GM Reports Record $9.7 Billion Net Income in 2015

[FenwickHockey65]

GM Reports Record Net Income of $9.7 Billion and Record EBIT-Adjusted of $10.8 Billion for 2015
General Motors

February 3, 2016

• Full-year 2015 EPS of $5.91; EPS-adjusted of $5.02, up 65 percent from 2014
• Fourth quarter EPS of $3.92; EPS-adjusted of $1.39, up 17 percent from 2014
• Fourth quarter net income of $6.3 billion; record EBIT-adjusted of $2.8 billion
• Returned $5.7 billion to shareholders in 2015

DETROIT – General Motors Co. (NYSE: GM) today announced record 2015 calendar-year net income attributable to common stockholders of $9.7 billion, or $5.91 per diluted share, up from $2.8 billion, or $1.65 per diluted share in 2014. Earnings per share (EPS) adjusted for special items was $5.02, up 65 percent compared to $3.05 in 2014.
Full-year earnings before interest and tax (EBIT) adjusted rose to a record $10.8 billion, up from $6.5 billion in 2014. EBIT adjusted margin for the year also increased, to a record 7.1 percent, compared to 4.2 percent in 2014.

“It was a strong year on many fronts, capped with record sales and earnings, and a substantial return of capital to our shareholders,” said Chairman and CEO Mary Barra. “We continue to strengthen our core business, which is laying the foundation for the company to lead in the transformation of personal mobility. We believe the opportunities this will create in connectivity, autonomous, car-sharing and electrification will set the stage for driving value for our owners for years to come.”

Special items during the calendar year impacted full-year net income to common stockholders favorably, $1.5 billion, or $0.89 per share, compared to an unfavorable $(2.4) billion impact in 2014, or $(1.40) per share. Among these special items were a net gain from the reversal of certain valuation allowances on deferred tax assets, and charges for litigation matters related to the ignition switch recall and a Venezuelan bolivar currency devaluation.

Total net revenue for the year was $152.4 billion, compared to $155.9 billion in 2014. The change in net revenue is due primarily to a negative net foreign currency exchange impact of $9.3 billion. Holding exchange rates constant, net revenue in 2015 was $5.8 billion higher than 2014.

Based on its strong operating performance in 2015 and consistent with the outlook provided in January, the company reaffirms its expectation that its EPS-adjusted will be between $5.25 and $5.75 in 2016.

Fourth Quarter Results

GM’s fourth quarter 2015 net income attributable to common stockholders was $6.3 billion, or $3.92 per diluted share, up from $1.1 billion, or $0.66 per diluted share during the fourth quarter of 2014. Earnings per share adjusted for special items during the fourth quarter was $1.39, up 17 percent compared to $1.19 per share for the fourth quarter of 2014.

EBIT-adjusted was a record $2.8 billion and EBIT-adjusted margin was 7.0 percent in the fourth quarter of 2015, compared to EBIT-adjusted of $2.4 billion and EBIT-adjusted margin of 6.1 percent in the fourth quarter of 2014.

“The fourth quarter closed another very strong year of operating performance,” said Chuck Stevens, executive vice president and CFO. “We plan to improve our results in 2016, driven by a significant vehicle launch cadence, continued emphasis on growing our adjacent businesses and an unrelenting focus on driving efficiencies into our core operations.”

Special items during the fourth quarter of 2015 impacted net income to common stockholders favorably, $4.0 billion, or $2.53 per share, compared to an unfavorable $(0.9) billion impact in 2014, or $(0.53) per share. These special items included a $3.9 billion net non-cash benefit related to the release of the company’s valuation allowances on certain GM Europe deferred tax assets.

Total net revenue in the fourth quarter of 2015 was $39.6 billion, approximately equal to the fourth quarter of 2014. Holding exchange rates constant, net revenue during the fourth quarter was $2.4 billion higher than the fourth quarter of 2014.

Segment Results

• GM North America (GMNA) reported EBIT-adjusted of $2.8 billion in the fourth quarter of 2015 compared to $2.2 billion in 2014. Full-year EBIT-adjusted of $11.0 billion and EBIT-adjusted margin of 10.3 percent were both records, and compared to EBIT-adjusted of $6.6 billion and EBIT-adjusted margin of 6.5 percent in 2014. Based on GMNA’s 2015 financial performance, the company will pay profit sharing of up to $11,000 to approximately 49,600 eligible GM U.S. hourly employees.
• GM Europe (GME) reported EBIT-adjusted of $(0.3) billion in the fourth quarter of 2015, compared to $(0.4) billion in 2014. Full-year EBIT-adjusted was $(0.8) billion in 2015, compared to $(1.4) billion in 2014.
• GM International Operations (GMIO) reported EBIT-adjusted of $0.4 billion in the fourth quarter of 2015 compared to $0.4 billion in 2014. Full-year EBIT-adjusted was $1.4 billion in 2015 compared to $1.2 billion in 2014. Results included China equity income of $0.6 billion in the fourth quarter and
  $2.1 billion for the full year.
• GM South America (GMSA) reported approximately break-even results in the fourth quarter of 2015, compared to EBIT-adjusted of $0.1 billion in 2014. Full-year EBIT-adjusted was $(0.6) billion in 2015 compared to EBIT-adjusted of $(0.2) billion in 2014.
• GM Financial reported earnings before taxes (EBT) of $0.2 billion in the fourth quarter of 2015, compared to $0.1 billion in 2014. Full-year EBT was $0.8 billion, compared to $0.8 billion in 2014.

