UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
===============================================================================
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) July 21, 2004
GENERAL MOTORS CORPORATION
--------------------------
(Exact Name of Registrant as Specified in its Charter)
STATE OF DELAWARE 38-0572515
----------------- ----------
(State or other jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
300 Renaissance Center, Detroit, Michigan 48265-3000
----------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (313) 556-5000
--------------
ITEM 12. Disclosure of information on financial conditions
On July 21, 2004, a news release was issued on the subject of second
quarter consolidated earnings for General Motors Corporation (GM). The news
release did not include certain financial statements, related footnotes and
certain other financial information that will be filed with the Securities and
Exchange Commission as part of GM's Quarterly Report on Form 10-Q. The following
is the second quarter earnings release for GM.
GM Earns $1.3 Billion or $2.36 Per Share in Second Quarter 2004
GMAC posts record quarterly earnings, driven by financing and insurance
Automotive earnings increase to $529 million
Calendar year earnings forecast of $7.00 per share remains unchanged
DETROIT - General Motors Corp. (NYSE: GM) today reported earnings from
continuing operations of $1.3 billion, or $2.36 per diluted share, in the second
quarter of 2004. These results compare with earnings of $879 million, or $1.57
per share, in the second quarter of 2003. Revenue rose 7.1 percent to $49.1
billion.
"Overall, our financial results for the quarter were reasonably good," said GM
Chairman and Chief Executive Officer Rick Wagoner. "General Motors Acceptance
Corp. once again had an outstanding quarter, setting another record, and our
automotive operations reported improved earnings as well. But competition in the
global automotive market remains very intense, and we still have much work to do
to improve our automotive profitability to targeted levels."
GM financial results described throughout the remainder of this release exclude
special items and discontinued operations unless otherwise noted. See Highlights
for reconciliation of adjusted results to results based on Generally Accepted
Accounting Principles (GAAP).
GMAC
GMAC earned a record $860 million in the second quarter of 2004, up from $834
million in the year-ago period.
"We're very pleased with GMAC's record-breaking performance," Wagoner said.
"GMAC continues to do an outstanding job managing its global portfolio of
businesses. Its auto-financing business, in addition to supporting GM sales, is
turning in strong profitability around the globe. Insurance earnings are
strengthening, and mortgage earnings, while understandably lower, still remain
solid."
Earnings from GMAC's financing operations rose 14 percent to $452 million in the
second quarter, up from $396 million a year ago, as lower credit losses and
improved lease-residual values more than offset narrower net-interest margins.
Second-quarter earnings at the insurance group were $75 million, a significant
improvement from earnings of $23 million a year ago, reflecting continued growth
in underwriting income and improved performance in the investment portfolio in
2004.
Earnings from the mortgage unit totaled $333 million, compared with record
year-ago earnings of $415 million. As expected, lower mortgage volume and
decreased pricing margins were somewhat offset by higher asset levels. Despite
the decline in second-quarter earnings, GMAC's mortgage unit continues to be a
significant contributor to GMAC's overall performance.
2
GM Automotive Operations
GM's global-automotive earnings totaled $529 million in the second quarter of
2004, up from $140 million in the prior-year period, reflecting improved
earnings in North America, Asia Pacific, and the Latin America/Africa/Mid-East
region, partially offset by increased losses in Europe. In the second quarter,
GM's market share was up in three out of four regions of the world; global share
totaled 14.7 percent, down from 14.9 percent in the year-ago period. For the six
months ended June 30, 2004, GM's market share was also up in three out of four
regions, and totaled 14.1 percent, compared with 14.2 percent in the year-ago
period.
GM North America (GMNA) earned $328 million in the second quarter of 2004,
compared with earnings of $83 million in the second quarter of 2003.
Improvements in material costs and pricing more than offset less-favorable mix
and higher recall costs. GM's market share in North America was 26.2 percent in
the second quarter of 2004, compared with 27.2 percent in the year-earlier
period. For the six months ended June 30, 2004, GM's market share in North
America was 26.3 percent, versus 26.7 percent in the year-ago period.
"While earnings at GM North America improved, overall sales, market share and
financial results were well below our expectations. For sure, the competition is
tough, but we also must move faster to implement our strategy -- introducing
great cars and trucks, reducing costs, improving quality, and generating cash,"
Wagoner said. "There were some bright spots in the quarter, such as our strong
performance in recent quality and productivity surveys, and the market reception
of new vehicles, like the Chevrolet Equinox and the Cadillac SRX."
