Final Results
GM Reports Preliminary 2007 Financial Results
- 2007 adjusted net loss of $23 million, reported net loss of $38.7
billion
- 2007 adjusted automotive operating pre-tax income improved by almost
$900 million
- Strong emerging market performance helps drive record automotive
revenue of $178 billion
- Adjusted automotive operating cash flow improvement of $2 billion
- Continued improvement in automotive earnings expected for 2008
DETROIT, Feb. 12 -- General Motors Corp. (NYSE: GM) today announced a 2007
calendar-year adjusted net loss, excluding special items, of $23 million, or
$.04 per diluted share. This compares to adjusted net income of $2.2 billion,
or $3.84 per diluted share in 2006, as significantly improved automotive
performance was offset by large losses at GMAC. Including special items, the
company reported a loss of $38.7 billion, or $68.45 per diluted share,
compared to a reported loss of $2 billion, or $3.50 per diluted share in 2006.
The loss is almost entirely attributable to the non-cash $38.3 billion special
charge in the third quarter related to the valuation allowance against
deferred tax assets.
GM's core automotive business generated record revenue of $178 billion in
2007, a $7 billion improvement over 2006, aided by explosive growth in
emerging markets and favorable foreign exchange against a weaker U.S. dollar.
In total, GM generated $181 billion in revenue in 2007, compared with $206
billion in 2006. The decrease versus last year is due to the non-
consolidation of GMAC revenue, following GM's sale of 51 percent of GMAC in
November of 2006.
"2007 was another year of important progress for GM, as we implemented
further significant structural cost reductions in North America, grew
aggressively in emerging markets, negotiated an historic labor contract with
our UAW partners in the U.S., advanced development of a broad range of
advanced propulsion technologies and most importantly, introduced a series of
breakthrough cars and trucks around the world," GM Chairman and CEO Rick
Wagoner said. "We're pleased with the positive improvement trend in our
automotive results, especially given the challenging conditions in important
markets like the U.S. and Germany, but we have more work to do to achieve
acceptable profitability and positive cash flow," Wagoner added.
In the fourth quarter 2007, GM posted adjusted net income of $46 million
or $.08 per diluted share, compared to adjusted net income of $180 million, or
$.32 per diluted share in the year-ago period. Including special items, the
company reported a net loss of $722 million, or $1.28 per diluted share in the
fourth quarter 2007, compared to net income of $950 million, or $1.68 per
diluted share in the year-ago period. The fourth quarter results reflect a
$1.6 billion tax benefit in continuing operations related to SFAS No. 109
guidelines for intra-period tax allocations between continuing operations,
other comprehensive income and discontinued operations.
Special charges recorded in the fourth quarter totaled $768 million,
including an $805 million adjustment principally related to a favorable tax
item related to the gain on the sale of Allison Transmission, which was offset
by $622 million in charges associated with GM's support of Delphi's
restructuring efforts, $552 million for pension benefits provided to Delphi
employees and retirees and $290 million in other restructuring-related
charges. Details on special items are included in the "Highlights" section of
the press release.
GM reported revenue of $47.1 billion in the fourth quarter versus $50.8
billion in the year ago period, with the decline more than accounted for by
the exclusion of GMAC revenue starting December 1, 2006. Revenue from
automotive operations totaled $46.7 billion in the quarter, a $3 billion
increase over the prior year and a new quarterly revenue record, reflecting
strong growth in Latin America, Asia Pacific and Eastern Europe.
Beginning in the fourth quarter of 2007 and reflected in the remainder of
this release, GM will report 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 adjusted earnings before tax of
$553 million in 2007 (reported loss of $1.9 billion), compared to an adjusted
loss before tax of $339 million in 2006 (reported loss of $6.1 billion). In
the fourth quarter 2007, GM's automotive operations had an adjusted loss
before tax of $803 million (reported loss of $1.2 billion), compared to
adjusted earnings before tax of $8 million in the year-ago quarter (reported
loss of $111 million).
GM's worldwide vehicle sales increased 3 percent, or 277,000 units, to 9.4
million vehicles in 2007, marking the second best year in units sold in the
company's 100-year history. For the third consecutive year, a majority of the
company's sales - almost 60 percent - were outside of the U.S. Record sales
performance was achieved in key growth markets throughout Eastern Europe,
Latin America and the Asia Pacific.
GM North America (GMNA) posted an adjusted loss before tax of $1.5 billion
for 2007 (reported loss of $3.3 billion), compared to a loss before tax of
$1.6 billion in the year-ago period, excluding special items (reported loss of
$7.5 billion). GMNA had an adjusted loss before tax of $1.1 billion in the
fourth quarter (reported loss of $1.3 billion), compared to an adjusted loss
before tax of $129 million in the fourth quarter 2006 (reported loss of $30
million).
Losses for the year in GMNA were largely attributable to a softer U.S.
market, and the strategic actions to reduce dealer inventory by approximately
150,000 units and lower sales of daily rental vehicles by about 110,000
vehicles in the U.S. High commodity prices, unfavorable foreign exchange and
lower unit sales exerted pressure on profitability, but were more than offset
by better product mix, stronger pricing, and significantly reduced
manufacturing and legacy costs. GMNA also incurred higher engineering costs
to support continuing product and technology development activities.
"Our North America turnaround remains on track despite the weak U.S.
economy and continued high commodity prices," Wagoner said. "The actions
we've taken to further reduce structural costs and strengthen our product
lineup with great new vehicles like the award-winning Chevrolet Malibu and
Cadillac CTS are fundamentally improving our ability to compete in the U.S.
and around the world. We're building a solid foundation for continued growth
and improved operating results," Wagoner added.
GM reached its structural cost reduction target of $9 billion in North
America in 2007 versus 2005, a key part of reducing global automotive
structural cost as a percent of revenue from 34 percent in 2005 to 29.7
percent in 2007. GM expects to derive additional structural cost savings of
$4 billion to $5 billion by 2010 in the U.S. as it fully implements the 2007
GM-UAW contract, including the independent healthcare trust. These savings
will help GM reach its goal to reduce structural cost as a percent of revenue
to 25 percent of revenue by 2010, and further to 23 percent of revenue by
2012.
GM Europe (GME) posted its second consecutive year of adjusted
profitability in 2007 with earnings before tax of $55 million (reported loss
of $524 million), down from earnings before tax of $357 million in 2006,
excluding special items (reported loss of $297 million). For the fourth
quarter GME posted an adjusted loss before tax of $215 million (reported loss
of $445 million) versus an adjusted loss before tax of $12 million in the year
ago period (reported loss of $154 million). The decline in calendar year and
fourth quarter earnings were attributable primarily to a markedly softer
German market as well as unfavorable foreign exchange rates. Other key areas
of GME's business performed relatively well, including strong sales outside
Germany, increases in net pricing, and improvements in structural and material
cost performance.
GME sales were up 8.9 percent in 2007 to a record 2.2 million units, led
by Chevrolet, up 34 percent, Opel/Vauxhall, up 4.3 percent and Cadillac up 31
percent. Strong demand for GM vehicles in the United Kingdom, Ukraine, Italy,
Greece and Russia - where sales doubled to 260,000 units - made the company
the fastest growing major automobile manufacturer in Europe in 2007.
