & Other
(a) (5,745) (3,619) 4,171 2,344 (1,574) (1,275)
------- ------- ----- ----- ------- -------
Total Auto & Other (22,377) (5,603) 10,086 4,765 (12,291) (838)
-------- ------- ------ ----- -------- -----
GMAC (7,161) (1,147) 2,504 - (4,657) (1,147)
Other Financing (a) 150 497 - - 150 497
--- --- - - --- ---
Total Financing (7,011) (650) 2,504 - (4,507) (650)
------- ----- ----- ---- ------- -----
Total $(29,388) $(6,253)$12,590 $4,765 $(16,798) $(1,488)
========= -------- ======= ====== ========= --------
See footnotes on page 26.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Equity income
(loss), net of tax:
GMNA $(201) $22 $119 $- $(82) $22
GME 56 44 - - 56 44
GMLAAM 21 31 - - 21 31
GMAP 308 425 - - 308 425
Auto Elimination - - - - - -
- - - - - -
Total GMA 184 522 119 - 303 522
Corporate & Other 2 2 - - 2 2
- - - - - -
Total Auto & Other 186 524 119 - 305 524
--- --- --- - --- ---
GMAC - - - - - -
Other Financing - - - - - -
- - - - - -
Total Financing - - - - - -
- - - - - -
Total $186 $524 $119 $- $305 $524
==== ==== ==== ======= ==== ====
Minority interests,
net of tax:
GMNA $28 $(46) $(20) $- $8 $(46)
GME 22 (27) (52) - (30) (27)
GMLAAM (32) (32) - - (32) (32)
GMAP 85 (301) - - 85 (301)
Auto Elimination - - - - - -
- - - - - -
Total GMA 103 (406) (72) - 31 (406)
Corporate & Other 1 12 - - 1 12
- -- - - - --
Total Auto & Other 104 (394) (72) - 32 (394)
--- ----- ---- - -- -----
GMAC - - - - - -
Other Financing 4 (12) (13) - (9) (12)
- ---- ---- - --- ----
Total Financing 4 (12) (13) - (9) (12)
- ---- ---- - --- ----
Total $108 $(406) $(85) $- $23 $(406)
==== ------ ===== ======= === ------
See footnotes on page 26.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year to Date
2008 and 2007
Reported Special Items Adjusted
-------- ------------- --------
2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ----
Pre-tax earnings
(loss): *
GMNA $(14,076) $(3,314) $4,634 $1,779 $(9,442) $(1,535)
GME (2,798) (524) 1,165 579 (1,633) 55
GMLAAM 1,295 1,348 27 - 1,322 1,348
GMAP (800) 681 136 63 (664) 744
Auto Elimination
(a) 34 (59) - - 34 (59)
-- ---- - - -- ----
Total GMA (16,345) (1,868) 5,962 2,421 (10,383) 553
Corporate & Other
(a) (5,742) (3,605) 4,171 2,344 (1,571) (1,261)
------- ------- ----- ----- ------- -------
Total Auto & Other (22,087) (5,473) 10,133 4,765 (11,954) (708)
-------- ------- ------ ----- -------- -----
GMAC (7,161) (1,147) 2,504 - (4,657) (1,147)
Other Financing
(a) 154 485 (13) - 141 485
--- --- ---- - --- ---
Total Financing (7,007) (662) 2,491 - (4,516) (662)
------- ----- ----- - ------- -----
Total $(29,094) $(6,135) $12,624 $4,765 $(16,470) $(1,370)
======== -------- ------- ====== ========= -------
Income tax
(expense)
benefit:
Corporate & Other $(2,458)$(37,129) $1,431 $38,130 $(1,027) $1,001
Other Financing
(a) 692 (33) 19 123 711 90
--- ---- -- --- --- --
Total $(1,766)$(37,162) $1,450 $38,253 $(316) $1,091
======= ======== ====== ======= ====== ======
See footnotes on page 26.
* Defined here as Income (loss) from continuing operations before income
taxes and after equity income and minority interests.