GM's quality and productivity gains were recognized during the second quarter by
two major independent surveys. According to the 2004 J.D. Power and Associates
Initial Quality Study, GM recorded a 10-percent improvement in initial quality
overall, with Cadillac emerging as the top luxury-car brand. GM also continued
its steady improvement in manufacturing productivity. In the recently released
Harbour Report North America 2004, GM posted a 5.2-percent improvement in North
American manufacturing productivity in 2003, bringing GM's overall improvement
over the last six years to more than 24 percent.
"We've had a decade-long focus on improving our quality and manufacturing
productivity, and with the great work of our employees and labor unions, we're
now reaching industry-leading performance in many categories and plants,"
Wagoner said. "That's something we're proud of, but the fact is that we've still
got more to do in this area in order to offset our high-cost manufacturing
footprint and the huge burden of legacy costs that we carry."
GM Europe (GME) reported a loss of $45 million in the second quarter of 2004
compared with a loss of $3 million in the year-ago quarter. The most recent
quarter's results reflect intense price competition, foreign-exchange losses and
continuing restructuring costs for GM's share of the GM-Fiat powertrain joint
venture, partially offset by continuing cost improvements. GM's market share in
Europe rose to 9.8 percent in the second quarter of 2004 from 9.4 percent in the
year-ago period. For the six months ended June 30, 2004, GM's market share in
Europe was 9.6 percent, up from 9.5 percent in the year ago period.
"Our European operations are making significant progress in reducing costs and
improving quality," Wagoner said. "However, despite growing market share, we're
not getting the revenue growth that we had hoped for, particularly in the
traditionally large western European markets. So, that means we have to pick up
the pace in new-model introductions, while we simultaneously reduce costs.
That's a tough assignment, and it's going to require GME to do a better job of
leveraging our global resources to bring new products to market faster and at
lower cost."
3
GM Asia Pacific (GMAP) earned $236 million in the second quarter of 2004, up
from $163 million in the year-ago quarter. Continued strong performance by
Shanghai GM in China, improved earnings in India and Thailand, and smaller
losses at GM-Daewoo Auto & Technology Co. (GMDAT) contributed to GMAP's overall
performance. GM's market share in the Asia Pacific region rose to 5.4 percent in
the second quarter from 4.8 percent a year ago, led by gains in China and India.
Through the first six months of 2004, GM's market share in the Asia Pacific
region was 5.0 percent, up from 4.6 percent in the comparable period a year ago.
"GMAP registered another great quarter, growing sales, market share and
profitability," Wagoner said. "For example, in the first six months of 2004, GM
sales in China rose 58 percent and GM continued to gain share in Thailand and
India. We expect continued strong growth in Asia, and we plan to stay aggressive
and capitalize on our momentum."
Wagoner also pointed out recently announced plans to invest $3 billion in China
over the next three years with GM's joint-venture partners. "This investment
will further strengthen GM's already solid position in China by expanding our
capacity and broadening GM's product portfolio with the introduction of the
Cadillac brand."
GM Latin America/Africa/Mid-East (GMLAAM) earned $10 million in the second
quarter of 2004, a significant improvement from the year-ago loss of $103
million. This year's results reflect higher production volumes and improved
earnings in Venezuela and South Africa. GM's market share in the GMLAAM region
rose to 17.4 percent in the second quarter of 2004 from 15.6 percent a year ago.
For the six months ended June 30, 2004, GM's market share in the LAAM region was
17 percent, up from 15.6 percent in the year-ago period.
"We're pleased with the improving performance of GMLAAM," Wagoner said. "Our
market share continues to be impressive and we reported a profit for the second
consecutive quarter."
Cash and Liquidity
GM generated approximately $1.2 billion in automotive cash in the second quarter
of 2004. For the six months ended June 30, 2004, total automotive cash generated
by GM stood at $2.6 billion. Cash, marketable securities, and short-term assets
of the Voluntary Employees' Beneficiary Association (VEBA) trust totaled $25
billion at June 30, 2004, excluding financing and insurance operations, compared
with $23.5 billion on March 31, 2004.
Looking Ahead
GM expects total U.S. industry sales of approximately 17.2 million vehicles in
calendar year 2004, reflecting strengthening labor markets and increases in
household income. Through the first six months of 2004, industry sales came in
at an annualized rate of around 16.9 million units.
For the third quarter of 2004, GM expects to earn approximately $0.75 to $1.00
per share, excluding special items and at current dilution levels. GM's
2004-calendar-year earnings estimate remains unchanged at approximately $7.00
per share, excluding special items and at current dilution levels.
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.
# # #
4
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
(unaudited)
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
June 30, 2004 June 30, 2004
----------------- -------------
Net Net
Income EPS Income EPS
------ ----- ------ -----
REPORTED
--------
Net income $1,341 $2.36 $2,621 $4.61
===== ==== ===== ====
There were no special items in the Second Quarter of 2004.
