GM
$37.56
General Motors
$1.50
4.16%
Earnings Details
2nd Quarter June 2022
Tuesday, July 26, 2022 6:00:00 AM
Tweet Share Watch
Summary

General Motors Misses

General Motors (GM) reported 2nd Quarter June 2022 earnings of $1.14 per share on revenue of $35.8 billion. The consensus earnings estimate was $1.39 per share on revenue of $37.2 billion. The Earnings Whisper number was $1.26 per share. Revenue grew 4.7% on a year-over-year basis.

The company said it continues to expect 2022 earnings of $6.50 to $7.50 per share. The current consensus earnings estimate is $6.81 per share for the year ending December 31, 2022.

General Motors Company designs, builds and sells cars, trucks and automobile parts. The Company also provides automotive financing services through General Motors Financial Company, Inc.

Results
Reported Earnings
$1.14
Earnings Whisper
$1.26
Consensus Estimate
$1.39
Reported Revenue
$35.76 Bil
Revenue Estimate
$37.16 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

GM Reports Second-Quarter 2022 Results

DETROIT, July 26, 2022 /PRNewswire/ -- General Motors Co. (NYSE: GM) today reported second-quarter net income attributable to stockholders of $1.7 billion and EBIT-adjusted of $2.3 billion, in line with the earnings update the company issued on July 1. GM continues to expect to meet its full-year earnings guidance.

Downloads

Results Overview


Three Months Ended


($M) except where noted

June 30, 2022 

June 30, 2021 

Change

Revenue

$    35,759

$    34,167

$      1,592

Net income attributable to stockholders

$      1,692

$      2,836

$     (1,144)

EBIT-adjusted

$      2,343

$      4,117

$     (1,774)

Net income margin

4.7 %

8.3 %

(3.6) ppts

EBIT-adjusted margin

6.6 %

12.0 %

(5.4) ppts

Automotive operating cash flow

$      3,469

$      4,007

$        (538)

Adjusted automotive free cash flow

$      1,407

$      2,478

$     (1,071)

EPS-diluted(a)

$        1.14

$        1.90

$       (0.76)

EPS-diluted-adjusted(a)

$        1.14

$        1.97

$       (0.83)

GMNA EBIT-adjusted

$      2,299

$      2,894

$        (595)

GMNA EBIT-adjusted margin

8.0 %

10.4 %

(2.4) ppts

GMI EBIT-adjusted

$         209

$           15

$         194

China equity income

$          (87)

$         276

$        (363)

GM Financial EBT-adjusted

$      1,106

$      1,581

$        (475)

__________

(a)

EPS-diluted and EPS-diluted-adjusted include a $(0.05) and $0.12 impact from
revaluation on equity investments in the three months ended June 30, 2022 and 2021.

 


Six Months Ended


($M) except where noted

June 30, 2022

June 30, 2021

Change

Revenue

$    71,738

$     66,641

$       5,097

Net income attributable to stockholders

$      4,631

$       5,858

$      (1,227)

EBIT-adjusted

$      6,387

$       8,534

$      (2,147)

Net income margin

6.5 %

8.8 %

(2.3) ppts

EBIT-adjusted margin

8.9 %

12.8 %

(3.9) ppts

Automotive operating cash flow

$      5,104

$       2,911

$       2,193

Adjusted automotive free cash flow

$      1,413

$          546

$          867

EPS-diluted(a)

$        2.49

$         3.93

$        (1.44)

EPS-diluted-adjusted(a)

$        3.23

$         4.21

$        (0.98)

GMNA EBIT-adjusted

$      5,440

$       6,028

$         (588)

GMNA EBIT-adjusted margin

9.3 %

11.2 %

(1.9) ppts

GMI EBIT-adjusted

$         537

$          323

$         214

China equity income

$         147

$          584

$        (437)

GM Financial EBT-adjusted

$      2,390

$       2,763

$        (373)

__________

(a)

EPS-diluted and EPS-diluted-adjusted include a $(0.16) and $0.20 impact from
revaluation on equity investments in the six months ended June 30, 2022 and 2021.

2022 Guidance

  • Full-year net income of between $9.6 billion and $11.2 billion, and EBIT-adjusted of between $13.0 billion and $15.0 billion
  • Full-year EPS-diluted of between $5.76 and $6.76, and EPS-diluted-adjusted of between $6.50 and $7.50
  • Full-year net automotive cash provided by operating activities guidance range of between $16.0 billion and $19.0 billion, and adjusted automotive free cash flow guidance range of between $7.0 billion and $9.0 billion

See below for reconciliations of non-GAAP measures to their most directly comparable GAAP measures or visit the GM Investor Relations website for complete details.

Conference Call for Investors and Analysts
Mary Barra and Chief Financial Officer Paul Jacobson will host a conference call for investors and analysts at 8:30 a.m. ET today to discuss these results and the company's growth strategy. Introductory remarks will be followed by a question-and-answer session.

Those who wish to listen to the call may dial in using the following numbers:

  • United States: 1-800-857-9821
  • International: +1-517-308-9481
  • Conference call passcode: General Motors

General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, CadillacBaojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com

Cautionary Note on Forward-Looking Statements: This press release and related comments by management may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgment about possible future events and are often identified by words such as "anticipate," "appears," "approximately," "believe," "continue," "could," "designed," "effect," "estimate," "evaluate," "expect," "forecast," "goal," "initiative," "intend," "may," "objective," "outlook," "plan," "potential," "priorities," "project," "pursue," "seek," "should," "target," "when," "will," "would," or the negative of any of those words or similar expressions. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law.