23
General Motors Corporation
Summary Corporate Financial Results
(Dollars in billions)
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
Automotive &
Other Adjusted
Operating Cash
Flow:
Total Auto &
Other pre-tax earnings
(loss)* $(7.5) $(2.9) $(22.1) $(5.5)
Depreciation,
amortization
and impairments 3.9 2.2 9.9 8.3
Capital
expenditures (2.0) (2.6) (7.5) (7.5)
Change in
receivables,
payables and
inventory 0.6 0.4 (3.5) (0.5)
OPEB expense
(net of
payments) (1.1) (0.3) (5.9) (1.4)
Pension expense
(net of
payments) 0.8 - 3.8 0.9
VEBA - - - (1.0)
Accrued expenses
and other 0.1 1.9 6.1 4.3
--- --- --- ---
Total Auto &
Other Adjusted
Operating Cash
Flow $(5.2) $(1.3) $(19.2) $(2.4)
=========== =========== =========== ===========
* Defined here as Income (loss) from continuing operations before income
taxes and after equity income and minority interests.
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
GAAP to Auto &
Other Adjusted
Operating Cash
Flow:
Net cash
provided by
operating
activities
(GAAP)** $(2.8) $3.4 $(13.3) $5.4
Capital
expenditures (2.0) (2.6) (7.5) (7.5)
VEBA withdrawals (0.8) (2.7) (1.4) (2.7)
Restructuring
costs 0.2 0.4 1.2 1.4
Delphi
restructuring
costs 0.2 - 1.4 0.3
Other - 0.2 0.4 0.7
- --- --- ---
Total Auto &
Other Adjusted
Operating Cash
Flow $(5.2) $(1.3) $(19.2) $(2.4)
=========== =========== =========== ===========
** Operating cash flow from continuing operations.
General Motors Corporation
Operating Statistics
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
Worldwide Production Volume: (Units in thousands)
--------------------
GMNA - Cars 365 358 1,543 1,526
GMNA - Trucks 450 684 1,906 2,741
--- --- ----- -----
Total GMNA 815 1,042 3,449 4,267
GME 214 457 1,550 1,828
GMLAAM 166 253 961 960
GMAP * 453 627 2,184 2,231
--- --- ----- -----
Total Worldwide ** 1,648 2,380 8,144 9,286
===== ===== ===== =====
Vehicle Unit Deliveries:
Chevrolet - Cars 132 162 715 757
Chevrolet - Trucks 209 355 1,086 1,509
Pontiac 42 81 267 358
GMC 71 125 377 506
Buick 24 42 137 186
Saturn 29 52 188 240
Cadillac 32 60 161 215
Other 9 20 49 96
- -- -- --
Total United States 547 897 2,981 3,867
Canada, Mexico and Other 127 157 583 649
--- --- --- ---
Total GMNA 675 1,054 3,564 4,516
GME 420 529 2,041 2,182
GMLAAM 266 341 1,276 1,236
GMAP * 341 382 1,475 1,436
--- --- ----- -----
Total Worldwide ** 1,703 2,306 8,356 9,370
===== ===== ===== =====
*Under a contractual agreement with SGMW we also report Wuling China
vehicle sales as part of our global market share. Wuling China vehicle
fourth quarter sales included in our global vehicle sales and market share
data was Worldwide Production Volume of 152,000 vehicles and 163,000
vehicles and Vehicle Unit Deliveries of 149,020 vehicles and 132,047
vehicles in 2008 and 2007, respectively. Year to date Wuling China sales
included in our global vehicle sales and market share data was Worldwide
Production Volume of 646,000 vehicles and 555,000 vehicles and Vehicle
Unit Deliveries of 606,000 vehicles and 516,000 vehicles in 2008 and 2007,
respectively. Consistent with industry practice, vehicle sales information
includes estimates of industry sales in certain countries where public
reporting is not legally required or otherwise available on a consistent
basis.