5
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
(unaudited)
Three Months Ended Year to Date
June 30, 2003 June 30, 2003
----------------- -------------
Net Net
Income EPS Income EPS
------ ----- ------ -----
REPORTED
--------
Income from continuing
operations $879 $1.57 $2,416 $4.30
Income(loss)from discontinued
operations 22 0.01 (32) (0.01)
--- ---- ----- ----
Net income 901 1.58 2,384 4.29
ADJUSTMENTS
-----------
Gain on Sale of GM Defense (A) - - (505) (0.90)
--- ---- --- ----
Subtotal - - (505) (0.90)
ADJUSTED
--------
Income from continuing
operations $879 $1.57 $1,911 $3.40
Income(loss)from discontinued
operations 22 0.01 (32) (0.01)
--- ---- ----- ----
Adjusted Income $901 $1.58 $1,879 $3.39
=== ==== ===== ====
(A) 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.
6
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and
revenues $49,148 $45,881 $96,833 $92,932
Adjusted $49,148 $45,881 $96,833 $92,118
Income from continuing
operations $1,341 $879 $2,621 $2,416
Adjusted $1,341 $879 $2,621 $1,911
Income (loss) from
discontinued operations - 22 - (32)
Adjusted - 22 - (32)
Net income $1,341 $901 $2,621 $2,384
Adjusted $1,341 $901 $2,621 $1,879
Net margin from continuing
operations
(Income from continuing
operations / Total net
sales and revenues) 2.7% 1.9% 2.7% 2.6%
Adjusted 2.7% 1.9% 2.7% 2.1%
Earnings per share - basic
$1-2/3 par value
Continuing operations $2.37 $1.57 $4.64 $4.31
Discontinued operations - $0.01 - $(0.01)
---- ---- ---- ----
Earnings per share $2.37 $1.58 $4.64 $4.30
Earnings per share - diluted
$1-2/3 par value
Continuing operations $2.36 $1.57 $4.61 $4.30
Discontinued operations - $0.01 - $(0.01)
---- ---- ---- ----
Earnings per share $2.36 $1.58 $4.61 $4.29
Earnings per share - adjusted
$1-2/3 par value
Continuing operations $2.36 $1.57 $4.61 $3.40
Discontinued operations - $0.01 - $(0.01)
---- ---- ---- ----
Earnings per share $2.36 (1) $1.58 $4.61 $3.39
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 565 561 564 561
Diluted shares 568 561 569 561
Cash dividends per share
of common stocks
GM $1-2/3 par value $0.50 $0.50 $1.00 $1.00
See reconciliation of adjusted financial results on pages 9 - 14, and
footnotes on page 16.
7
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
Book value per share of
common stocks at June 30
GM $1-2/3 par value $49.18 $13.27
Auto & Other Operations
total cash & marketable
securities at June 30
($Bil's) $21.5 $20.3
Cash in short-term VEBA $3.5 $3.4
---- ----
Total Auto & Other cash
& marketable securities
plus short-term VEBA $25.0 $23.7
==== ====
Auto & Other Operations
($Mil's)
Depreciation $1,441 $1,097 $2,589 $2,083
Amortization of special
tools 774 651 1,500 1,353
Amortization of intangible
assets 9 5 16 10
----- ----- ----- -----
Total $2,224 $1,753 $4,105 $3,446
===== ===== ===== =====
8
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Total net sales
and revenues
GMNA $29,429 $28,558 $ - $ - $29,429 $28,558
GME 8,094 7,303 - - 8,094 7,303
GMLAAM 1,909 1,119 - - 1,909 1,119
GMAP 1,693 1,267 - - 1,693 1,267
------ ------ -- --- ------ ------
Total GMA 41,125 38,247 - - 41,125 38,247
Other 77 96 - - 77 96
------ ------ -- --- ------ ------
Total Auto &
Other 41,202 38,343 - - 41,202 38,343
------ ------ -- --- ------ ------
GMAC 7,709 7,542 - - 7,709 7,542
Other Financing 237 (4) - - 237 (4)
------ ------ -- --- ------ ------
Total FIO 7,946 7,538 - - 7,946 7,538
------ ------ -- --- ------ ------
Total net sales
and revenues $49,148 $45,881 $ - $ - $49,148 $45,881
====== ====== == === ====== ======
Income (loss) from
continuing operations
before income taxes,
equity income, and
minority interests
GMNA $423 $90 $ - $ - $423 $90
GME (96) (34) - - (96) (34)
GMLAAM 11 (123) - - 11 (123)
GMAP 33 11 - - 33 11
--- ----- -- --- --- ---
Total GMA 371 (56) - - 371 (56)
Other (248) (357) - - (248) (357)
--- ----- -- --- --- ---
Total Auto &
Other 123 (413) - - 123 (413)
----- ----- -- --- ----- -----
GMAC 1,358 1,331 - - 1,358 1,331
Other Financing (24) 13 - - (24) 13
----- ----- -- --- ----- -----
