Final Results
GM Reports 2004 Financial Results
-- GMAC Posts Record 2004 Earnings, 10th Year of Net Income Growth
-- Global Automotive Earnings Rise in 2004, Sales Volumes Gain 4.3 Percent
-- Record 2004 Revenue of $193 billion
DETROIT, Jan. 19 -- General Motors Corp. (NYSE: GM) today reported adjusted
2004 earnings from continuing operations of $3.6 billion, or $6.40 per diluted
share, led by record earnings from financial services and a 12-percent
improvement in automotive earnings. These results, which were in line with GM's
original guidance, compare to earnings of $3.2 billion, or $5.62 per share, in
2003. Adjusted revenue rose 4.5 percent to a record $193 billion.
Consolidated net income for 2004, including special items, totaled
$3.7 billion, or $6.51 per share, compared with $3.8 billion, or $7.14 per
share, in 2003.
'GM reported solid overall results in 2004, despite challenging
competitive conditions in many markets around the globe,' said GM Chairman and
Chief Executive Officer Rick Wagoner. 'For the tenth-consecutive year,
General Motors Acceptance Corp. (GMAC) reported annual earnings growth,
posting a record profit of $2.9 billion. And, our automotive operations
recorded their second-highest vehicle-sales volume in history, with market-
share gains in three out of four automotive regions last year.
'We believe strongly that the auto business is a growth business and we
intend to fully participate in that growth with a steady cadence of new, best-
in-segment cars and trucks in all major markets around the globe,' Wagoner
said.
Fourth Quarter
GM's adjusted earnings from continuing operations totaled $569 million, or
$1.01 per share in the fourth quarter of 2004, down from $838 million, or
$1.47 per share in the fourth quarter of 2003. Including special items and
discontinued operations, GM reported net income of $630 million, or $1.11 per
share in the fourth quarter of 2004, down from $1.0 billion, or $2.13 per
share in the year-ago period. Adjusted revenue rose 4.7 percent to $51.2
billion.
The results for the fourth quarter of 2004 include special items with a
net favorable effect of $61 million, or $0.10 per share (see 'Highlights').
The results for the fourth quarter of 2003 include net-favorable special items
totaling $339 million, or $0.72 per share.
GM financial results described throughout the remainder of this release
exclude special items unless otherwise noted (see 'Highlights').
GMAC
GMAC earned a record $2.9 billion in 2004, up from $2.8 billion in 2003.
In the fourth quarter of 2004, GMAC earned $611 million, down slightly from
record earnings of $630 million in the fourth quarter of 2003.
'GMAC has done a terrific job transforming itself from an auto-finance
unit into a broad-based financial-services company that is focused on
producing sustainable, long-term earnings,' Wagoner said. 'In addition, GMAC
has diversified its sources of funding to strengthen its balance sheet in the
face of a higher-interest-rate environment. Going forward, we expect GMAC to
continue to be a significant source of income for GM, and an important partner
in our drive to grow sales volumes around the world.'
GMAC's financing operations reported net income of $1.5 billion in
calendar-year 2004, up from $1.4 billion in 2003. The increase reflects
considerable improvement in earnings from international operations, lower
credit-loss provisions, improved proceeds from the sale of off-lease vehicles
in North America, and the impact of favorable tax settlements, partially
offset by lower net-interest margins.
Mortgage operations earned $1.1 billion in 2004, a decline from record net
income of $1.3 billion in 2003 as residential-mortgage industry volumes
declined by approximately 30 percent. Despite the lower industry volumes,
GMAC's mortgage operations experienced market-share gains, asset growth,
improved mortgage-servicing results and an increase in fee-based revenue.
GMAC's insurance operations generated record net income of $329 million in
2004, up from $179 million in 2003. The increase reflects a combination of
strong results achieved through increased premium revenue, favorable loss
experience, and improved investment-portfolio performance.
GM Automotive Operations
GM's automotive operations earned $1.2 billion in 2004, up from $1.1
billion in 2003. Worldwide production totaled 9.1 million units in 2004, up
from 8.8 million in 2003. GM's global automotive business reported earnings
of $235 million in the fourth quarter of 2004, down from $396 million in the
year-ago quarter. The latest fourth-quarter results reflect a significant
improvement at GM's Latin America/Africa/Mid-East (GMLAAM) region and improved
earnings at GM North America (GMNA), offset by losses at GM Europe (GME) and
reduced earnings at GM Asia Pacific (GMAP).
GM reported market-share gains in three out of four automotive regions in
2004. GM ended 2004 with a global market share of 14.5 percent, down slightly
from 14.6 percent in 2003.
GMNA earned $1.2 billion in 2004, in line with 2003 results. GM's market
share in North America declined to 26.7 percent in 2004 from 27.4 percent in
2003. GMNA earned $416 million in the fourth quarter of 2004, up from $397
million in the fourth quarter of 2003, as continued cost reduction and
favorable tax settlements were partially offset by lower production volumes
and unfavorable product mix.
'While we fell short of our goal to gain market share in North America in
2004, we had a solid finish to the year,' Wagoner said. 'Sales volumes for
our newest vehicles gained momentum throughout the year and we continued to
make progress in the key areas of productivity, quality, and cost reduction.'
Among the highlights for 2004:
-- GM set U.S. industry records in total truck and sport-utility-vehicle
sales for the fourth-consecutive year and once again sold more
full-size pickups than any other manufacturer.