Financial results generated from the rapidly growing sales of GM Daewoo-built
Chevrolet vehicles in Europe are consolidated in Korea and reflected in GM
Asia Pacific (GMAP) results.
With a 19 percent increase in sales to a record 1.2 million units in 2007,
GM Latin America, Africa, Middle East (GMLAAM) achieved a record $1.3 billion
in adjusted earnings before tax for the year (reported income of $1.3
billion), up 140 percent over 2006 adjusted earnings of $561 million (reported
income of $518 million). GMLAAM also set a sales record in the fourth quarter
with 341,000 units, up 18 percent year over year, generating $424 million in
adjusted earnings before tax (reported income of $424 million), up from $76
million in the fourth quarter of 2006 (reported income of $76 million).
Robust sales in the GMLAAM region resulted in record revenue of $18.9 billion
for the calendar year and $6 billion in the fourth quarter.
The year-over-year gain in GMLAAM pre-tax earnings was largely driven by
strong volume growth, which outpaced industry growth, as well as favorable
price and mix. Robust sales contributed to record GM sales in Argentina,
Brazil, Chile, Colombia, Egypt and Venezuela in 2007. Continued strong sales
of the Chevrolet Corsa, Aveo and Celta throughout the region were complemented
by the successful launch of several new entries, including the Chevrolet
Captiva in Latin America and Chevrolet Suburban and Cadillac Escalade in the
Middle East. Chevrolet sales in the region were up 23 percent for the
calendar year, and accounted for 90 percent of units sold in GMLAAM in 2007.
GMAP posted adjusted earnings before tax of $744 million in 2007 (reported
income of $681 million) compared to $403 million (reported income of $1.2
billion) for 2006. GMAP adjusted earnings before tax for the fourth quarter
were $72 million (reported income also $72 million), compared to $105 million
in fourth quarter of 2006 (reported income of $29 million). The calendar year
earnings gain was driven by favorable volume and mix, increased equity income
from GM's China joint ventures and improved operating performance at Holden.
The results were partially offset by increased structural cost increases
associated with continued investment in high growth markets and lower Suzuki
equity income resulting from the sale of a majority of GM's equity in 2006.
GMAP had continued strong performance in China, where domestic sales grew
18.5 percent in 2007 and GM, with its local partners, became the first global
automotive manufacturer to sell more than 1 million vehicles. In addition, GM
sales in India rose 74 percent, and export sales of the GM Daewoo products
built in Korea increased by 30 percent to 870,000 vehicles.
GMAC
On a standalone basis, GMAC Financial Services reported a net loss of $2.3
billion in 2007, compared with net income of $2.1 billion in 2006. Profitable
results in the global automotive and insurance businesses were more than
offset by the significant loss at Residential Capital, LLC (ResCap). In the
fourth quarter, GMAC reported a net loss of $724 million, compared to net
income of $1.0 billion in the fourth quarter of 2006. The effect on ResCap of
the continued disruption in the mortgage, housing and capital markets was the
primary driver of adverse performance.
GM reported a $1.1 billion net loss attributable to GMAC, as a result of
its 49 percent equity interest and preferred dividends received for the full
year 2007, and a $394 million reported net loss for the fourth quarter.
While market conditions remain uncertain, GMAC has taken aggressive
actions in 2007 across all its businesses in an effort to mitigate future
risk, rationalize the cost structure and position the company for growth. As
a result, GMAC currently expects to be profitable in 2008. GMAC's liquidity
position is at relatively high historical levels and GM believes that GMAC
remains adequately capitalized.
Cash and Liquidity
Cash, marketable securities and readily available assets of the Voluntary
Employees Beneficiary Association (VEBA) trust totaled $27.3 billion as of
December 31, 2007, up from $26.4 billion as of December 31, 2006. GM ended
the 2007 calendar year with negative adjusted automotive operating cash flow
of $2.4 billion, a significant $2 billion improvement compared to 2006. It
marks the second consecutive year-over-year improvement in operating cash flow
for all four of GM's operating regions.
Consistent with past years, GM withdrew $2.7 billion from the VEBA in
December, leaving a balance of $16.3 billion at 2007 year-end, of which the
UAW related portion is estimated at $14.5 billion. In negotiations with the
UAW and UAW retiree class counsel on a Settlement Agreement involving the
healthcare MOU that will shortly be filed with the court, the parties have
agreed in principle that of the $18.5 billion that was agreed to be set aside
upfront for future retiree healthcare claims, the difference of approximately
$4 billion will be funded with a short term note maturing January 2010 with
interest at 9 percent. This will enhance interim liquidity for GM and provide
the UAW and plan participants a 9 percent return.
The parties have also agreed in principle, as part of the overall
Settlement Agreement, to execute a series of derivatives that would
effectively reduce the conversion price of the convertible note from $40 to
$36, and would entitle GM to recover the additional economic value provided if
the GM stock price appreciates to between $63.48 and $70.53 per share.
Future Outlook
Despite the uncertainty in the U.S. market, the company announced it
expects improved pre-tax automotive earnings in 2008 versus 2007, largely
driven by continued strong performance in emerging markets. GM expects
improvements in automotive revenue, favorable pricing, favorable material cost
performance and continued reductions in structural cost as a percentage of
revenue in the 2008 calendar year. Operating cash flow is expected to be
relatively flat in 2008 versus 2007, despite planned increases in capital
spending to about $8 billion, up from $7.5 billion in 2007.
GM remains confident in the 2010-2011 opportunities to further improve
earnings and cash flow. Most notable is the potential to realize the full
impact of the GM-UAW labor agreement which is expected to provide
significantly greater flexibility and yield additional savings of $4 billion
to $5 billion. In addition, GM estimates that if the U.S. market volume
returns to trend levels in 2009 and beyond, which would be an increase of 1
million units, the change would generate additional pre-tax income to GM in
the range of approximately $1 billion to $1.5 billion annually. GM also
expects to reduce a substantial portion of the cost premiums it has
historically paid to Delphi for systems and components over the next three to
five years. The savings will be offset by various labor and transitional
subsidies of $300-400 million per year under Delphi's plan of reorganization,
however GM expects to achieve annual net savings over the mid-term of
approximately $500 million.