**Totals may include rounding differences.
General Motors Corporation
Operating Statistics
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
Market Share: (Units in thousands)
--------------------
United States - Cars 18.2% 19.0% 18.6% 19.7%
United States - Trucks 24.6% 26.6% 25.6% 26.7%
Total United States 21.6% 23.2% 22.1% 23.5%
Total GMNA 21.0% 22.7% 21.5% 23.1%
Total GME 9.1% 9.2% 9.3% 9.4%
Total GMLAAM 16.2% 17.3% 17.1% 17.0%
Total GMAP * 7.2% 7.3% 7.0% 6.9%
Total Worldwide 12.0% 13.1% 12.4% 13.3%
U.S. Retail/Fleet Mix (selling
day adjusted):
% Fleet Sales - Cars 45.6% 31.2% 34.8% 34.9%
% Fleet Sales - Trucks 23.2% 19.6% 22.4% 20.5%
Total Vehicles 32.2% 23.9% 27.6% 26.1%
GMNA Capacity Utilization *** 72.1% 86.2% 74.7% 88.5%
***Two shift rated, annualized.
General Motors Corporation
Operating Statistics
(Unaudited)
Fourth Quarter Year to Date
-------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
GMAC's share of GM
retail sales
(U.S. only)
Total consumer volume
(retail and lease)
as % of retail 5% 43% 33% 45%
SmartLease/SmartBuy
as % of retail 0% 13% 11% 17%
Worldwide Employment (Thousands)
at December 31:
-----------
United States -
Hourly 62 78
United States -
Salaried 29 32
-- --
Total United States 91 110
Canada, Mexico and
Other 25 29
-- --
GMNA 116 139
GME 55 57
GMLAAM 35 34
GMAP 35 34
Other 2 2
- -
Total GM 243 266
=== ===
(Billions)
----------
Worldwide Payroll $3.8 $4.6 $16.8 $18.0
Footnotes:
(a) Auto Eliminations, Corporate & Other and Other Financing include
inter-company eliminations.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended
December 31,
-------------------------------
2008 2007
---- ----
Net sales and revenue
Automotive sales $30,612 $46,518
Financial services and insurance
revenue 166 286
--- ---
Total net sales and revenue 30,778 46,804
------ ------
Costs and expenses
Automotive cost of sales 33,092 43,805
Selling, general and administrative
expense 3,549 4,207
Financial services and insurance
expense 202 301
Other expenses 1,271 1,174
----- -----
Total costs and expenses 38,114 49,487
------ ------
Operating loss (7,336) (2,683)
Equity in loss of GMAC LLC (Note 9) (1,406) (371)
Automotive and other interest expense (308) (664)
Automotive interest income and other
non-operating income, net 259 509
--- ---
Loss from continuing operations
before income taxes, equity income
and minority interests (8,791) (3,209)
Income tax expense (benefit) 737 (1,643)
Equity income (loss), net of tax (124) 84
Minority interests, net of tax 56 (45)
-- ----
Loss from continuing operations (9,596) (1,527)
Discontinued operations (Note 4)
Income from discontinued operations,
net of tax - -
Gain on sale of discontinued
operations, net of tax - 805
- ---
Income from discontinued operations - 805
- ---
Net loss $(9,596) $(722)
======== ======
Earnings (loss) per share, basic and
diluted
Continuing operations $(15.71) $(2.70)
Discontinued operations - 1.42
- ----
Net loss per share basic and diluted $(15.71) $(1.28)
======== =======
Weighted-average common shares
outstanding, basic and diluted
(millions) 611 566
=== ===
Cash dividends per share $- $0.25
========== =====
28
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
Years Ended December 31,
------------------------
2008 2007 2006
---- ---- ----
Net sales and revenue
Automotive sales $147,732 $177,594 $170,651
Financial services and insurance
revenue 1,247 2,390 33,816
----- ----- ------
Total net sales and revenue 148,979 179,984 204,467
------- ------- -------
Costs and expenses
Automotive cost of sales 149,311 165,573 163,214
Selling, general and administrative
expense 14,253 14,412 13,650
Financial services and insurance
expense 1,292 2,209 29,188
Other expenses 5,407 2,099 4,238
----- ----- -----
Total costs and expenses 170,263 184,293 210,290
------- ------- -------
Operating loss (21,284) (4,309) (5,823)
Equity in loss of GMAC LLC (Note 9) (6,183) (1,245) (5)
Automotive and other interest
expense (2,345) (2,983) (2,642)
Automotive interest income and other
non-operating income, net 424 2,284 2,812