-- Chevrolet sold more passenger cars in the United States than any other
brand and had its best sales year since 1988.
-- Cadillac's U.S. sales rose 8.4 percent in 2004, marking its best annual
sales performance since 1990.
-- GMC sold a record 602,064 vehicles in 2004, the eleventh time in a
dozen years that GMC has established a new sales record.
'We're encouraged by the success of Cadillac, Chevrolet and GMC, and we're
determined to build on that success with our other brands,' Wagoner said. 'In
2005, our product portfolio includes a number of new high-volume vehicles that
are continuing to ramp, such as the Pontiac G6, the Chevrolet Cobalt, the
Buick LaCrosse and the Cadillac STS. In addition, we are also introducing
later this year the Pontiac Solstice, the Hummer H3, the Chevrolet HHR and the
Cadillac DTS, among others.'
GME posted a loss of $742 million in 2004, compared with a loss of $286
million in 2003. In the fourth quarter of 2004, GME reported a loss of $345
million, compared with a loss of $66 million in the year-ago quarter.
'GM Europe reached an important milestone in December when we agreed with
our European labor unions on the framework for a restructuring plan that will
help GME reduce its cost footprint,' Wagoner said. 'But, we're also focused
on improving revenue. In 2004, GME increased its market share to 9.5 percent,
its highest level in five years. We plan to build on that success with the
introduction of the Opel Astra 3-door next month, followed by the Saab 9-3
sport hatch, and the Opel Zafira later this year. The expansion of the
Chevrolet brand in Europe is well underway and already contributing to market
share gains.'
GMAP reported record net income of $729 million in 2004, up from $577
million in 2003. The region's market share rose to 5.2 percent in 2004, up
from 4.9 percent in 2003. GMAP earned $117 million in the fourth quarter of
2004, compared with earnings of $177 million in the year-ago quarter.
'GM's Asia Pacific operations again delivered solid results in a more-
challenging environment,' Wagoner said. 'While sales in China slowed in the
second half of the year, after the government took actions to slow rapid
growth, GM China sold almost half a million vehicles in 2004, a gain of 27
percent. We're also pleased with the improved results in Thailand and India,
and the steady progress we're making at GM Daewoo Auto & Technology Co.
(GM-Daewoo).
'GM-Daewoo continues to be a global force,' Wagoner said. 'Besides giving
us a major presence in the Korean market, and a strong addition to our global
product-development capability, GM Daewoo is helping us grow our market
position all around the world. In 2005, GM-Daewoo is expected to produce more
than one million vehicles.'
GMLAAM earned $85 million in 2004, a significant improvement from the
year-ago loss of $331 million. GMLAAM's market share rose to 17.4 percent in
2004 from 16.3 percent in 2003. GMLAAM earned $47 million in the fourth
quarter of 2004, compared with a year-ago loss of $112 million.
'GMLAAM returned to profitability in 2004, reflecting a lot of hard work
on the cost side of the business and some very successful product
introductions,' Wagoner said. 'We're particularly pleased with our
performance in Brazil, where GM became the leading automaker for the first
time in its 79-year history of operations there. Volume was also strong in
the Mid-East region, where we sold nearly 100,000 units in 2004, an
increase of 60 percent from 2003.'
Cash and Liquidity
Cash, marketable securities, and short-term assets of the Voluntary
Employees' Beneficiary Association (VEBA) Trust totaled $23.3 billion at
Dec. 31, 2004, excluding financing and insurance operations, down from $24.5
billion on Sept. 30, 2004. During the fourth quarter of 2004, GM pre-funded
its retiree-health-care obligation by an additional $4 billion, bringing the
year-end funding balance for retiree-health-care obligations to
approximately $20 billion. Automotive operating cash flow for the year ended
Dec. 31, 2004 totaled $4.2 billion.
GM's U.S. hourly and salaried pension plans were $3 billion over-funded at
the end of 2004, a significant improvement from the previous year when the
plans were $300 million over-funded. Asset returns of approximately 14
percent more than offset a decline in the discount rate to 5.75 percent at the
end of 2004 from 6.00 percent at the end of 2003.
Profit Sharing
Approximately 119,000 hourly employees in the United States will receive a
profit-sharing payment in 2005. A typical U.S. hourly employee, eligible
under the profit-sharing program, would qualify for a payment of approximately
$195.
Looking Ahead
GM expects solid, worldwide economic growth in 2005 with global industry
sales surpassing 62 million units. GM expects North American industry sales
of approximately 20 million units, about flat with 2004 results. Industry
sales in Europe are expected to total approximately 20 million units, on par
with 2004, while industry sales in the Asia-Pacific region are expected to
rise to approximately 17.7 million units. Industry sales in the GMLAAM
region are expected to increase to approximately 4.4 million units in 2005.
GM expects 2005 earnings to be approximately $4.00 to $5.00 per share,
excluding any special items and at current dilution levels. GM expects to
increase global sales volumes, generate $2 billion in operating cash flow and
increase capital expenditures to approximately $8 billion in 2005. GM
estimates break-even or better results in the first quarter of 2005, excluding
any special items, reflecting lower production volumes and less-favorable
product mix.