Total FIO 1,334 1,344 - - 1,334 1,344
----- ----- -- --- ----- -----
Total income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests $1,457 $931 $ - $ - $1,457 $931
===== ===== == === ===== =====
9
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Income (loss) from
continuing operations
GMNA $328 $83 $ - $ - $328 $83
GME (45) (3) - - (45) (3)
GMLAAM 10 (103) - - 10 (103)
GMAP 236 163 - - 236 163
--- --- -- --- --- ---
Total GMA 529 140 - - 529 140
Other (34) (104) - - (34) (104)
--- --- -- --- --- ---
Total Auto &
Other 495 36 - - 495 36
--- --- -- --- --- ---
GMAC 860 834 - - 860 834
Other Financing (14) 9 - - (14) 9
--- --- -- --- --- ---
Total FIO 846 843 - - 846 843
--- --- -- --- --- ---
Income (loss) from
continuing
operations $1,341 $879 $ - $ - $1,341 $879
Income from
discontinued
operations - 22 - - - 22
----- --- -- --- ----- ---
Net income (loss) $1,341 $901 $ - $ - $1,341 $901
===== ===== == == ===== ===
Income tax expense
(benefit)
GMNA $73 $25 $ - $ - $73 $25
GME (36) (13) - - (36) (13)
GMLAAM (2) (25) - - (2) (25)
GMAP (1) 8 - - (1) 8
--- --- -- --- --- ---
Total GMA 34 (5) - - 34 (5)
Other (216) (251) - - (216) (251)
--- --- -- --- --- ---
Total Auto &
Other (182) (256) - - (182) (256)
--- --- -- --- --- ---
GMAC 498 496 - - 498 496
Other Financing (10) 4 - - (10) 4
--- --- -- --- --- ---
Total FIO 488 500 - - 488 500
--- --- -- --- --- ---
Income tax expense
(benefit) $306 $244 $ - $ - $306 $244
=== === == == === ===
10
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Effective tax rate
Total GM Corp. 21% 26% - - 21% 26%
GMNA 17% 28% - - 17% 28%
GME 38% 38% - - 38% 38%
GMAC 37% 37% - - 37% 37%
Tax settlements that were previously expected in the second
quarter of 2004 are now expected to be completed in the second
half of 2004. Excluding these settlements, GM's effective tax rate
is expected to be approximately 21% on an ongoing quarterly basis.
Equity income (loss)
and minority interests
GMNA $(22) $18 $ - $ - $(22) $18
GME 15 18 - - 15 18
GMLAAM (3) (5) - - (3) (5)
GMAP 202 160 - - 202 160
--- --- -- -- --- ---
Total GMA $192 $191 $ - $ - $192 $191
=== === == == === ===
11
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 $58,532 $58,521 $ - $ - $58,532 $58,521
GME 15,637 13,925 - - 15,637 13,925
GMLAAM 3,742 2,164 - - 3,742 2,164
GMAP 3,292 2,414 - - 3,292 2,414
------ ------ -- --- ------ ------
Total GMA 81,203 77,024 - - 81,203 77,024
Other 136 1,134 - (814) 136 320
------ ------ -- --- ------ ------
Total Auto &
Other 81,339 78,158 - (814) 81,339 77,344
------ ------ -- --- ------ ------
GMAC 15,249 14,785 - - 15,249 14,785
Other Financing 245 (11) - - 245 (11)
------ ------ -- --- ------ ------
Total FIO 15,494 14,774 - - 15,494 14,774
------ ------ -- --- ------ ------
Total net sales
and revenues $96,833 $92,932 $ - $ (814) $96,833 $92,118
====== ====== == === ====== ======
Income (loss) from
continuing operations
before income taxes,
equity income, and
minority interests
GMNA $1,009 $829 $ - $ - $1,009 $829
GME (319) (148) - - (319) (148)
GMLAAM 19 (140) - - 19 (140)
GMAP 46 30 - - 46 30
--- --- -- --- --- ---
Total GMA 755 571 - - 755 571
Other (568) 92 - (814) (568) (722)
--- --- -- --- --- ---
Total Auto &
Other 187 663 - (814) 187 (151)
----- ----- -- --- ----- -----
GMAC 2,596 2,478 - - 2,596 2,478
Other Financing (25) (12) - - (25) (12)
----- ----- -- --- ----- -----
Total FIO 2,571 2,466 - - 2,571 2,466
----- ----- -- --- ----- -----
Total income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests $2,758 $3,129 $ - $ (814) $2,758 $2,315
===== ===== == === ===== =====
12
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 $779 $631 $ - $ - $779 $631
GME (161) (68) - - (161) (68)
GMLAAM 11 (115) - - 11 (115)
GMAP 511 238 - - 511 238
----- --- -- --- ----- ---
Total GMA 1,140 686 - - 1,140 686
Other (151) 205 - (505) (151) (300)
----- --- -- --- ----- ---
Total Auto &
Other 989 891 - (505) 989 386
----- ----- -- --- ----- -----
GMAC 1,646 1,533 - - 1,646 1,533
Other Financing (14) (8) - - (14) (8)
----- ----- -- --- ----- -----