In addition, significant additional opportunities to further improve GM
earnings and cash flow by 2010-2011 include improved pricing driven by a host
of new products, continued strong growth in revenue and profitability in
emerging markets, and improved performance at GMAC.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been
the annual global industry sales leader for 77 years. Founded in 1908, GM
today employs about 266,000 people around the world. With global headquarters
in Detroit, GM manufactures its cars and trucks in 35 countries. In 2007,
nearly 9.37 million GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. 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," "estimate," "goal," "target," "believe,"
"improve," "intend," "potential," "continue," "designed," "opportunity,"
"risk," "may," "would," "could," "should" or the negative of any of those
words 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. Such factors include,
among others, the following: our ability to realize production efficiencies,
to achieve reductions in costs as a result of the turnaround restructuring and
health care cost reductions and to implement capital expenditures at levels
and times planned by management; market acceptance of our products;
significant changes in the competitive environment and the effect of
competition in our markets, including on our pricing policies; our ability to
maintain adequate liquidity and financing sources and an appropriate level of
debt; shortages of and price increases for fuel; adoption of new laws or
changes in existing laws that may affect the production, licensing,
distribution, cost or sale of our products; the final results of
investigations and inquiries by the SEC and other governmental agencies;
changes in GMAC's ability to make distributions on the Preferred Membership
Interests we hold; completion of the final settlement with the UAW and UAW
retirees, including obtaining court approval in a form acceptable to us, the
UAW, and class counsel; treatment of the terms of the 2006 Settlement
Agreement pursuant to the Retiree MOU in a form acceptable to us, the UAW and
class counsel; our completion of discussions with the staff of the SEC
regarding accounting treatment with respect to the New VEBA and the Post-
Retirement Medical Benefits for the Covered Group as set forth in the Retiree
MOU, on a basis reasonably satisfactory to us; and as applicable, a
determination by us that the New VEBA satisfies the requirements of section
302(c)(5) of the Labor-Management Relations Act of 1947, as amended (LMRA), as
well as bank and other regulatory approval; and changes in economic
conditions, commodity prices, currency exchange rates or political stability
in the markets in which we operate. In addition, GMAC's actual results may
differ materially due to numerous important factors that are described in
GMAC's most recent report on SEC Form 10-K, which may be revised or
supplemented in subsequent reports on SEC Forms 10-K, 10-Q, and 8-K. The
factors identified by GMAC include, among others, the following: possible
downgrades for GMAC or ResCap by rating agencies; inability to maintain
adequate financing sources for its substantial capital needs; credit exposure
to us and recent developments in the residential mortgage market, especially
in the nonprime sector. The most recent reports on SEC Forms 10-K, 10-Q or 8-
K filed by us or GMAC provide information about these and other factors, which
may be revised or supplemented in future reports to the SEC on those forms.
General Motors Corporation
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include the following
non-GAAP financial measures: (a) adjusted net income, (b) managerial cash
flow and (c) GM North America vehicle revenue per unit. Each of these
financial measures excludes the impact of certain items and therefore has
not been calculated in accordance with U.S. generally accepted accounting
principles (GAAP). This press release also contains a reconciliation of
each presented non-GAAP measure to its most comparable GAAP financial
measure.
Management believes these non-GAAP financial measures provide meaningful
supplemental information regarding our operating results because they
exclude amounts that GM management does not consider part of operating
results when assessing the performance of the organization and measuring
the results of GM's performance. 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 uses these non-
GAAP financial measures to evaluate GM's performance and believes these
measures allow GM management 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 for
forecasting purposes and in determining our 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
program and restructuring charges that are excluded from GM's non-GAAP
financial measures can have a material impact 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 reviewing 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
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 certain changes in estimates, restructuring,
plant closure and impairment charges, charges associated with Delphi and
special attrition program charges.
The following is a discussion of each adjustment to net income (loss)
determined in accordance with GAAP to arrive at adjusted net income:
- Deferred tax assets and tax-related items. GM established valuation
allowances against its deferred tax assets in the U.S., Canada and
Germany. The charge associated with establishing these valuation
allowances is excluded from adjusted net income. Other tax related
items excluded from adjusted net income are: (1) the impact of the
reduction in corporate income and trade tax rates in Germany; (2) the
reversal of our deferred tax asset valuation allowance at GM Daewoo;
and (3) unusual tax events that may result as GM is involved in the
sales of its business units and business interests from time-to-time.
Management believes the exclusion of these valuation allowance charges
and tax related items from adjusted net income is useful because
management does not consider these charges part of GM's core earnings
in evaluating the performance of the business and excludes these costs
when evaluating the performance of the Corporation, its business units
and its management team and when making decisions to allocate
resources among GM's business units.
General Motors Corporation
Use of Non-GAAP Financial Measures (Continued)
- Gains and losses on the sale of business units and business interests.
The gains and losses on the sale of business units and business
interests are excluded from adjusted net income. While GM is involved
in sales of its business units and business interests from time-to-
time and may have significant gains or losses from such sales in the
future, such events have historically occurred sporadically.
Management excludes the gains and losses associated with these events
when it evaluates the Corporation's operations and for internal
reporting and forecasting purposes and for allocation of additional
resources.
- Change in estimate regarding period of economic benefit of existing
pension prior service cost. Our non-GAAP financial measures exclude
the charge associated with this change in accounting estimate.
Management believes the exclusion of this change in estimate from
adjusted net income is useful because management does not consider
these non-recurring charges part of GM's core earnings. Accordingly,
management excludes such costs when evaluating the performance of the
Corporation, its business units and its management teams and when
making decisions to allocate resources among GM's business units.
- Restructuring, impairment, idling and plant closure charges. Our
non-GAAP financial measures exclude exit costs and related charges,
primarily consisting of severance costs, lease abandonment costs,
product impairments, any subsequent changes in estimates related to
exit activities and goodwill impairment and other intangible asset
impairment charges. Management believes the exclusion of restructuring
and impairment charges from adjusted net income is useful because
management does not consider these costs part of GM's core earnings in
evaluating GM's operational managers and the exclusion permits
investors to evaluate the performance of our management the same way
management does. Additionally, management excludes restructuring and
impairment charges in determining the allocation of resources, such as
capital investments, among the Corporation's business units and as
part of its forecasting and budgeting.
- Delphi charges. Our non-GAAP financial measures exclude the estimated
charges associated with the comprehensive settlement agreements
entered into with Delphi in connection with the restructuring of
Delphi's operations and certain pension related charges for lump-sum
payments to Delphi retirees. Management does not consider these costs
as part of its core earnings for purposes of evaluating the
performance of the business, and excludes such costs when evaluating
the performance of the Corporation, its business units and its
management teams and when making decisions to allocate resources among
GM's business units.
- Special attrition program charges. Our non-GAAP financial measures
exclude the estimated charges associated with the special attrition
program agreement among the UAW, GM and Delphi. Management believes it
is useful in evaluating the performance of GM, its management teams
and its business units during a particular time period to exclude
charges associated with the special attrition program. Accordingly,
management does not consider these costs as part of its core earnings,
and excludes such costs when evaluating the performance of the
Corporation, its business units and its management teams and when
making decisions to allocate resources among GM's business units.
Managerial Cash Flow
GM also 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 our 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
Use of Non-GAAP Financial Measures (Concluded)
GM North America Vehicle Revenue per Unit
GM's earnings releases and charts for securities analysts also include
the use of a non-GAAP measure of revenue per vehicle. Management uses
revenue per vehicle to track operating efficiency and to facilitate
comparisons between periods and between manufacturers, and believes that
it would provide valuable information to investors who are interested in
identifying trends and comparing different companies. Revenue per vehicle
includes certain vehicle sales to other GM regions that are excluded from
GAAP reporting, and excludes non-vehicle sales such as service parts and
operations and OnStar service, and other income that GM does not derive
from the sale of vehicles, such as fees on the GM credit card. Management
also includes sales to daily car rental companies in revenue per vehicle,
although they are not treated as sales under GAAP reporting because of
GM's repurchase obligations.