In this press release and related comments by General Motors management,
our use of the words 'expect,' 'anticipate,' 'estimate,' 'project,'
'forecast,' 'outlook,' 'target,' 'objective,' 'plan,' 'goal,' 'pursue,' 'on
track,' and similar expressions is intended to identify forward-looking
statements. While these statements represent our current judgment on what the
future may hold, and we believe these judgments are reasonable, actual results
may differ materially due to numerous important factors that are described in
GM's most recent report on SEC Form 10-K (at page II-20) which may be revised
or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such factors
include, among others, the following: changes in economic conditions;
currency-exchange rates or political stability; shortages of fuel, labor
strikes or work stoppages; market acceptance of the corporation's new
products; significant changes in the competitive environment; changes in laws,
regulations and tax rates; and, the ability of the corporation to achieve
reductions in cost and employment levels to realize production efficiencies
and implement capital expenditures at levels and times planned by management.
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
Management believes that the adjusted information set forth herein is
useful to investors as it represents how Management views the results of
operations and cash of the Corporation and, therefore, is the basis on
which internal evaluation metrics are determined. The internal evaluation
metrics are those used by the Corporation's Board of Directors to
evaluate Management.
Three Months Ended Year to Date
Dec. 31, 2004 Dec. 31, 2004
--------------- ---------------
Net $1-2/3 Net $1-2/3
Income EPS Income EPS
------ ----- ------ -----
REPORTED
Net income $630 $1.11 $3,691 $6.51
=== ==== ===== ====
ADJUSTMENTS
Gain on Sale of XM Stock (A) (118) (0.21) (118) (0.21)
Plant & Facility Impairments (B) 78 0.14 78 0.14
Asset Impairments (C) 383 0.68 383 0.67
Write-down of Fiat Investment (D)136 0.24 136 0.24
Tax Items (E) (540) (0.95) (540) (0.95)
--- ---- ----- ----
Subtotal (61) (0.10) (61) (0.11)
ADJUSTED
--- ---- ----- ----
Adjusted income $569 $1.01 $3,630 $6.40
=== ==== ===== ====
(A) In December 2004, GM contributed 11 million shares of XM
Satellite Radio Holdings Inc. Class A common stock valued
at $432 million to its Voluntary Employees' Beneficiary
Association (VEBA). The contribution resulted in a pre-tax
gain of $190 million ($118 million after tax).
(B) Includes charges for previously announced facilities
rationalization actions at GM's Baltimore, MD and Linden,
NJ plants.
(C) Reflects the results of GM's annual review of the carrying
value of its long-lived assets held and used, other than
goodwill and intangible assets with indefinite lives.
Impairments relate to product-specific assets and facilities.
(D) Relates to GM's investment in Fiat Auto Holdings, B.V. and
reflects completion of an impairment study relating to the
carrying value of that investment, which resulted in the
write-off of the remaining balance of $220 million pre-tax
($136 million after tax).
(E) Reflects various adjustments resulting from changes in tax
laws both in the U.S. and overseas and capital loss
carryforwards.
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
Three Months Ended Year to Date
Dec. 31, 2003 Dec. 31, 2003
--------------- ---------------
Net $1-2/3 Net $1-2/3
Income EPS Income EPS
------ ----- ------ -----
REPORTED
Income (loss) from continuing
operations $(2) $ - $2,862 $5.03
(Loss) from discontinued
operations (164) (0.06) (219) (0.09)
Gain on sale of discontinued
operations 1,179 2.19 1,179 2.20
----- ---- ----- ----
Net income 1,013 2.13 3,822 7.14
ADJUSTMENTS
Hourly Retiree Lump Sum/
Vouchers (A) 725 1.27 725 1.28
Reserve for Idled Workers (B) (103) (0.18) (103) (0.18)
GME Restructuring Charge (C) 218 0.38 218 0.38
Gain on Sale of GM Defense (D) - - (505) (0.89)
Gain on sale of Hughes (1,179) (2.19) (1,179) (2.20)
----- ---- ----- ----
Subtotal (339) (0.72) (844) (1.61)
ADJUSTED
Income from continuing
operations $838 $1.47 $3,197 $5.62
(Loss) from discontinued
operations (164) (0.06) (219) (0.09)
--- ---- ----- ----
Adjusted income $674 $1.41 $2,978 $5.53
=== ==== ===== ====
(A) The October 2003 contract with the United Auto Workers
provided for lump-sum payments and vehicle discount vouchers
for retirees, accounted for in GMNA and Other.
(B) The Reserve for Idled Workers primarily relates to adjustments
to previously established reserves for the Janesville, Wis.
Plant, accounted for in GMNA.
(C) The GME Restructuring Charge relates to the initiative
implemented in the fourth quarter of 2003 to improve
competitiveness of GM's automotive operations in Europe.
(D) The Gain on Sale of GM Defense relates to the sale of GM's
light armored vehicle business to General Dynamics Corporation
for net proceeds of approximately $1.1 billion.