Total FIO 1,632 1,525 - - 1,632 1,525
----- ----- -- --- ----- -----
Income (loss) from
continuing
operations $2,621 $2,416 $ - $(505) $2,621 $1,911
Income from
discontinued
operations - (32) - - - (32)
----- ----- -- --- ----- -----
Net income (loss) $2,621 $2,384 $ - $ (505) $2,621 $1,879
===== ===== == == ===== =====
Income tax expense
(benefit)
GMNA $175 $216 $ - $ - $175 $216
GME (121) (56) - - (121) (56)
GMLAAM 3 (32) - - 3 (32)
GMAP 5 19 - - 5 19
--- --- -- --- --- ---
Total GMA 62 147 - - 62 147
Other (420) (151) - (309) (420) (460)
--- --- -- --- --- ---
Total Auto &
Other (358) (4) - (309) (358) (313)
--- --- -- --- --- ---
GMAC 948 934 - - 948 934
Other Financing (11) (4) - - (11) (4)
--- --- -- --- --- ---
Total FIO 937 930 - - 937 930
--- --- -- --- --- ---
Income tax expense
(benefit) $579 $926 $ - $ (309) $579 $617
=== === == == === ===
13
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. 21% 30% - 38% 21% 27%
GMNA 17% 26% - - 17% 26%
GME 38% 38% - - 38% 38%
GMAC 37% 38% - - 37% 38%
Tax settlements that were previously expected in the second quarter
of 2004 are now expected to be completed in the second half of 2004.
Excluding these settlements, GM's effective tax rate is expected to
be approximately 21% on an ongoing quarterly basis.
Equity income (loss)
and minority interests
GMNA $(55) $18 $ - $ - $(55) $18
GME 37 24 - - 37 24
GMLAAM (5) (7) - - (5) (7)
GMAP 470 227 - - 470 227
--- --- -- -- --- ---
Total GMA $447 $262 $ - $ - $447 $262
=== === == == === ===
14
General Motors Corporation
Operating Statistics
Second Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
(units in thousands)
Worldwide Wholesale Sales
United States - Cars 503 487 985 986
United States - Trucks 755 761 1,481 1,518
----- ----- ----- -----
Total United States 1,258 1,248 2,466 2,504
Canada, Mexico, and Other 190 185 365 367
----- ----- ----- -----
Total GMNA 1,448 1,433 2,831 2,871
GME 477 447 910 874
GMLAAM 176 122 344 243
GMAP 71 69 133 131
----- ----- ----- -----
Total Worldwide 2,172 2,071 4,218 4,119
===== ===== ===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 223 220 437 391
Chevrolet - Trucks 489 505 876 878
Pontiac 135 120 256 227
GMC 153 155 283 263
Buick 84 85 162 168
Oldsmobile 7 34 24 68
Saturn 61 72 113 147
Cadillac 55 49 106 96
Other 22 26 39 46
----- ----- ----- -----
Total United States 1,229 1,266 2,296 2,284
Canada, Mexico, and Other 185 179 348 330
----- ----- ----- -----
Total GMNA 1,414 1,445 2,644 2,614
GME 539 481 1,039 956
GMLAAM 174 130 335 262
GMAP 220 181 435 360
----- ----- ----- -----
Total Worldwide 2,347 2,237 4,453 4,192
===== ===== ===== =====
Market Share
United States - Cars 23.5% 24.8% 24.6% 24.9%
United States - Trucks 29.4% 30.4% 28.4% 29.4%
Total United States 26.7% 27.9% 26.7% 27.3%
Total North America 26.2% 27.2% 26.3% 26.7%
Total Europe 9.8% 9.4% 9.6% 9.5%
Total LAAM 17.4% 15.6% 17.0% 15.6%
Asia and Pacific 5.4% 4.8% 5.0% 4.6%
Total Worldwide 14.7% 14.9% 14.1% 14.2%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 37.6% 29.5% 37.7% 29.8%
% Fleet Sales - Trucks 17.9% 15.1% 18.1% 14.9%
Total Vehicles 25.7% 21.0% 26.1% 21.3%
Retail Lease as % of Retail Sales
Total Smartlease
and Smartbuy 14.2% 7.3%
Days Supply of Inventory
at June 30
United States - Cars 87 73
United States - Trucks 123 98
GMNA Capacity Utilization
(2 shift rated) 87.3% 87.6% 86.2% 89.3%
GMNA Vehicle Revenue
Per Unit $18,801 $18,565
15
General Motors Corporation
Operating Statistics
Second Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
GMAC's U.S. Cost of Borrowing 3.33% 3.50%
Current Debt Spreads Over
U.S. Treasuries
2 Year 130 bp 255 bp
5 Year 195 bp 330 bp
10 Year 230 bp 370 bp
Worldwide Employment
at June 30 (in 000's)
United States Hourly 114 120
United States Salary 39 41
--- ---
Total United States 153 161
Canada, Mexico, and Other 33 31
--- ---
GMNA 186 192
GME 62 64
GMLAAM (2) 26 23
GMAP 14 13
GMAC 33 31
Other 5 7
--- ---
Total 326 330
=== ===
Worldwide Payrolls ($Bil's) $5.5 $5.1 $11.0 $10.4
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.