General Motors Corporation
List of Special Items
(Dollars in millions except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, 2007 December 31, 2007
------------------ -----------------
Earnings EPS Earnings EPS
REPORTED
Loss from continuing operations $(1,527) $(2.70) $(43,297) $(76.52)
Income from discontinued
operations -- -- 256 .45
Gain on sale of discontinued
operations 805 1.42 4,309 7.62
------- ------- -------- -------
Net Loss $(722) $(1.28) $(38,732) $(68.45)
======= ======= ======== =======
ADJUSTMENTS
Pre-Tax Adjustments:
Delphi (A) $622 $1,547
Pension benefits for Delphi
retirees (B) 552 552
Restructuring/Special
attrition program (C) 290 918
Product impairments (D) 169 277
Pension prior service cost (E) -- 1,561
Plant closures (F) (43) (90)
------- --------
1,590 4,765
------- --------
Tax related:
Valuation allowance on
deferred tax assets and
associated tax items (G) -- 38,300
Income tax impact of pre-tax
adjustments (17) (47)
------- --------
(17) 38,253
------- --------
Total Continuing Operations 1,573 $2.78 43,018 $76.03
------- ------- -------- -------
Gain on sale of discontinued
operations (H) (805) (1.42) (4,309) (7.62)
------- ------- -------- -------
Total Adjustments $768 $1.36 $38,709 $68.41
======= ======= ======== =======
ADJUSTED
Income (loss) from continuing
operations $46 $.08 $ (279) $(.49)
Income from discontinued
operations -- -- 256 .45
------- ------- -------- -------
Adjusted Income - Basic * $46 $.08 $ (23) $(.04)
======= ======= ======== =======
Adjusted Income - Diluted * $.08 $(.04)
======= =======
General Motors Corporation
List of Special Items
(Unaudited)
(A) During the fourth quarter, we recorded charges of $622 million in
Corporate and Other as a result of amendments to the GM-Delphi
Settlement Agreements, support of Delphi's sales of businesses,
updated estimates of Delphi retiree healthcare costs and possible
support based on ongoing discussions with Delphi.
Including the fourth quarter charges, year-to-date charges for Delphi
total $1.5 billion, of which $575 million was recorded during the
second quarter and $350 million was recorded during the third
quarter.
(B) During the fourth quarter, we recorded charges of $552 million
related to pension benefit increases granted to Delphi employees and
retirees/surviving spouses as part of the 2007 UAW/GM labor contract.
(C) Relates to various restructuring initiatives or the Special Attrition
Program. Charges recorded by regions are as follows:
GMNA: Charges of $61 million during the quarter and $278 million for
the year were recognized relating to adjustments to plant closing
reserves. 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: Charges during the quarter and for the year of $230
million and $579 million, respectively, were recognized 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.
(D) Amounts relate to charges for product specific asset impairments.
GMNA recorded a $169 million charge during the fourth quarter and
$264 million in cumulative charges for the year. GMAP recorded $13
million for the year.
(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 $.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 curtailment gains and favorable reserve adjustments at
GMNA related to the closure of two former component plants.
(G) 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 $.7 billion relating to tax benefits recorded at loss entities
through the third quarter of 2007. Additionally, the allowance
includes a $.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.
(H) 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
List of Special Items
(Dollars in millions except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, 2006 December 31, 2006
------------------ -----------------
Earnings EPS* Earnings EPS*
REPORTED
REPORTED
Income (loss) from continuing
operations $855 $1.51 $(2,423) $(4.29)
Income from discontinued
operations 95 .17 445 .79
------- -------- -------- -------
Net Income (loss) $950 $1.68 $(1,978) $(3.50)
======= ======= ======== =======
ADJUSTMENTS
Pre-tax adjustments:
Component plant settlement (A) $224 $224
Restructuring (B) 218 (130)
Special attrition program (C) (53) 6,387
Gain on sale (D) (270) (270)
GMAC transaction related (E) (1,097) (1,056)
GMAC commercial finance
goodwill impairment (F) -- 839
Delphi (G) -- 500
Product impairments (H) -- 475
Sale of investments (I) -- (977)
------- --------
(978) 5,992
------- --------
Tax related:
Tax related adjustment
items (J) (158) (306)
GMAC transaction related (E) 172 355
Income tax impact on pre-tax
adjustments 194 (1,887)
------- --------
208 (1,838)
------- --------
Total Adjustments - Continuing
Operations $(770) $(1.36) $4,154 $7.35
======= ======= ======== =======
ADJUSTED
Income from continuing
operations $85 $.15 $1,731 $3.06
Income from discontinued
operations 95 .17 445 .79
------- ------- -------- -------
Adjusted Income - Basic $180 $0.32 $2,176 $3.85
======== ======= ======== =======
Adjusted Income - Diluted $0.32 $3.84
======= =======
* Adjusted EPS - Basic for the year ended December 31, 2006 has been
changed from $3.89 per share to $3.85 per share to reflect a revision to
the special item related to the gain on sale of our Suzuki investment
from $372 million, after-tax, to $395 million, after-tax. Additionally,
see average shares outstanding, Basic and Diluted.
General Motors Corporation
List of Special Items, Pre-Tax
(Unaudited)
(A) During the fourth quarter, GM announced its plan to cease production
at two former component plants that are included in GM's consolidated
financial results. GMNA recorded a charge of $224 million related to
the idling and separation costs of the workforce.
(B) Relates to various restructuring initiatives and other matters.
Charges
for the fourth quarter of 2006 include:
- Additional charges of $142 million primarily related to separations
at GME.
- Restructuring charges of $76 million at GMAP related to reduced
volume and employee separation at Holden.
In addition to the fourth quarter charges, year-to-date amounts,
reflecting a net favorable adjustment, include the following:
- GMNA recorded a favorable adjustment of approximately $1 billion to
the accrual recorded in the fourth quarter of 2005 for the North
American plant capacity actions.
- Charges totaling $512 million were recognized at GME relating to (1)
the announced closure in December 2006 of the GM assembly plant in
Azambuja, Portugal, which includes amounts for the writedown to fair
market value of plant assets, employee separation costs, and
contract cancellation charges; and (2) costs related to the
elimination of a shift at the Ellesmere Port plant in the U.K.
- Estimated charges of $115 million related to separations of salaried
employees at GMNA.
- Other restructuring charges of $43 million and $5 million at GMLAAM
and Corporate and Other, respectively.
(C) During the fourth quarter, GMNA recorded a $53 million favorable
adjustment primarily due to closed plants and the related JOBS bank.
In addition to the fourth quarter charge, year-to-date charges
totaling $6.4 billion at GMNA included the following:
- Favorable adjustments of $161 million during the third quarter to
adjust other personnel related accruals as a result of the GMNA
hourly attrition plan.
- Charges related to the results of the GM-UAW-Delphi Special
Attrition Program primarily for payments to employees of
approximately $2.1 billion.
- Curtailment charges of approximately $4.4 billion associated with
GM's U.S. hourly pension plan as a result of the attrition program.
(D) During the fourth quarter, GM sold its desert proving grounds in
Mesa, Arizona.
(E) During the fourth quarter, GM recorded adjustments to previous
estimated charges related to the pending sale of GMAC. These
adjustments were recorded beginning in the second quarter of 2006 and
were necessary in order to revise previously estimated charges based
on the closing.