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and
revenues $51,344 $48,839 $193,452 $185,837
Adjusted $51,154 $48,839 $193,262 $185,023
Income (loss) from continuing
operations $630 $(2) $3,691 $2,862
Adjusted $569 $838 $3,630 $3,197
(Loss) from
discontinued operations - $(164) - $(219)
Adjusted - $(164) - $(219)
Net income $630 $1,013 $3,691 $3,822
Adjusted $569 $674 $3,630 $2,978
Net margin from continuing
operations
(Income from continuing
operations/Total net sales
and revenues) 1.2% - 1.9% 1.5%
Adjusted 1.1% 1.7% 1.9% 1.7%
Earnings per share - basic
$1-2/3 par value
Continuing operations $1.12 $ - $6.54 $5.10
Discontinued operations - 2.17 - 2.14
---- ---- ---- ----
Earnings per share $1.12 $2.17 $6.54 $7.24
Earnings per share - diluted
$1-2/3 par value
Continuing operations $1.11 $ - $6.51 $5.03
Discontinued operations - 2.13 - 2.11
---- ---- ---- ----
Earnings per share $1.11 $2.13 $6.51 $7.14
Earnings per share - adjusted
diluted
$1-2/3 par value
Continuing operations $1.01 $ 1.47 $6.40 $5.62
Discontinued operations - (0.06) - (0.09)
---- ---- ---- ----
Earnings per share $1.01(1) $1.41 $6.40 $5.53
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 565 561 565 561
Diluted shares 566 571 567 569
Cash dividends per share
of common stocks
GM $1-2/3 par value $0.50 $0.50 $2.00 $2.00
See reconciliation of adjusted financial results and footnotes.
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
Book value per share of
common stocks at Dec. 31
GM $1-2/3 par value $50.63 $44.96
Auto & Other Operations
total cash & marketable
securities at Dec. 31
($Bil's) $19.8 $23.5
Cash in short-term VEBA 3.5 3.4
---- ----
Total Auto & Other cash
& marketable securities
plus short-term VEBA $23.3 $26.9
==== ====
Auto & Other Operations
($Mil's)
Depreciation $1,322 $1,380 $5,028 $4,526
Amortization of special
tools 1,325 1,362 3,562 3,391
Amortization of intangible
assets 14 10 39 29
----- ----- ----- -----
Total $2,661 $2,752 $8,629 $7,946
===== ===== ===== =====
GM's share of nonconsolidated
affiliates' net income (loss)
($Mil's)
Italy $28 $71 $87 $95
Japan $64 $71 $255 $196
China $33 $104 $417 $414
South Korea $(17) $(24) $(35) $(74)
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Total net sales
and revenues
GMNA $29,707 $30,979 $(190) $ - $29,517 $30,979
GME 8,248 7,283 - - 8,248 7,283
GMLAAM 2,884 1,919 - - 2,884 1,919
GMAP 2,085 1,540 - - 2,085 1,540
------ ------ --- -- ------ ------
Total GMA 42,924 41,721 (190) - 42,734 41,721
Other 179 108 - - 179 108
------ ------ --- -- ------ ------
Total Auto &
Other 43,103 41,829 (190) - 42,913 41,829
------ ------ --- -- ------ ------
GMAC 8,071 6,804 - - 8,071 6,804
Other Financing 170 206 - - 170 206
------ ------ --- -- ------ ------
Total FIO 8,241 7,010 - - 8,241 7,010
------ ------ --- -- ------ ------
Total net sales
and revenues $51,344 $48,839 $(190) $ - $51,154 $48,839
====== ====== === == ====== ======
Income (loss) from
continuing operations
before income taxes,
equity income, and
minority interests
GMNA $197 $(114) $125 $556 $322 $442
GME (975) (510) 372 311 (603) (199)
GMLAAM 63 (188) - - 63 (188)
GMAP 24 31 - - 24 31
----- ----- --- ----- --- -----
Total GMA (691) (781) 497 867 (194) 86
Other (627) (820) 269 447 (358) (373)
----- ----- --- ----- --- -----
Total Auto &
Other (1,318) (1,601) 766 1,314 (552) (287)
----- ----- --- ----- --- -----
GMAC 803 1,002 - - 803 1,002
Other Financing (12) 63 - - (12) 63
--- ----- --- --- --- -----
Total FIO 791 1,065 - - 791 1,065
--- ----- --- --- --- -----
Total income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests $(527) $(536) $766 $1,314 $239 $778
=== === === ===== === ===
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter
2004 and 2003
---------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Income (loss) from
continuing operations
GMNA $878 $52 $(462) $345 $416 $397
GME (579) (284) 234 218 (345) (66)
GMLAAM 47 (112) - - 47 (112)
GMAP 117 177 - - 117 177
--- --- --- --- --- ---
Total GMA 463 (167) (228) 563 235 396
Other (442) (511) 167 277 (275) (234)
--- --- --- --- --- ---
Total Auto &
Other 21 (678) (61) 840 (40) 162
--- --- --- --- --- ---
GMAC 611 630 - - 611 630
Other Financing (2) 46 - - (2) 46
--- --- -- -- --- ---