16
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
------- --------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions except per share
amounts)
Total net sales and revenues
$49,148 $45,881 $96,833 $92,932
------- ------- ------- -------
Cost of sales and other
expenses 39,464 37,253 78,127 75,015
Selling, general, and
administrative expenses 5,413 5,480 10,367 10,491
Interest expense 2,814 2,217 5,581 4,297
----- ----- ----- -----
Total costs and expenses 47,691 44,950 94,075 89,803
------ ------ ------ ------
Income from continuing
operations before income
taxes, equity income, and
minority interests 1,457 931 2,758 3,129
Income tax expense 306 244 579 926
Equity income (loss) and
minority interests 190 192 442 213
--- --- --- ---
Income from continuing
operations 1,341 879 2,621 2,416
Earnings (loss) from
discontinued operations - 22 - (32)
----- --- ----- -----
Net Income $1,341 $901 $2,621 $2,384
===== === ===== =====
Basic earnings (loss) per
share attributable to
common stocks
$1-2/3 par value
Continuing Operations $2.37 $1.57 $4.64 $4.31
Discontinued Operations - $0.01 - $(0.01)
---- ---- ---- ----
Earnings per share
attributable to $1-2/3 par
value $2.37 $1.58 $4.64 $4.30
==== ==== ==== ====
Earnings (loss) per share
from discontinued operations
attributable to Class H $ - $0.02 $ - $(0.02)
=== ==== === ====
Earnings (loss) per share
attributable to common
stocks assuming dilution
$1-2/3 par value
Continuing Operations $2.36 $1.57 $4.61 $4.30
Discontinued Operations - $0.01 - $(0.01)
---- ---- ---- ----
Earnings per share
attributable to $1-2/3 par
value $2.36 $1.58 $4.61 $4.29
==== ==== ==== ====
Earnings (loss) per share
from discontinued operations
attributable to Class H $ - $0.02 $ - $(0.02)
=== ==== === ====
17
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
-------- --------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions)
AUTOMOTIVE AND OTHER OPERATIONS
Total net sales and revenues $41,202 $38,343 $81,339 $78,158
------ ------ ------ ------
Cost of sales and other
expenses 37,307 35,331 73,747 71,155
Selling, general, and
administrative expenses 3,144 3,065 6,180 5,690
----- ----- ----- -----
Total costs and expenses 40,451 38,396 79,927 76,845
Interest expense 596 326 1,158 575
Net expense from transactions
with Financing and Insurance
Operations 32 34 67 75
------ ------ ------ ------
Income (loss) from continuing
operations before income
taxes, equity income, and
minority interests 123 (413) 187 663
Income tax (benefit) (182) (256) (358) (4)
Equity income (loss) and
minority interests 190 193 444 224
--- --- --- ---
Income from continuing
operations 495 36 989 891
Income (loss) from
discontinued operations - 22 - (32)
--- -- --- ---
Net Income - Automotive and
Other Operations $495 $58 $989 $859
=== == === ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $7,946 $7,538 $15,494 $14,774
----- ----- ------ ------
Interest expense 2,218 1,891 4,423 3,722
Depreciation and amortization
expense 1,145 1,578 2,600 3,084
Operating and other expenses 2,434 2,015 4,283 4,081
Provisions for financing and
insurance losses 847 744 1,684 1,496
----- ----- ----- -----
Total costs and expenses 6,644 6,228 12,990 12,383
----- ----- ------ ------
Net income from transactions
with Automotive and Other
Operations (32) (34) (67) (75)
--- --- --- ---
Income before income taxes,
equity income, and minority
interests 1,334 1,344 2,571 2,466
Income tax expense 488 500 937 930
Equity income (loss) and
minority interests - (1) (2) (11)
----- ----- ----- -----
Net income - Financing and
Insurance Operations $846 $843 $1,632 $1,525
=== === ===== =====
18
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, June 30,
2004 Dec. 31, 2003
(Unaudited) 2003 (Unaudited)
----------- ---- -----------
ASSETS (dollars in millions)
Cash and cash equivalents $29,901 $32,554 $27,824
Marketable securities 20,816 22,215 18,777
------ ------ ------
Total cash and marketable securities 50,717 54,769 46,601
Finance receivables - net 191,563 174,731 154,449
Loans held for sale 17,393 19,609 17,385
Accounts and notes receivable (less