--- ----- -----
Loss from continuing operations
before income taxes, equity income
and minority interests (29,388) (6,253) (5,658)
Income tax expense (benefit) 1,766 37,162 (3,046)
Equity income, net of tax 186 524 513
Minority interests, net of tax 108 (406) (324)
--- ----- -----
Loss from continuing operations (30,860) (43,297) (2,423)
Discontinued operations (Note 4)
Income from discontinued operations,
net of tax - 256 445
Gain on sale of discontinued
operations, net of tax - 4,309 -
- ----- -
Income from discontinued operations - 4,565 445
- ----- ---
Net loss $(30,860) $(38,732) $(1,978)
========= ========= ========
Earnings (loss) per share, basic and
diluted
Continuing operations $(53.32) $(76.52) $(4.29)
Discontinued operations - 8.07 0.79
- ---- ----
Net loss per share basic and diluted $(53.32) $(68.45) $(3.50)
======== ======== =======
Weighted-average common shares
outstanding, basic and diluted
(millions) 579 566 566
=== === ===
Cash dividends per share $0.50 $1.00 $1.00
===== ===== =====
29
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
December 31,
------------
2008 2007
---- ----
ASSETS
Current Assets
Cash and cash equivalents $13,953 $24,549
Marketable securities 13 2,139
-- -----
Total cash and marketable securities 13,966 26,688
Accounts and notes receivable, net 7,711 9,659
Inventories 13,042 14,939
Equipment on operating leases, net 3,363 5,283
Other current assets and deferred income taxes 3,142 3,566
----- -----
Total current assets 41,224 60,135
Financing and Insurance Operations Assets
Cash and cash equivalents 100 268
Investments in securities 128 215
Equipment on operating leases, net 2,221 6,712
Equity in net assets of GMAC LLC 491 7,079
Other assets 1,567 2,715
----- -----
Total Financing and Insurance Operations assets 4,507 16,989
Non-Current Assets
Equity in net assets of nonconsolidated affiliates 1,655 1,919
Property, net 39,656 43,017
Goodwill and intangible assets, net 265 1,066
Deferred income taxes 98 2,116
Prepaid pension 109 20,175
Other assets 3,533 3,466
----- -----
Total non-current assets 45,316 71,759
------ ------
Total assets $91,047 $148,883
======= ========
Current Liabilities
Accounts payable (principally trade) $22,236 $29,439
Short-term borrowings and current portion
of long- 15,754 6,047
Accrued expenses 35,921 34,024
------ ------
Total current liabilities 73,911 69,510
Financing and Insurance Operations Liabilities 23 30
Accounts payable
Debt 1,192 4,908
Other liabilities and deferred income taxes 607 875
--- ---
Total Financing and Insurance Operations
liabilities 1,822 5,813
Non-Current Liabilities
Long-term debt 29,594 33,384
Postretirement benefits other than pensions 28,919 47,375
Pensions 25,178 11,381
Other liabilities and deferred income taxes 16,963 16,900
------ ------
Total non-current liabilities 100,654 109,040
------- -------
Total liabilities 176,387 184,363
Commitments and contingencies (Note 18) 814 1,614
Minority interests
Stockholders' Deficit
Preferred stock, no par value, authorized
6,000,000, no shares issued and outstanding - -
Preference stock, $0.10 par value, authorized
100,000,000 shares, no shares issued
and outstanding - -
$1 2/3 par value common stock
(2,000,000,000 shares authorized, 800,937,541
and 610,483,231 shares issued and outstanding
at December 31, 2008, respectively, and
756,637,541 and 566,059,249 shares issued
and outstanding at December 31, 2007,
respectively) 1,017 943
Capital surplus (principally additional
paid-in capital) 15,755 15,319
Accumulated deficit (70,610) (39,392)
Accumulated other comprehensive loss (32,316) (13,964)
-------- --------
Total stockholders' deficit (86,154) (37,094)
-------- --------
Total liabilities, minority interests, and
stockholders' deficit $91,047 $148,883
========== ==========
CONTACT: Renee Rashid-Merem, +1-313-665-3128, Cell: +1-313-701-8560, renee.rashid-
merem@gm.com, Randy Arickx , +1-313-667-0006, +1-313-268-7070, randy.c.arickx@gm.com,
both of GM
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