Total FIO 609 676 - - 609 676
--- --- -- -- --- ---
Income (loss) from
continuing
operations $630 $(2) $(61) $840 $569 $838
(Loss) from
discontinued
operations - (164) - - - (164)
Gain on sale of
discontinued
operations - 1,179 - (1,179) - -
--- ----- --- ----- --- ---
Net income (loss) $630 $1,013 $(61) $(339) $569 $674
=== ===== === === === ===
Income tax expense
(benefit)
GMNA $(691) $(97) $587 $211 $(104) $114
GME (367) (151) 138 93 (229) (58)
GMLAAM 15 (66) - - 15 (66)
GMAP (7) 18 - - (7) 18
----- --- --- --- --- ---
Total GMA (1,050) (296) 725 304 (325) 8
Other (198) (329) 102 170 (96) (159)
----- --- --- --- --- ---
Total Auto &
Other (1,248) (625) 827 474 (421) (151)
----- --- --- --- --- ---
GMAC 188 283 - - 188 283
Other Financing (10) 13 - - (10) 13
----- --- --- --- --- ---
Total FIO 178 296 - - 178 296
----- --- --- --- --- ---
Income tax expense
(benefit) $(1,070) $(329) $827 $474 $(243) $145
===== === === === === ===
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Fourth Quarter
2004 and 2003
---------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Effective tax rate
Total GM Corp. 203% 61% 108% 36% (102%) 19%
GMNA (351%) 85% 470% 38% (32%) 26%
GME 38% 30% 37% 30% 38% 29%
GMAC 23% 28% - - 23% 28%
Equity income (loss)
and minority interests
GMNA $(10) $69 $ - $ - $(10) $69
GME 29 75 - - 29 75
GMLAAM (1) 10 - - (1) 10
GMAP 86 164 - - 86 164
--- --- -- -- --- ---
Total GMA $104 $318 $ - $ - $104 $318
=== === == == === ===
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Total net sales
and revenues
GMNA $114,582 $116,310 $(190) $ - $114,392 $116,310
GME 30,820 27,478 - - 30,820 27,478
GMLAAM 8,792 5,387 - - 8,792 5,387
GMAP 6,978 5,338 - - 6,978 5,338
------- ------- --- --- ------- -------
Total GMA 161,172 154,513 (190) - 160,982 154,513
Other 373 1,318 - (814) 373 504
------- ------- --- --- ------- -------
Total Auto &
Other 161,545 155,831 (190) (814) 161,355 155,017
------- ------- --- --- ------- -------
GMAC 31,123 29,348 - - 31,123 29,348
Other Financing 784 658 - - 784 658
------- ------- --- --- ------ -------
Total FIO 31,907 30,006 - - 31,907 30,006
------- ------- --- --- ------ -------
Total net sales
and revenues $193,452 $185,837 $(190) $(814)$193,262 $185,023
======= ======= === === ======= =======
Income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests
GMNA $1,137 $915 $125 $556 $1,262 $1,471
GME (1,733) (909) 372 311 (1,361) (598)
GMLAAM 127 (474) - - 127 (474)
GMAP 52 61 - - 52 61
----- ----- --- --- ----- -----
Total GMA (417) (407) 497 867 80 460
Other (1,343) (1,101) 269 (367) (1,074) (1,468)
----- ----- --- --- ----- -----
Total Auto &
Other (1,760) (1,508) 766 500 (994) (1,008)
----- ----- --- --- ----- -----
GMAC 4,368 4,442 - - 4,368 4,442
Other Financing (39) 47 - - (39) 47
----- ----- --- --- ----- -----
Total FIO 4,329 4,489 - - 4,329 4,489
----- ----- --- --- ----- -----
Total income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests $2,569 $2,981 $766 $500 $3,335 $3,481
===== ===== === === ===== =====
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Income (loss) from
continuing operations
GMNA $1,635 $811 $(462) $345 $1,173 $1,156
GME (976) (504) 234 218 (742) (286)
GMLAAM 85 (331) - - 85 (331)
GMAP 729 577 - - 729 577
----- --- --- --- ----- -----
Total GMA 1,473 553 (228) 563 1,245 1,116
Other (676) (518) 167 (228) (509) (746)
----- --- --- --- ----- -----
Total Auto &
Other 797 35 (61) 335 736 370
----- ----- --- --- ----- -----
GMAC 2,913 2,793 - - 2,913 2,793
Other Financing (19) 34 - - (19) 34
----- ----- --- --- ----- -----
Total FIO 2,894 2,827 - - 2,894 2,827
----- ----- --- --- ----- -----
Income (loss) from
continuing
operations $3,691 $2,862 $(61) $335 $3,630 $3,197
(Loss)from
discontinued
operations - (219) - - - (219)
Gain on sale of
discontinued
operations - 1,179 - (1,179) - -
----- ----- --- ----- ----- -----
Net income (loss) $3,691 $3,822 $(61) $(844) $3,630 $2,978
===== ===== === === ===== =====
Income tax expense
(benefit)
GMNA $(529) $171 $587 $211 $58 $382
GME (655) (303) 138 93 (517) (210)
GMLAAM 31 (149) - - 31 (149)
GMAP (11) 44 - - (11) 44
----- --- --- --- --- ---
Total GMA (1,164) (237) 725 304 (439) 67
Other (683) (632) 102 (139) (581) (771)
----- --- --- --- --- ---