allowances) 16,989 20,532 20,019
Inventories (less allowances) 11,576 10,960 10,796
Assets of discontinued operations - - 20,417
Deferred income taxes 27,379 27,190 39,027
Net equipment on operating leases - (less
accumulated depreciation) 32,800 32,790 33,207
Equity in net assets of nonconsolidated
affiliates 6,381 6,032 5,325
Property - net 37,578 38,211 36,859
Intangible assets - net 4,696 4,760 10,944
Other assets 58,408 58,923 15,894
------ ------ ------
Total assets $455,480 $448,507 $410,923
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable (principally trade) $26,377 $25,422 $22,974
Notes and loans payable 277,027 271,756 228,281
Liabilities of discontinued operations - - 9,724
Postretirement benefits other than
pensions 31,691 36,292 38,583
Pensions 7,559 8,024 23,873
Deferred income taxes 8,101 7,508 6,773
Accrued expenses and other liabilities 76,624 73,930 69,920
------ ------ ------
Total liabilities 427,379 422,932 400,128
Minority interests 328 307 414
Stockholders' equity
$1-2/3 par value common stock
(outstanding, 564,721,304;
561,997,725; and 560,712,564 shares) 941 937 935
Class H common stock (outstanding,
1,108,139,876 shares - - 111
at June 30, 2003)
Capital surplus (principally additional
paid-in capital) 15,181 15,185 22,815
Retained earnings 14,809 12,752 11,855
------ ------ ------
Subtotal 30,931 28,874 35,716
Accumulated foreign currency translation
adjustments (1,685) (1,815) (2,292)
Net unrealized gain (loss) on derivatives 369 51 (205)
Net unrealized gains on securities 557 618 612
Minimum pension liability adjustment (2,399) (2,460) (23,450)
----- ----- ------
Accumulated other comprehensive loss (3,158) (3,606) (25,335)
----- ----- ------
Total stockholders' equity 27,773 25,268 10,381
------ ------ ------
Total liabilities and
stockholders' equity $455,480 $448,507 $410,923
======= ======= =======
19
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
June 30, June 30,
2004 Dec. 31, 2003
(Unaudited) 2003 (Unaudited)
----------- ---- -----------
ASSETS (dollars in millions)
Automotive and Other Operations
Cash and cash equivalents $13,182 $14,424 $15,397
Marketable securities 8,319 9,067 4,913
------ ------ ------
Total cash and marketable securities 21,501 23,491 20,310
Accounts and notes receivable (less
allowances) 6,396 5,380 5,528
Inventories (less allowances) 11,576 10,960 10,796
Assets of discontinued operations - - 20,417
Net equipment on operating leases (less
accumulated depreciation) 6,914 7,173 5,946
Deferred income taxes and other current
assets 10,876 10,851 9,884
------ ------ ------
Total current assets 57,263 57,855 72,881
Equity in net assets of nonconsolidated
affiliates 6,381 6,032 5,325
Property - net 35,684 36,071 34,882
Intangible assets - net 1,412 1,479 7,591
Deferred income taxes 18,316 18,086 30,496
Other assets 41,657 42,262 1,743
------- ------- -------
Total Automotive and Other Operations
assets 160,713 161,785 152,918
Financing and Insurance Operations
Cash and cash equivalents 16,719 18,130 12,427
Investments in securities 12,497 13,148 13,864
Finance receivables - net 191,563 174,731 154,449
Loans held for sale 17,393 19,609 17,385
Net equipment on operating leases (less
accumulated depreciation) 25,886 25,617 27,261
Other assets 30,709 35,487 32,619
Net receivable from Automotive and Other
Operations 2,004 1,492 1,128
----- ----- -----
Total Financing and Insurance Operations
assets 296,771 288,214 259,133
------- ------- -------
Total assets $457,484 $449,999 $412,051
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive and Other Operations
Accounts payable (principally trade) $23,084 $21,542 $19,371
Loans payable 2,625 2,813 1,599
Liabilities of discontinued operations - - 9,724
Accrued expenses 46,726 45,417 42,286
Net payable to Financing and Insurance
Operations 2,004 1,492 1,128
------ ------ ------
Total current liabilities 74,439 71,264 74,108
Long-term debt 29,814 29,593 15,567
Postretirement benefits other
than pensions 27,721 32,285 34,642
Pensions 7,489 7,952 23,812
Other liabilities and deferred
income taxes 15,467 15,567 14,074
------ ------ ------
Total Automotive and Other Operations