At the end of November 2006, GM closed its sale of 51% of GMAC to a
consortium of investors, and the year-to-date amounts reflect the
charges associated with the sale. For the year-to-date period, GM
recognized gains on curtailments of its pension and post retirement
benefit liabilities of $607 million and favorable state and local
pre-tax contingencies of $24 million related to the sale. These gains
were offset by the loss on sale of GMAC of $447 million.
Additionally, as part of its investment and capital strategy, GMAC
Insurance Operations completed a securities portfolio review and
decided to reduce the elevated investment leverage and free up
capital for growth strategies and dividends. This was achieved by
reducing the investment in equities from nearly 35% of total invested
assets to approximately 10% and resulted in revenues of $872 million.
The proceeds from the sales were invested in fixed income securities
or will be used to remit dividends in 2007.
(F) During the third quarter of 2006, GMAC's commercial finance business
recognized goodwill and other intangible asset impairment charges of
$839 million. These charges were the result of a decision made by
management to eliminate certain low margin product lines in its
commercial finance business.
(G) During the third quarter of 2006, GM increased its contingent
liability associated with the restructuring of Delphi's operations
by $500 million, based on data available at that time and ongoing
discussions with Delphi and other stakeholders. GM established a
contingent liability in the fourth quarter of 2005 and recorded a
charge of $5.5 billion.
(H) GMNA recorded impairment charges related to product specific assets
and the write-down of plant assets in connection with the planned
stoppage of production at the Doraville, Georgia assembly plant.
(I) Relates to the gain on the sale of the following investments
recognized at GMAP.
- Gain of $666 million on the sale of 92.4 million shares of GM's
investment in Suzuki for approximately $2 billion in cash, reducing
GM's equity stake to approximately 3.7% (16.3 million shares).
- Gain of $311 million on the sale of GM's entire investment in Isuzu
Motors, Ltd.
(J) Relates to the following specific tax related items:
- Adjustments for the three and twelve months ended December 31, 2006
of $66 million and $214 million, respectively, primarily for the
reversal of a deferred tax asset valuation allowance at GM Daewoo
and residual taxes at Suzuki.
- GM recognized a $92 million tax benefit during the fourth quarter
associated with Medicare Part D subsidies related to certain Delphi
flow-back employees and retirees.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions except per share amounts)
(Unaudited)
Fourth Quarter Year Ended
------------------- ------------------
2007 2006 2007 2006
-------- -------- -------- -------
REPORTED
Total net sales and revenue $47,085 $50,803 $181,122 $205,601
Income (loss) from continuing
operations $(1,527) $855 $(43,297) $(2,423)
Income from discontinued
operations $-- $95 $256 $445
Net income (loss) $(722) $950 $(38,732) $(1,978)
Net margin from continuing
operations * (3.2)% 1.7% (23.9)% (1.2)%
Earnings (loss) per share -
basic
Continuing operations $(2.70) $1.51 $(76.52) $(4.29)
Income from discontinued
operations -- .17 .45 .79
Gain on sale of discontinued
operations 1.42 -- 7.62 --
-------- -------- -------- --------
Net income (loss) $(1.28) $1.68 $(68.45) $(3.50)
======== ======== ======== ========
Earnings (loss) per share -
diluted
Continuing operations $ (2.70) $1.51 $(76.52) $(4.29)
Income from discontinued
operations -- .17 .45 .79
Gain on sale of discontinued
operations 1.42 -- 7.62 --
-------- -------- -------- --------
Net income (loss) $(1.28) $1.68 $(68.45) $(3.50)
======== ======== ======== ========
ADJUSTED
Total net sales and revenue $47,085 $49,931 $181,122 $204,729
Income (loss) from continuing
operations $46 $85 $(279) $1,731
Net income (loss) $46 $180 $(23) $2,176
Net margin from continuing
operations * .1% .2% (.2)% 0.8%
Earnings (loss) per share -
basic
Continuing operations $.08 $.15 $(.49) $3.06
Net income (loss) $.08 $.32 $(.04) $3.85
Earnings (loss) per share -
diluted
Continuing operations $.08 $.15 $(.49) $3.05
Net income (loss) $.08 $.32 $(.04) $3.84
See reconciliation of adjusted financial results.
* Calculated as Income (loss) from continuing operations / Total net
sales and revenue.
General Motors Corporation
Summary Corporate Financial Results
(Unaudited)
Fourth Quarter Year Ended
------------------- ------------------
2007 2006 2007 2006
-------- -------- -------- -------
GM $1-2/3 par value average shares outstanding:
(Millions)
---------------------------------------
Reported (GAAP):
Basic shares 566 566 566 566
Diluted shares 566 567 566 566
Adjusted (Non-GAAP):
Basic shares 566 566 566 566
Diluted shares 567 567 566 567
Cash dividends per share of
common stock $.25 $.25 $1.00 $1.00
Automotive cash & marketable securities and
readily-available assets in VEBA at December 31: (Billions)
------------------
Automotive cash & marketable
securities $26.7 $23.9
Readily-available assets in VEBA .6 2.5
------- -------
Total automotive cash & marketable securities and
readily-available assets in VEBA $27.3 $26.4
======= =======
Automotive Operations: (Millions)
---------------------------------------
Depreciation $1,212 $1,355 $4,937 $4,575
Amortization of special tools 916 738 3,243 3,450
Amortization of intangible
assets 23 17 74 69
------- ------- ------- -------
Total $2,151 $2,110 $8,254 $8,094
======= ======= ======= =======
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2007 and 2006
Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
--------------------------------------------------
Net sales and
revenue:
GMNA $28,121 $28,516 $-- $-- $28,121 $28,516
GME 10,692 8,998 -- -- 10,692 8,998
GMLAAM 6,040 3,975 -- -- 6,040 3,975
GMAP 5,534 4,502 -- -- 5,534 4,502
Auto Elimination (a) (3,695) (2,352) -- -- (3,695) (2,352)
-------- ------- ------ ------ ------- -------
Total GMA 46,692 43,639 -- -- 46,692 43,639
Corporate & Other
(a) -- (44) -- -- -- (44)
-------- ------- ------ ------ ------- -------
Total Auto & Other 46,692 43,595 -- -- 46,692 43,595
-------- ------- ------ ------ ------- -------
GMAC -- 6,486 -- (872) -- 5,614
Other Financing (a) 393 722 -- -- 393 722
-------- ------- ------ ------ ------- -------
Total Financing 393 7,208 -- (872) 393 6,336
-------- ------- ------ ------ ------- -------
Total $47,085 $50,803 $-- $(872) $47,085 $49,931
======== ======= ====== ====== ======= =======
Income (loss) from continuing operations
before income taxes, other equity
income and minority interests:
GMNA $(1,221) $5 $192 $(99) $(1,029) $(94)
GME (449) (153) 230 142 (219) (11)
GMLAAM 424 74 -- -- 424 74
GMAP 13 (5) -- 76 13 71
Auto Elimination (24) (32) -- -- (24) (32)
-------- ------- ------ ------ ------- -------
Total GMA (1,257) (111) 422 119 (835) 8
Corporate & Other (1,652) 428 1,168 (631) (484) (203)