Total Auto &
Other (1,847) (869) 827 165 (1,020) (704)
----- ----- --- --- ----- -----
GMAC 1,447 1,591 - - 1,447 1,591
Other Financing (20) 9 - - (20) 9
----- ----- --- --- ----- -----
Total FIO 1,427 1,600 1,427 1,600
----- ----- --- --- ----- -----
Income tax expense
(benefit) $(420) $731 $827 $165 $407 $896
=== === === === === ===
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Effective tax rate
Total GM Corp. (16%) 25% 108% 33% 12% 26%
GMNA (47%) 19% 470% 38% 5% 26%
GME 38% 33% 37% 30% 38% 35%
GMAC 33% 36% - - 33% 36%
Equity income (loss)
and minority interests
GMNA $(31) $67 $ - $ - $(31) $67
GME 102 102 - - 102 102
GMLAAM (11) (6) - - (11) (6)
GMAP 666 560 - - 666 560
--- --- -- -- --- ---
Total GMA $726 $723 $ - $ - $726 $723
=== === == == === ===
General Motors Corporation
Operating Statistics
Fourth Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
(units in thousands)
Worldwide Wholesale Sales
United States - Cars 452 522 1,853 1,961
United States - Trucks 740 766 2,901 2,971
----- ----- ----- -----
Total United States 1,192 1,288 4,754 4,932
Canada, Mexico, and Other 186 196 710 675
----- ----- ----- -----
Total GMNA 1,378 1,484 5,464 5,607
GME 421 412 1,717 1,657
GMLAAM 235 183 769 561
GMAP 86 70 291 273
----- ----- ----- -----
Total Worldwide 2,120 2,149 8,241 8,098
===== ===== ===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 217 189 918 801
Chevrolet - Trucks 439 460 1,845 1,855
Pontiac 96 123 474 476
GMC 144 153 602 579
Buick 60 79 310 337
Oldsmobile 2 30 29 126
Saturn 41 54 212 271
Cadillac 65 62 234 216
Other 23 24 83 96
----- ----- ----- -----
Total United States 1,087 1,174 4,707 4,757
Canada, Mexico, and Other 187 169 705 683
----- ----- ----- -----
Total GMNA 1,274 1,343 5,412 5,440
GME 454 430 1,954 1,821
GMLAAM 216 182 737 584
GMAP 228 217 887 775
----- ----- ----- -----
Total Worldwide 2,172 2,172 8,990 8,620
===== ===== ===== =====
Market Share
United States - Cars 23.5% 26.8% 24.9% 25.7%
United States - Trucks 27.8% 30.2% 29.0% 30.0%
Total United States 26.0% 28.8% 27.2% 28.0%
Total North America 25.7% 28.0% 26.7% 27.4%
Total Europe 9.4% 9.2% 9.5% 9.3%
Total LAAM 18.9% 18.1% 17.4% 16.3%
Asia and Pacific 5.3% 5.4% 5.2% 4.9%
Total Worldwide 14.2% 15.0% 14.5% 14.6%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 35.1% 36.9% 36.7% 31.7%
% Fleet Sales - Trucks 17.4% 15.6% 16.4% 13.6%
Total Vehicles 24.2% 23.9% 24.5% 21.1%
GMNA Capacity Utilization
(2 shift rated) 83.0% 94.3% 85.8% 89.7%
GMNA Vehicle Revenue
Per Unit $19,698 $19,311
General Motors Corporation
Operating Statistics
Fourth Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
GMAC's Worldwide Cost of
Borrowing (3) 4.11% 3.48%
Period-end Debt Spreads Over
U.S. Treasuries
2 Year 170 bp 120 bp
5 Year 225 bp 140 bp
10 Year 270 bp 165 bp
GMAC Automotive Finance Operations
Consumer credit (North America)
Net charge-offs as a % of
managed receivables 1.07% 1.14% 1.11% 1.07%
Retail contracts 30 days
delinquent - % of average
number of contracts
outstanding (4) 2.20% 2.03% 2.11% 1.99%
Retail penetration (U.S. only)
Total retail (SmartLease,
SmartBuy and Retail) as %
of retail sales 63.6% 36.4% 45.0% 41.5%
SmartLease and SmartBuy
as % of retail sales 13.3% 8.5% 12.9% 8.8%
Off-lease vehicle
remarketing (U.S. only)
Average net gain per vehicle $22 $(83) $406 $73
Off-lease vehicles
remarketed (units in 000s) 84 107 414 611
GMAC Mortgage Operations
Origination volume($Bil's) $47.1 $42.9 $174.1 $218.2
Worldwide Employment
at December 31 (in 000's)
United States Hourly 111 118
United States Salary 39 40
--- ---
Total United States 150 158
Canada, Mexico, and Other 31 32
--- ---
GMNA 181 190
GME 61 62
GMLAAM (2) 29 23
GMAP 15 14
GMAC 34 32
Other 4 5
--- ---
Total 324 326
=== ===
Worldwide Payrolls ($Bil's) $5.6 $5.6 $21.5 $20.9
Footnotes:
---------
(1) This amount is comparable to First Call analysts' consensus.
(2) 2004 includes 3,000 employees as a result of the consolidation
of GM South Africa.
(3) Includes external debt for U.S. automotive finance, mortgage
operations, and insurance operations. Calculated by dividing
total interest expense (excluding mark to market adjustments
and inter-company interest) by total debt.
(4) Excludes accounts in bankruptcy.