liabilities 154,930 156,661 162,203
Financing and Insurance Operations
Accounts payable 3,293 3,880 3,603
Debt 244,588 239,350 211,115
Other liabilities and deferred
income taxes 26,572 24,533 24,335
------ ------ ------
Total Financing and Insurance
Operations liabilities 274,453 267,763 239,053
------- ------- -------
Total liabilities 429,383 424,424 401,256
Minority interests 328 307 414
Total stockholders' equity 27,773 25,268 10,381
------ ------ ------
Total liabilities and stockholders'
equity $457,484 $449,999 $412,051
======= ======= =======
20
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
-------------------------
2004 2003
---- ----
(dollars in millions)
Net cash provided by operating
activities $7,599 $10,648
Cash flows from investing activities
Expenditures for property (3,201) (3,146)
Investments in marketable securities -
acquisitions (6,466) (7,198)
Investments in marketable securities -
liquidations 7,064 5,804
Net originations and purchases of mortgage
servicing rights (816) (1,152)
Increase in finance receivables (66,456) (71,799)
Proceeds from sales of finance receivables 51,172 49,635
Proceeds from sale of business units - 1,076
Operating leases - acquisitions (7,015) (6,131)
Operating leases - liquidations 4,019 5,362
Investments in companies, net of cash
acquired (32) (59)
Other 552 (606)
------ ------
Net cash used in investing activities (21,179) (28,214)
Cash flows from financing activities
Net increase in loans payable 2,137 1,100
Long-term debt - borrowings 37,784 40,063
Long-term debt - repayments (30,986) (17,302)
Cash dividends paid to stockholders (564) (560)
Other 2,804 1,333
----- -----
Net cash provided by financing activities 11,175 24,634
Effect of exchange rate changes on cash and
cash equivalents (248) 436
---- ---
Net increase (decrease) in cash and cash
equivalents (2,653) 7,504
Cash and cash equivalents at beginning of
the period 32,554 20,320
------ ------
Cash and cash equivalents at end of the
period $29,901 $27,824
====== ======
21
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Automotive and Financing and
Other Insurance
----- ---------
Six Months Ended June 30,
-----------------------------------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions)
Net cash provided by operating
activities $955 $6,844 $6,644 $3,804
Cash flows from investing
activities
Expenditures for property (3,038) (2,762) (163) (384)
Investments in marketable
securities - acquisitions (855) (2,837) (5,611) (4,361)
Investments in marketable
securities - liquidations 1,603 100 5,461 5,704
Net change in mortgage
servicing rights - - (816) (1,152)
Increase in finance receivables - - (66,456)(71,799)
Proceeds from sales of finance
receivables - - 51,172 49,635
Proceeds from sale of business
units - 1,076 - -
Operating leases - acquisitions - - (7,015) (6,131)
Operating leases - liquidations - - 4,019 5,362
Investments in companies, net
of cash acquired (53) (59) 21 -
Other 110 35 442 (571)
--- -- --- ---
Net cash used in investing
activities (2,233) (4,517) (18,946)(23,697)
Cash flows from financing
activities
Net increase (decrease) in
loans payable (437) (427) 2,574 1,527
Long-term debt - borrowings 756 1,501 37,028 38,562
Long-term debt - repayments (55) (18) (30,931)(17,284)
Cash dividends paid to
stockholders (564) (560) - -
Other - - 2,804 1,333
---- ---- ----- -----
Net cash (used in) provided by
financing activities (300) 496 11,475 24,138
Effect of exchange rate
changes on cash and
cash equivalents (176) 373 (72) 63
Net transactions with
Automotive/Financing Operations 512 39 (512) (39)
--- --- --- --
Net increase (decrease) in
cash and cash equivalents (1,242) 3,235 (1,411) 4,269
Cash and cash equivalents at
beginning of the period 14,424 12,162 18,130 8,158
------ ------ ------ -----
Cash and cash equivalents at
end of the period $13,182 $15,397 $16,719 $12,427
====== ====== ====== =======
22
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS CORPORATION
(Registrant)
Date: July 21, 2004 By: /s/PETER R. BIBLE
--- --------------------------
(Peter R. Bible,
Chief Accounting Officer)
23