-------- ------- ------ ------ ------- -------
Total Auto & Other (2,909) 317 1,590 (512) (1,319) (195)
-------- ------- ------ ------ ------- -------
GMAC (394) 366 -- (872) (394) (506)
Other Financing 94 (347) -- 406 94 59
-------- ------- ------ ------ ------- -------
Total Financing (300) 19 -- (466) (300) (447)
-------- ------- ------ ------ ------- -------
Total $(3,209) $336 $1,590 $(978) $(1,619) $(642)
======== ======= ====== ====== ======= =======
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2007 and 2006
Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
--------------------------------------------------
Equity income (loss), net of tax:
GMNA $(28) $(18) $-- $-- $(28) $(18)
GME 14 7 -- -- 14 7
GMLAAM 8 11 -- -- 8 11
GMAP 90 86 -- -- 90 86
Auto Elimination
(a) -- -- -- -- -- --
-------- ------ ----- ------ ------- -------
Total GMA 84 86 -- -- 84 86
Corporate & Other -- (2) -- -- -- (2)
-------- ------ ----- ------ ------- -------
Total Auto & Other 84 84 -- -- 84 84
-------- ------ ----- ------ ------- -------
GMAC -- (2) -- -- -- (2)
Other Financing -- -- -- -- -- --
-------- ------ ----- ------ ------- -------
Total Financing -- (2) -- -- -- (2)
-------- ------ ----- ------ ------- -------
Total $84 $82 $-- $-- $84 $82
======== ====== ===== ====== ======= =======
Minority interests, net of tax:
GMNA $(3) $(17) $-- $-- $(3) $(17)
GME (10) (8) -- -- (10) (8)
GMLAAM (8) (9) -- -- (8) (9)
GMAP (31) (52) -- -- (31) (52)
Auto Elimination
(a) -- -- -- -- -- --
-------- ------ ----- ------ ------- -------
Total GMA (52) (86) -- -- (52) (86)
Corporate & Other 11 -- -- -- 11 --
-------- ------ ----- ------ ------- -------
Total Auto & Other (41) (86) -- -- (41) (86)
-------- ------ ----- ------ ------- -------
GMAC -- -- -- -- -- --
Other Financing (4) -- -- -- (4) --
-------- ------ ----- ------ ------- -------
Total Financing (4) -- -- -- (4) --
-------- ------ ----- ------ ------- -------
Total $(45) $(86) $-- $-- $(45) $(86)
======== ====== ===== ====== ======= =======
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Fourth Quarter
2007 and 2006
Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
--------------------------------------------------
Pre-tax earnings
(loss): *
GMNA $(1,252) $(30) $192 $(99) $(1,060) $(129)
GME (445) (154) 230 142 (215) (12)
GMLAAM 424 76 -- -- 424 76
GMAP 72 29 -- 76 72 105
Auto Elimination (a) (24) (32) -- -- (24) (32)
-------- ------ ----- ------ ------- -------
Total GMA (1,225) (111) 422 119 (803) 8
Corporate & Other (1,641) 426 1,168 (631) (473) (205)
-------- ----- ----- ------ ------- -------
Total Auto & Other (2,866) 315 1,590 (512) (1,276) (197)
-------- ----- ----- ------ ------- -------
GMAC (394) 364 -- (872) (394) (508)
Other Financing (a) 90 (347) -- 406 90 59
-------- ----- ----- ------ ------- --------
Total Financing (304) 17 -- (466) (304) (449)
-------- ----- ----- ------ ------- --------
Total $(3,170) $332 $1,590 $(978) $(1,580) $ (646)
======== ===== ===== ====== ======= =======
Income tax expense (benefit):
Corporate & Other $(1,553) $(256) $17 $(36) $(1,536) $(292)
Other Financing (a) (90) (267) -- (172) (90) (439)
-------- ----- ----- ------ ------- -------
Total $(1,643) $(523) $17 $(208) $(1,626) $(731)
======== ===== ===== ====== ======= =======
See footnotes.
* 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 Ended
2007 and 2006
Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
--------------------------------------------------
Net sales and revenue:
GMNA $112,448 $116,653 $-- $-- $112,448 $116,653
GME 37,397 33,278 -- -- 37,397 33,278
GMLAAM 18,894 14,627 -- -- 18,894 14,627
GMAP 21,003 15,532 -- -- 21,003 15,532
Auto Elimination(a) (11,543) (8,655) -- -- (11,543) (8,655)
-------- -------- ------ ------ -------- --------
Total GMA 178,199 171,435 -- -- 178,199 171,435
Corporate & Other(a) -- (256) -- -- -- (256)
-------- -------- ------ ------ -------- --------
Total Auto & Other 178,199 171,179 -- -- 178,199 171,179
-------- -------- ------ ------ -------- --------
GMAC -- 33,629 -- (872) -- 32,757
Other Financing (a) 2,923 793 -- -- 2,923 793
-------- -------- ------ ------ -------- --------
Total Financing 2,923 34,422 -- (872) 2,923 33,550
-------- -------- ------ ------ -------- --------
Total $181,122 $205,601 $-- $(872)$181,122 $204,729
======== ======== ====== ====== ======== ========
Income (loss) from continuing operations
before income taxes, other equity income and
minority interests:
GMNA $(3,290) $(7,575) $1,779 $5,908 $(1,511) $(1,667)
GME (541) (312) 579 654 38 342
GMLAAM 1,349 527 -- 43 1,349 570
GMAP 557 1,059 63 (901) 620 158
Auto Elimination (a) (59) (34) -- -- (59) (34)
-------- -------- ------ ------ -------- -------
Total GMA (1,984) (6,335) 2,421 5,704 437 (631)
Corporate & Other (3,619) (1,188) 2,344 (126) (1,275) (1,314)
-------- -------- ------ ------ -------- -------
Total Auto & Other (5,603) (7,523) 4,765 5,578 (838) (1,945)
-------- -------- ------ ------ -------- -------
GMAC (1,147) 2,242 -- (33) (1,147) 2,209
Other Financing 497 (377) -- 447 497 70
-------- -------- ------ ------ -------- -------
Total Financing (650) 1,865 -- 414 (650) 2,279
-------- -------- ------ ------ -------- -------
Total $(6,253) $(5,658) $4,765 $5,992 $ (1,488) $334
======== ======== ====== ====== ======== ========
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year Ended
2007 and 2006
Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
--------------------------------------------------
Equity income (loss), net of tax:
GMNA $22 $104 $-- $-- $22 $104
GME 44 36 -- -- 44 36
GMLAAM 31 16 -- -- 31 16
GMAP 425 365 -- -- 425 365
Auto Elimination
(a) -- -- -- -- -- --
------- ------ ------ ------ -------- -------
Total GMA 522 521 -- -- 522 521
Corporate & Other 2 3 -- -- 2 3
------- ------ ------ ------ -------- -------
Total Auto & Other 524 524 -- -- 524 524
------- ------ ------ ------ -------- -------
GMAC -- (11) -- -- -- (11)
Other Financing -- -- -- -- -- --
------- ------ ------ ------ -------- -------
Total Financing -- (11) -- -- -- (11)
------- ------ ------ ------ -------- -------
Total $524 $513 $-- $-- $524 $513
======= ====== ====== ====== ======== ========
Minority interests, net of tax:
GMNA $ (46) $ (63) $-- $-- $ (46) $(63)
GME (27) (21) -- -- (27) (21)
GMLAAM (32) (25) -- -- (32) (25)
GMAP (301) (225) -- 105 (301) (120)
Auto Elimination
(a) -- -- -- -- -- --
------- ------ ------ ------ -------- -------
Total GMA (406) (334) -- 105 (406) (229)
Corporate & Other 12 -- -- -- 12 --
------- ------ ------ ------ -------- -------
Total Auto & Other (394) (334) -- 105 (394) (229)
------- ------ ------ ------ -------- -------
GMAC -- 10 -- -- -- 10
Other Financing (12) -- -- -- (12) --
------- ------ ------ ------ -------- -------
Total Financing (12) 10 -- -- (12) 10
------- ------ ------ ------ -------- -------
Total $ (406) $ (324) $-- $105 $(406) $(219)
======= ====== ====== ====== ======== ========
See footnotes.