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended December 31,
-------------------------------
2004 2003
---- ----
(dollars in millions except
per share amounts)
Total net sales and revenues $51,344 $48,839
------ ------
Cost of sales and other expenses 42,664 41,962
Selling, general, and administrative 5,868 4,753
expenses
Interest expense 3,339 2,660
------- ------
Total costs and expenses 51,871 49,375
------ ------
Income (loss) from continuing
operations before income
taxes and minority interests (527) (536)
Income tax (benefit) (1,070) (329)
Equity income and minority interests 87 205
----- ---
Income (loss) from continuing
operations 630 (2)
Income (loss) from discontinued
operations - (164)
Gain on sale of discontinued
operations - 1,179
----- -----
Earnings attributable to common
stocks $630 $1,013
=== =====
Basic earnings (losses) per share
attributable to
$1-2/3 par value common stock
Continuing operations $1.12 $-
Discontinued operations - $2.17
---- ----
Net income $1.12 $2.17
==== ====
Income from discontinued operations
attributable to Class H common stock $- $(0.18)
= ====
Earnings per share attributable to
$1-2/3 par value common stock
assuming dilution
Continuing operations $1.11 $-
Discontinued operations - $2.13
---- ----
Net income $1.11 $2.13
==== ====
Income (loss) from discontinued
operations attributable to Class H
common stock $- $(0.18)
= ====
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended December 31,
-------------------------------
2004 2003
---- ----
(dollars in millions)
AUTOMOTIVE AND OTHER OPERATIONS
Total net sales and revenues $43,103 $41,829
------- ------
Cost of sales and other expenses 40,168 39,192
Selling, general, and administrative
expense 3,484 3,468
------- -------
Total costs and expenses 43,652 42,660
Interest expense 700 688
Net expense from transactions with
Financing and Insurance Operations 69 82
------- --------
Income (loss) from continuing
operations before income
taxes and minority interests (1,318) (1,601)
Income tax (benefit) (1,248) (625)
Equity income and minority interests 91 298
-- ----
Income (loss) from continuing
operations 21 (678)
Income (loss) from discontinued
operations - (164)
Gain on sale of discontinued
operations - 1,179
-- -----
Net income - Automotive and Other
Operations $21 $337
== ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $8,241 $7,010
----- -----
Interest expense 2,639 1,972
Depreciation and amortization expense 1,409 1,323
Operating and other expenses 2,342 1,702
Provisions for financing and
insurance losses 1,129 1,030
----- -----
Total costs and expenses 7,519 6,027
Net income from transactions with
Automotive and Other Operations (69) (82)
----- -----
Income before income taxes and
minority interests 791 1,065
Income tax expense 178 296
Equity income (loss) and minority
interests (4) (93)
--- ---
Net income - Financing and Insurance
operations $609 $676
=== ===
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
--------------------------
2004 2003 2002
---- ---- ----
(dollars in millions except
per share amounts)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
Total net sales and revenues $193,452 $185,837 $177,867
------- ------- -------
Cost of sales and other expenses 158,587 152,435 147,192
Selling, general, and administrative
expenses 20,397 20,957 20,834
Interest expense 11,899 9,464 7,503
------- ------- -------
Total costs and expenses 190,883 182,856 175,529
------- ------- -------
Income from continuing
operations before
income taxes, equity
income and minority interests 2,569 2,981 2,338
Income tax (benefit) expense (420) 731 644
Equity income (loss) and minority interests 702 612 281
----- ----- -----
Income from continuing operations 3,691 2,862 1,975
Loss from discontinued operations - (219) (239)
Gain on sale of discontinued operations - 1,179 -
----- ----- -----
Net income 3,691 3,822 1,736
Dividends on preference stocks - - (46)
----- ----- -----
Earnings attributable to common stocks $3,691 $3,822 $1,690
===== ===== =====
Basic earnings (loss) per share
attributable to
common stocks
$1-2/3 par value
Continuing operations $6.54 $5.10 $3.53
Discontinued operations - $2.14 $(0.16)
---- ---- ----
Earnings per share attributable to
$1-2/3 par value $6.54 $7.24 $3.37
==== ==== ====
Losses per share from discontinued
operations attributable to
Class H $- $(0.22) $(0.21)
= ==== ====
Earnings (loss) per share attributable to
common stocks assuming dilution
$1-2/3 par value
Continuing operations $6.51 $5.03 $3.51
Discontinued operations - $2.11 $(0.16)
---- ---- ----
Earnings per share attributable to $1-2/3
par value $6.51 $7.14 $3.35
==== ==== ====
Losses per share from discontinued
operations attributable to
Class H $- $(0.22) $(0.21)
= ==== ====
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
------------------------
2004 2003 2002
---- ---- ----
(dollars in millions)
AUTOMOTIVE AND OTHER OPERATIONS
Total net sales and revenues $161,545 $155,831 $150,250
------- ------- -------
Cost of sales and other expenses 148,689 143,525 138,397
Selling, general, and administrative
expense 11,863 11,737 11,680
------- ------- -------
Total costs and expenses 160,552 155,262 150,077
Interest expense 2,480 1,780 479
Net expense from transactions with
Financing and Insurance Operations 273 297 327
--- --- ---
(Loss) from continuing operations
before income taxes, equity
income, and minority interests (1,760) (1,508) (633)
Income tax (benefit) (1,847) (869) (378)
Equity income (loss) and minority interests 710 674 348
--- --- ---
Income (loss) from continuing operations 797 35 93
