DETROIT — General Motors Co. (NYSE: GM) today announced second-quarter 2018 results reflecting profitability in all core operating segments and the second consecutive quarter of records for China and GM Financial. Results included the unfavorable impact of rising commodity costs, and foreign currency devaluations in South America.
Second-quarter 2018 results:
- EPS-diluted of $1.66 and EPS diluted-adjusted of $1.81
- Revenue of $36.8 billion
- GM North America EBIT-adjusted of $2.7 billion and margin of 9.4 percent
- GM International EBIT-adjusted of $0.1 billion, includes record equity income in China of $0.6 billion, partially offset by unfavorable foreign exchange impact in South America
- GM Cruise EBIT-adjusted of $(0.2) billion, on plan and reflecting continued spending on autonomous as the company moves to commercialization
- GM Financial EBT-adjusted of $0.5 billion, another record, as earning assets grew 12 percent to $90.4 billion, supporting expected long-term earnings growth
Recent and significant increases in commodity costs and unfavorable foreign exchange impact of the Argentine peso and Brazilian real have negatively affected business expectations. The company expects these headwinds to continue through 2018 and has revised its full-year outlook to the following:
- EPS diluted of approximately $5.14
- EPS diluted-adjusted of approximately $6
- Auto Operating Cash Flow to approximately $11.5 billion
- Adjusted Auto Free Cash Flow to approximately $4 billion
For complete details and to see reconciliations of non-GAAP measures to their most directly comparable GAAP measures, click here to download the full press release, or visit the GM Investor Relations website.
Investor analyst conference call
GM Chairman and CEO Mary Barra and Executive Vice President and CFO Chuck Stevens will host a conference call for investor analysts at 10 a.m. EDT today to discuss second-quarter business results. The call will include introductory remarks followed by a question and answer session for analysts.
Journalists who wish to listen to the call may dial in using the following numbers:
United States: 1-888-808-8618
Name of Call: GM Earnings Call
General Motors (NYSE:GM) is committed to delivering safer, better and more sustainable ways for people to get around. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Cadillac, Chevrolet, Baojun, Buick, GMC, Holden, Jiefang and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, Maven, its personal mobility brand, and Cruise, its autonomous vehicle ride-sharing company, can be found at https://www.gm.com.
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This presentation and related comments by management may include forward-looking statements. These statements are based on current expectations about possible future events and thus are inherently uncertain. Our actual results may differ materially from forward-looking statements due to a variety of factors, including: (1) our ability to deliver new products, services and experiences that attract new, and are desired by existing, customers and to effectively compete in autonomous, ride-sharing and transportation as a service; (2) sales of crossovers, SUVs and full-size pickup trucks; (3) our ability to reduce the costs associated with the manufacture and sale of electric vehicles; (4) the volatility of global sales and operations; (5) our significant business in China which subjects us to unique operational, competitive and regulatory risks; (6) our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (7) changes in government leadership and laws (including tax laws and regulations), economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates, economic downturns in foreign countries, differing local product preferences and product requirements, compliance with U.S. and foreign countries' export controls and economic sanctions, differing labor laws and regulations and difficulties in obtaining financing in foreign countries; (8) our dependence on our manufacturing facilities; (9) the ability of suppliers to deliver parts, systems and components without disruption and on schedule; (10) prices of raw materials; (11) our highly competitive industry; (12) the possibility that competitors may independently develop products and services similar to ours despite our intellectual property rights; (13) security breaches and other disruptions to our vehicles, information technology networks and systems; (14) compliance with laws and regulations applicable to our industry, including those regarding fuel economy and emissions; (15) costs and risks associated with litigation and government investigations; (16) compliance with the terms of the Deferred Prosecution Agreement; (17) the cost and effect on our reputation of product safety recalls and alleged defects in products and services; (18) our ability to successfully and cost-efficiently restructure operations in various countries, including Korea, with minimal disruption to our supply chain and operations, globally; (19) our ability to realize production efficiencies and to achieve reductions in costs; (20) our ability to develop captive financing capability through GM Financial; and (21) significant increases in pension expense or projected pension contributions. A further list and description of these risks, uncertainties and other factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and our subsequent filings with the U.S. Securities and Exchange Commission. GM cautions readers not to place undue reliance on forward-looking statements. GM undertakes no obligation to update publicly or otherwise revise any forward-looking statements.