General Motors Corporation
Summary Corporate Financial Results
(Dollars in millions)
(Unaudited)
Year Ended
2007 and 2006
Reported Special Items Adjusted
-------- ------------- --------
2007 2006 2007 2006 2007 2006
----------------------------------------------------
Pre-tax earnings (loss): *
GMNA $ (3,314)$ (7,534) $1,779 $5,908 $(1,535) $(1,626)
GME (524) (297) 579 654 55 357
GMLAAM 1,348 518 -- 43 1,348 561
GMAP 681 1,199 63 (796) 744 403
Auto Elimination (a) (59) (34) -- -- (59) (34)
------- ------ ------ ------ ------- -------
Total GMA (1,868) (6,148) 2,421 5,809 553 (339)
Corporate &
Other(a) (3,605) (1,185) 2,344 (126) (1,261) (1,311)
------- ------ ------ ------ ------- -------
Total Auto &
Other (5,473) (7,333) 4,765 5,683 (708) (1,650)
-------- -------- -------- -------- -------- --------
GMAC (1,147) 2,241 -- (33) (1,147) 2,208
Other Financing (a) 485 (377) -- 447 485 70
-------- -------- -------- -------- -------- --------
Total Financing (662) 1,864 -- 414 (662) 2,278
-------- -------- -------- -------- -------- --------
Total $(6,135) $(5,469) $4,765 $6,097 $(1,370) $628
======== ======== ======== ======== ======== ========
Income tax expense (benefit):
Corporate & Other $37,129 $(3,881)$(38,130) $2,298 $(1,001) $(1,583)
Other Financing(a) 33 835 (123) (355) (90) 480
-------- -------- -------- -------- -------- --------
Total $37,162 $(3,046)$(38,253) $1,943 $(1,091) $(1,103)
======== ======== ======== ======== ======== ========
* Defined here as income (loss) from continuing operations before income
taxes and after equity income and minority interests.
See footnotes.
General Motors Corporation
Operating Statistics
(Unaudited)
Fourth Quarter Year Ended
-------------------- ---------------
2007 2006 2007 2006
Worldwide Production Volume: (Units in thousands)
--------------------
GMNA - Cars 358 446 1,526 1,821
GMNA - Trucks 684 661 2,741 2,828
-------- -------- -------- ---------
Total GMNA 1,042 1,107 4,267 4,649
GME 457 443 1,828 1,806
GMLAAM 253 215 960 830
GMAP* 627 509 2,231 1,896
-------- -------- -------- ---------
Total Worldwide ** 2,380 2,274 9,286 9,181
======== ======== ======== =========
Vehicle Unit Deliveries:
Chevrolet - Cars 162 160 757 798
Chevrolet - Trucks 355 377 1,509 1,617
Pontiac 81 88 358 410
GMC 125 118 506 481
Buick 42 50 186 241
Saturn 52 58 240 226
Cadillac 60 57 215 227
Other 20 32 96 125
-------- -------- -------- ---------
Total United States 897 940 3,867 4,125
Canada, Mexico and Other 157 169 649 682
-------- -------- -------- ---------
Total GMNA 1,054 1,109 4,516 4,807
GME 529 475 2,182 2,003
GMLAAM 341 290 1,236 1,035
GMAP * 382 327 1,436 1,248
-------- -------- -------- ---------
Total Worldwide ** 2,306 2,200 9,370 9,093
======== ======== ======== =========
Market Share:
United States - Cars 18.7% 20.2% 19.4% 20.7%
United States - Trucks 27.0% 26.4% 27.0% 27.1%
Total United States 23.1% 23.6% 23.5% 24.2%
Total GMNA 22.7% 23.2% 23.0% 23.8%
Total GME 9.3% 9.1% 9.5% 9.2%
Total GMLAAM 17.6% 17.9% 17.2% 17.0%
Total GMAP 7.1% 6.6% 6.9% 6.5%
Total Worldwide 13.1% 13.3% 13.3% 13.5%
U.S. Retail/Fleet Mix:
% Fleet Sales - Cars 31.2% 38.1% 34.9% 36.5%
% Fleet Sales - Trucks 19.6% 18.5% 20.5% 20.7%
Total Vehicles 23.9% 25.8% 26.1% 26.9%
GMNA Capacity Utilization *** 86.2% 89.5% 88.3% 93.1%
* GMAP production and sales volume includes SAIC-GM Wuling Automobile
Co. Ltd. joint venture vehicles.
** Total Worldwide may include rounding differences.
*** Two shift rated, annualized.
General Motors Corporation
Operating Statistics
(Unaudited)
Fourth Quarter Year Ended
-------------------- ---------------
2007 2006 2007 2006
--------------------------------------
GMAC Automotive Finance
Operations Consumer Credit
(North America)
Net charge-offs as a % of
managed receivables 1.30% 1.36% 1.20% 1.20%
Retail contracts 30 days
delinquent - % of average
number of contracts
outstanding (b) 2.77% 2.62% 2.58% 2.49%
Share of GM retail sales (U.S.
only)
Total consumer volume (retail
and lease) as % of retail 43% 36% 45% 48%
SmartLease as % of retail 13% 14% 17% 18%
Worldwide Employment at
December 31: (Thousands)
-----------------
United States hourly (c) 78 89
United States - Salaried (c) 32 33
----- -----
Total United States 110 122
Canada, Mexico and Other 29 30
----- -----
GMNA 139 152
GME 57 60
GMLAAM 34 32
GMAP 34 34
Other 2 2
----- -----
Total GM 266 280
===== =====
(Billions)
---------------------------------------
Worldwide Payroll $4.6 $5.6 $18.0 $22.3
Footnotes:
(a) Auto Eliminations, Corporate & Other and Other Financing include
inter-company eliminations.
(b) Excludes accounts in bankruptcy.