Cash Flow and Liquidity

For the fourth quarter of 2015, automotive cash flow from operating activities was $2.2 billion, compared to $3.8 billion in 2014. In the fourth quarter of 2015, adjusted automotive free cash flow was $(0.3) billion, compared to $1.8 billion in 2014. For the year, adjusted automotive free cash flow was $2.2 billion, compared to $3.1 billion a year ago.

GM ended 2015 with total automotive liquidity of $32.5 billion compared to $37.2 billion at year-end in 2014. Automotive cash and marketable securities was $20.3 billion at the end of 2015, compared to $25.2 billion a year earlier.

In 2015 GM returned approximately $5.7 billion to shareholders, including $2.2 billion in common stock dividends and $3.5 billion through the GM common stock repurchase program.

[FenwickHockey65]

Soo now that all this cash is available...Colorado ZR2? Cruze SS? Production Avista Concept? Off-road capable GMC SUV? Cadillac sports car?

[RaceFuel]

Originally Posted by FenwickHockey65

Soo now that all this cash is available...Colorado ZR2? Cruze SS? Production Avista Concept? Off-road capable GMC SUV? Cadillac sports car?

I was thinking that since Ford is stepping further into the hot hatchback market with the Focus ST and RS that Chevy could capitalize with a performance FWD and AWD Cruze. Maybe make the Cruze RS truly a moderate performance car with the SS being an AWD Focus RS/STI/Golf R fighter?

There is a void in the market now that the Evo is going and soon to be gone that the Cruze could fill.

What would a Colorado ZR2 go up against? the TRD Tacoma? Ford and Ram don't have a comparable segment member.

[FenwickHockey65]

When Ranger returns to the US, there will probably be a Raptor-like model.

[DGthe3]

Originally Posted by FenwickHockey65

Soo now that all this cash is available...Colorado ZR2? Cruze SS? Production Avista Concept? Off-road capable GMC SUV? Cadillac sports car?

I've heard that a Wrangler competitor is on the way ... and it might even wear a Hummer badge. As I understand it, Hummer would be a GMC sub-brand but I don't know how they plan on implementing that. It might be similar to what was done (briefly) with SRT over at Chrysler a little while back: have 1 flagship product, then a handful of others that are 'enhanced' versions of regular vehicles.

[RaceFuel]

Originally Posted by FenwickHockey65

When Ranger returns to the US, there will probably be a Raptor-like model.

Oh yes that's right, I had forgotten they're supposed to be bringing the Ranger back. Didn't the UAW contracts also say a return of the Bronco in 2020 or something like that?

[Ragnar]

Should be bigger in 2016, like 9.78 Billion, with the Camaro getting a complete lineup. Assuming 2017 models brings out some additional models, (1LESS, Z28, Zl1, 50th Anniversary model), makes more pie...

[ssrs2lt]

Yeah not hearing the govt motors comments..need keep improving

[GoldCartridgeGamer]

Cruze SS? No. Find a different name. The name SS should be reserved for true V8 performance cars. Perhaps make the RS a true performance package for the Cruze.

I am ready for the Colorado ZR2. The Diesel version is already exciting.

I am ready for a Ford Raptor competitor. Dodge did a terrible job trying to compete. I think GM has a better shot.

I really do hope Buick make a production version of the Avista Concept. That is one gorgeous car. Or revive the Riviera.

[Denis]

Originally Posted by FenwickHockey65

Soo now that all this cash is available...Colorado ZR2? Cruze SS? Production Avista Concept? Off-road capable GMC SUV? Cadillac sports car?

all of that needs to happen!

Originally Posted by Lgndryhr

Cruze SS? No. Find a different name. The name SS should be reserved for true V8 performance cars. Perhaps make the RS a true performance package for the Cruze.

didn't that happen a while back? They were just slapping SS badges on everything? Like I saw a Malibu Maxx SS the other day. really? A Malibu Maxx SS? the SS badging got a little out of hand for a while there. Im not even a fan of the SS just being called the SS. They need to remember that the SS badge got thrown around a lot and lost its meaning.

[Angrybird 12]

Originally Posted by Denis

all of that needs to happen!



didn't that happen a while back? They were just slapping SS badges on everything? Like I saw a Malibu Maxx SS the other day. really? A Malibu Maxx SS? the SS badging got a little out of hand for a while there. Im not even a fan of the SS just being called the SS. They need to remember that the SS badge got thrown around a lot and lost its meaning.

Guess you don't know that in the 60's the SS package was more of an appearance package, it later evolved into a performance package. So there is a history of SS being used on non-performance versions.

[FenwickHockey65]

There's no reason a Cruze SS, or even a Sonic SS, shouldn't happen.

Cobalt SS was a decent performer in its day.

[TheReaper]

Originally Posted by Angrybird 12

Guess you don't know that in the 60's the SS package was more of an appearance package, it later evolved into a performance package. So there is a history of SS being used on non-performance versions.

I was around in the 60's and I don't remember anything with SS on it not
being a performance model.

[CRF8]

Maybe GM could start to reimburse small investors that lost money because they had a GM bond or stock during the bankruptcy. My dad lost 15, 000.