Non-GAAP Reconciliations

The following table reconciles Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted (dollars in millions):


Three Months Ended

Six Months Ended


June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Net income (loss) attributable to stockholders(a)

$        1,692

$        2,836

$        4,631

$        5,858

Income tax expense (benefit)

490

971

462

2,148

Automotive interest expense

234

243

460

493

Automotive interest income

(73)

(32)

(123)

(64)

Adjustments





Cruise compensation modifications(b)

1,057

Patent royalty matters(c)

(100)

Cadillac dealer strategy(d)

17

17

GM Korea wage litigation(e)

82

82

Total adjustments

99

957

99

EBIT (loss)-adjusted

$       2,343

$        4,117

$        6,387

$       8,534

__________

(a)

Net of net loss attributable to noncontrolling interests.

(b)

This adjustment was excluded because it relates to the one-time modification of Cruise stock incentive awards.

(c)

This adjustment was excluded because it relates to the resolution, in the three months ended March 31, 2022,
of substantially all matters related to certain royalties accrued with respect to past-year vehicle sales.

(d)

This adjustment was excluded because it relates to strategic activities to transition certain Cadillac dealers from
the network as part of Cadillac's electric vehicle strategy.

(e)

This adjustment was excluded because of the unique events associated with Supreme Court of Korea decisions
related to our salaried workers.

The following table reconciles diluted earnings (loss) per common share under U.S. GAAP to EPS-diluted-adjusted (dollars in millions, except per share amounts):


Three Months Ended

Six Months Ended


June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021


Amount

Per Share

Amount

Per Share

Amount

Per Share

Amount

Per Share

Diluted earnings per common share

$  1,666

$   1.14

$ 2,790

$   1.90

$ 3,653

$  2.49

$ 5,767

$  3.93

Adjustments(a)

99

0.07

957

0.65

99

0.06

Tax effect on adjustments(b)

(4)

(296)

(0.20)

(4)

Tax adjustments(c)

(482)

(0.33)

316

0.22

Deemed dividend adjustment(d)

909

0.62

EPS-diluted-adjusted

$  1,666

$   1.14

$ 2,885

$   1.97

$  4,741

$  3.23

$  6,178

$   4.21

__________

(a)

Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT (loss)-adjusted for
adjustment details.

(b)

The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction
to which the adjustment relates.

(c)

These adjustments consist of tax benefit related to the release of a valuation allowance against deferred tax assets that
are considered realizable as a result of Cruise tax reconsolidation in the six months ended June 30, 2022, and tax expense
related to the establishment of a valuation allowance against deferred tax assets that were considered no longer realizable
for Cruise in the six months ended June 30, 2021. These adjustments were excluded because significant impacts of valuation
allowances are not considered part of our core operations.

(d)

This adjustment consists of a deemed dividend related to the redemption of Cruise preferred shares from SoftBank in the six
months ended June 30, 2022.

The following table reconciles net automotive cash provided by (used in) operating activities under U.S. GAAP to adjusted automotive free cash flow (dollars in millions):


Three Months Ended

Six Months Ended


June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Net automotive cash provided by (used in) operating activities

$       3,469

$       4,007

$        5,104

$        2,911

Less: Capital expenditures

(2,073)

(1,546)

(3,717)

(2,406)

Add: GMI restructuring

24

Add: Cadillac dealer strategy

17

17

Add: GM Korea wage litigation

10

26

Adjusted automotive free cash flow

$        1,407

$        2,478

$        1,413

$         546

Guidance Reconciliations

The following table reconciles expected Net income (loss) attributable to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars in billions):


Year Ending
December 31, 2022

Net income attributable to stockholders

$                                         9.6-11.2

Income tax expense

1.6-2.0

Automotive interest expense, net

0.8

Adjustments(a)

1.0

EBIT-adjusted(b)

$                                       13.0-15.0

__________

(a)

Refer to the reconciliation of Net income (loss) attributable to stockholders
under U.S. GAAP to EBIT (loss)-adjusted for adjustment details.

(b)

We do not consider the potential future impact of adjustments on our
expected financial results.

The following table reconciles expected EPS-diluted under U.S. GAAP to expected EPS-diluted-adjusted:


Year Ending
December 31, 2022

Diluted earnings per common share

$                                        5.76-6.76

Adjustments(a)

0.74

EPS-diluted-adjusted(b)

$                                        6.50-7.50

__________

(a)

Refer to the reconciliation of diluted earnings (loss) per common share
under U.S. GAAP to EPS-diluted-adjusted for adjustment details.

(b)

We do not consider the potential future impact of adjustments on our
expected financial results.

The following table reconciles expected automotive net cash provided by operating activities under U.S. GAAP to adjusted automotive free cash flow (dollars in billions):


Year Ending
December 31, 2022

Net automotive cash provided by operating activities

$                                        16.0-19.0

Less: Capital expenditures

9.0-10.0

Adjusted automotive free cash flow

$                                            7.0-9.0

 

Cision View original content:https://www.prnewswire.com/news-releases/gm-reports-second-quarter-2022-results-301592979.html

SOURCE General Motors Co.