(c) Approximately 2,400 hourly and 1,250 salary employees are excluded
from 2007 data due to the sale of Allison Transmission.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended
December 31,
---------------------
2007 2006
------- -------
Net sales and revenue
Automotive sales $46,692 $43,595
Financial services and insurance revenue 393 7,208
-------- --------
Total net sales and revenue 47,085 50,803
-------- --------
Costs and expenses
Automotive cost of sales 43,997 39,144
Selling, general and administrative expense 4,207 3,910
Financial services and insurance expense 408 6,186
Other expenses 1,174 1,087
-------- --------
Total costs and expenses 49,786 50,327
-------- --------
Operating income (loss) (2,701) 476
Equity in loss of GMAC LLC (371) (5)
Automotive and other interest expense (646) (781)
Automotive interest income and other
non-operating income (expense) 509 646
-------- --------
Income (loss) from continuing operations before
income taxes, other equity income and minority
interests (3,209) 336
Income tax benefit (1,643) (523)
Equity income, net of tax 84 82
Minority interests, net of tax (45) (86)
-------- --------
Income (loss) from continuing operations (1,527) 855
Discontinued operations
Income from discontinued operations, net of tax -- 95
Gain on sale of discontinued operations, net of
tax 805 --
-------- --------
Income from discontinued operations 805 95
-------- --------
Net income (loss) $ (722) $950
======== ========
Basic earnings (loss) per share
Continuing operations $(2.70) $1.51
Discontinued operations 1.42 .17
--------- --------
Total $(1.28) $1.68
======== ========
Weighted average common shares outstanding,
basic (millions) 566 566
========= ========
Diluted earnings (loss) per share
Continuing operations $(2.70) $1.51
Discontinued operations 1.42 .17
-------- --------
Total (1.28) 1.68
======== ========
Weighted average common shares outstanding,
diluted (millions) 566 567
========= ========
Cash dividends per share $0.25 $0.25
========= ========
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
Years Ended December 31,
2007 2006 2005
-------- -------- -------
Net sales and revenue
Automotive sales $178,199 $171,179 $158,623
Financial services and
insurance revenue 2,923 34,422 34,427
------- -------- -------
Total net sales and revenue 181,122 205,601 193,050
------- -------- -------
Costs and expenses
Automotive cost of sales 166,259 163,742 158,254
Selling, general and
administrative expense 14,412 13,650 13,003
Financial services and
insurance expense 2,742 29,794 30,813
Other expenses 2,099 4,238 7,024
------- -------- -------
Total costs and expenses 185,512 211,424 209,094
------- -------- -------
Operating loss (4,390) (5,823) (16,044)
Equity in loss of GMAC LLC (1,245) (5) --
Automotive and other interest expense (2,902) (2,642) (2,534)
Automotive interest income and other
non-operating income 2,284 2,812 1,349
------- -------- -------
Loss from continuing operations
before income taxes,
equity income and minority
interests and cumulative
effect of a change in
accounting principle (6,253) (5,658) (17,229)
Income tax expense (benefit) 37,162 (3,046) (6,046)
Equity income, net of tax 524 513 610
Minority interests, net of tax (406) (324) (48)
------ -------- -------
Loss from continuing operations
before cumulative
effect of a change in
accounting principle (43,297) (2,423) (10,621)
Discontinued operations
Income from discontinued
operations, net of tax 256 445 313
Gain on sale of discontinued
operations, net of tax 4,309 -- --
------- --------- --------
Income from discontinued operations 4,565 445 313
Cumulative effect of a change
in accounting principle -- -- (109)
-------- --------- --------
Net loss $(38,732) $(1,978) $(10,417)
======== ======== ========
Basic earnings (loss) per share
Continuing operations $(76.52) $(4.29) $(18.78)
Discontinued operations 8.07 0.79 0.55
Cumulative effect of a change
in accounting principle -- -- (0.19)
-------- -------- --------
Total $(68.45) $(3.50) $(18.42)
======== ======== ========
Weighted average common shares
outstanding, basic (millions) 566 566 565
======= ======== =======
Diluted earnings (loss) per share
Continuing operations $(76.52) $(4.29) $(18.78)
Discontinued operations 8.07 0.79 0.55
Cumulative effect of a change
in accounting principle -- -- (0.19)
-------- -------- --------
Total $(68.45) $(3.50) $(18.42)
======== ======== ========
Weighted average common shares
outstanding, diluted (millions) 566 566 565
======== ======== ========
Cash dividends per share $1.00 $1.00 $2.00
======== ======== ========
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Dollars in millions)
December 31,
2007 2006
ASSETS
Current Assets
Cash and cash equivalents $24,549 $23,774
Marketable securities 2,139 138
-------- --------
Total cash and marketable securities 26,688 23,912
Accounts and notes receivable, net 9,659 8,216
Inventories 14,939 13,921
Equipment on operating leases, net 5,283 6,125
Deferred income taxes and other current assets 2,594 11,957
-------- --------
Total current assets 59,163 64,131
Financing and Insurance Operations Assets
Cash and cash equivalents 268 349
Investments in securities 215 188
Equipment on operating leases, net 6,712 11,794
Equity in net assets of GMAC LLC 7,079 7,523
Other assets 2,715 2,269
-------- --------
Total Financing and Insurance Operations assets 16,989 22,123
Non-Current Assets
Equity in net assets of nonconsolidated affiliates 1,919 1,969
Property, net 43,017 41,934
Intangible assets, net 1,066 1,118
Deferred income taxes 2,116 33,079
Prepaid pension 20,175 17,366
Other assets 4,438 4,584
-------- --------
Total non-current assets 72,731 100,050
-------- --------
Total assets $148,883 $186,304
======== ========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable (principally trade) $29,439 $26,931
Short-term borrowings and current
portion of long-term debt 6,047 5,666
Accrued expenses 35,327 35,225
-------- --------
Total current liabilities 70,813 67,822
Financing and Insurance Operations Liabilities
Accounts payable 30 192
Debt 4,908 9,438
Other liabilities and deferred income taxes 875 1,947
-------- --------
Total Financing and Insurance Operations
liabilities 5,813 11,577
Non-Current Liabilities
Long-term debt 33,384 33,067
Postretirement benefits other than pensions 47,375 50,409
Pensions 11,381 11,934
Other liabilities and deferred income taxes 15,597 15,957
-------- --------
Total non-current liabilities 107,737 111,367
-------- --------
Total liabilities 184,363 190,766
Commitments and contingencies
Minority interests 1,614 1,190
Stockholders' Equity (Deficit)
Preferred stock, no par value,
authorized 6,000,000, no shares
issued and outstanding -- --
$1 2/3 par value common stock
(2,000,000,000 shares authorized,
756,637,541 and 566,059,249 shares
issued and outstanding at
December 31, 2007, respectively,
and 756,637,541 and 565,670,254
at December 31, 2006, respectively) 943 943
Capital surplus (principally
additional paid-in capital) 15,319 15,336
Retained earnings (deficit) (39,392) 195
Accumulated other comprehensive loss (13,964) (22,126)
-------- --------
Total stockholders' deficit (37,094) (5,652)
-------- --------
Total liabilities, minority interests,
and stockholders' deficit $148,883 $186,304
======== ========
SOURCE General Motors Corporation
-0- 02/12/2008
/NOTE TO EDITORS: For additional media information visit
http://media.gm.com ./
/CONTACT: Renee Rashid-Merem, +1-313-665-3128, renee.rashid-merem@gm.com,
or Randy Arickx, +1-313-667-0006, randy.c.arickx@gm.com, both of General
Motors Corporation/
/Web site: http://www.gm.com
http://media.gm.com /
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