(Loss) from discontinued operations - (219) (239)
Gain on sale of discontinued operations - 1,179 -
--- ----- ---
Net income (loss) - Automotive and Other
Operations $797 $995 $(146)
=== === ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $31,907 $30,006 $27,617
------ ------ ------
Interest expense 9,419 7,684 7,024
Depreciation and amortization expense 5,523 5,567 5,245
Operating and other expenses 8,594 8,604 8,519
Provisions for financing and insurance
losses 4,315 3,959 4,185
------ ------ ------
Total costs and expenses 27,851 25,814 24,973
------ ------ ------
Net income from transactions with
Automotive and Other Operations (273) (297) (327)
----- ----- -----
Income before income taxes, equity income
and minority interests 4,329 4,489 2,971
Income tax expense 1,427 1,600 1,022
Equity income (loss) and minority interests (8) (62) (67)
----- ----- -----
Net income - Financing and Insurance
Operations $2,894 $2,827 $1,882
===== ===== =====
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
-----------------
2004 2003
------ -----
ASSETS (dollars in millions)
Cash and cash equivalents $35,993 $32,554
Other marketable securities 21,737 22,215
------ ------
Total cash and marketable securities 57,730 54,769
Finance receivables - net 199,600 174,769
Loans held for sale 19,934 19,609
Accounts and notes receivable (less allowances) 21,236 20,532
Inventories (less allowances) 11,717 10,960
Deferred income taxes 25,804 27,190
Net equipment on operating leases
(less accumulated depreciation) 34,214 32,751
Equity in net assets of nonconsolidated affiliates 6,776 6,032
Property - net 39,020 38,211
Intangible assets - net 4,929 4,760
Other assets 58,165 58,924
------- -------
Total assets $479,125 $448,507
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable (principally trade) $28,830 $25,422
Notes and loans payable 301,188 271,756
Postretirement benefits other than pensions 28,111 36,292
Pensions 9,455 8,024
Deferred income taxes 7,119 7,508
Accrued expenses and other liabilities 75,413 73,930
------- -------
Total liabilities 450,116 422,932
Minority interests 397 307
Stockholders' equity
$1-2/3 par value common stock (outstanding,
565,132,021 and 561,997,725 shares) 942 937
Capital surplus (principally additional
paid-in capital) 15,241 15,185
Retained earnings 15,314 12,752
------ ------
Subtotal 31,497 28,874
Accumulated foreign currency translation adjustments (1,194) (1,815)
Net unrealized gains (losses) on derivatives 589 51
Net unrealized gains on securities 751 618
Minimum pension liability adjustment (3,031) (2,460)
----- -----
Accumulated other comprehensive loss (2,885) (3,606)
----- -----
Total stockholders' equity 28,612 25,268
------- -------
Total liabilities and stockholders' equity $479,125 $448,507
======= =======
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
December 31,
----------------
GENERAL MOTORS CORPORATION AND SUBSIDIARIES 2004 2003
---- ----
ASSETS (dollars in millions)
Automotive and Other Operations
Cash and cash equivalents $13,148 $14,424
Marketable securities 6,655 9,067
------ ------
Total cash and marketable securities 19,803 23,491
Accounts and notes receivable (less allowances) 6,713 5,380
Inventories (less allowances) 11,717 10,960
Net equipment on operating leases
(less accumulated depreciation) 6,488 7,173
Deferred income taxes and other current assets 10,794 10,851
------ ------
Total current assets 55,515 57,855
Equity in net assets of nonconsolidated affiliates 6,776 6,032
Property - net (Note 12) 37,170 36,071
Intangible assets - net 1,603 1,479
Deferred income taxes 16,921 18,086
Other assets 40,840 42,262
------- -------
Total Automotive and Other Operations assets 158,825 161,785
Financing and Insurance Operations
Cash and cash equivalents 22,845 18,130
Investments in securities 15,082 13,148
Finance receivables - net 199,600 174,769
Loans held for sale 19,934 19,609
Net equipment on operating leases
(less accumulated depreciation) 27,726 25,578
Other assets 35,113 35,488
Net receivable from Automotive and Other Operations 2,426 1,492
------- -------
Total Financing and Insurance Operations assets 322,726 288,214
------- -------
Total assets $481,551 $449,999
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive and Other Operations
Accounts payable (principally trade) $24,257 $21,542
Loans payable 2,062 2,813
Accrued expenses 44,783 45,417
Net payable to Financing and Insurance Operations 2,426 1,492
------- -------
Total current liabilities 73,528 71,264
Long-term debt 30,460 29,593
Postretirement benefits other than pensions 23,406 32,285
Pensions 9,371 7,952
Other liabilities and deferred income taxes 15,657 15,567
------- -------
Total Automotive and Other Operations liabilities 152,422 156,661
Financing and Insurance Operations
Accounts payable 4,573 3,880
Debt 268,666 239,350
Other liabilities and deferred income taxes 26,881 24,533
------- --------
Total Financing and Insurance Operations liabilities 300,120 267,763
------- -------
Total liabilities 452,542 424,424
Minority interests 397 307
Total stockholders' equity 28,612 25,268
------- -------
Total liabilities and stockholders' equity $481,551 $449,999
======= =======
SOURCE General Motors Corporation
-0- 01/19/2005 P
/NOTE TO EDITORS: For additional media information, visit
http://media.gm.com ./
/CONTACT: Jerry Dubrowski, +1-212-418-6261, jerry.dubrowski@gm.com or
Mark Tanner, +1-313-665-3146, mark.tanner@gm.com , both of General Motors
Corporation/
/Web site: http://media.gm.com
http://www.gm.com /
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