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) October 14, 2004
GENERAL MOTORS CORPORATION
--------------------------
(Exact Name of Registrant as Specified in its Charter)
STATE OF DELAWARE 1-143 38-0572515
----------------- ----- ----------
(State or other jurisdiction of (Commission (I.R.S. Employer
Incorporation or Organization) File Number) Identification No.)
300 Renaissance Center, 48265-3000
Detroit, Michigan (Zip Code)
-----------------------------------------------------------------
(Address of Principal Executive Offices)
Registrant's telephone number, including area code (313) 556-5000
--------------
================================================================================
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS
On October 14, 2004, a news release was issued on the subject of third
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 third quarter earnings release for GM.
GM Earns $440 Million or $0.78 Per Share in Third Quarter 2004
o GMAC reports ninth-consecutive quarter of earnings improvement
o GM gains market share in all four automotive regions
o U.S. dealer inventory reduced by 230,000 units in the third quarter
DETROIT - General Motors Corp. (NYSE: GM) today reported net income of $440
million, or $0.78 per diluted share, in the third quarter of 2004. These results
are at the low end of the range of GM's earnings guidance provided in July. In
the year-ago quarter, GM reported net income of $425 million, or $0.79 per
share, and earnings from continuing operations of $448 million, or $0.80 per
share. Revenue rose 3 percent to $44.9 billion.
Profits at General Motors Acceptance Corp. (GMAC) continued to be very strong,
compared with the prior year, but automotive results were weaker due to
increased losses in Europe, lower production volumes in North America, and
slower economic growth in China.
"Competition in the automotive business around the globe remains intense, and we
are seeing negative pricing in most major markets," said GM Chairman and Chief
Executive Officer Rick Wagoner. "Even though we increased market share in all
four regions, our automotive earnings in the third quarter reflect these
challenging market conditions, and were frankly disappointing."
"These financial results highlight that we've got to move faster in addressing
some tough cost challenges like health care in the United States and our
overcapacity and high cost footprint in Europe, where we announced major
restructuring actions earlier today. Our business strategy remains sound and on
track: introduce great cars and trucks, stay aggressive in the market, strive
for industry-leading cost competitiveness and quality, and generate cash. But
we've got to move more quickly in addressing these challenging, chronic
structural-cost issues."
GM Automotive Operations
GM's global-automotive business reported a loss of $130 million in the third
quarter of 2004, compared with net income of $34 million in the prior-year
period. Positive results at GM's Latin America/Africa/Mid-East (GMLAAM) were
more than offset by losses at GM North America (GMNA) and GM Europe (GME), and
lower profits at GM Asia Pacific (GMAP).
GM gained market share in all four regions of the world in the third quarter of
2004, with global market share rising to 15.5 percent from 15.1 percent in the
year-ago period.
GMNA reported a loss of $22 million in the third quarter of 2004, compared with
earnings of $128 million in the third quarter of 2003. GMNA's performance was
primarily driven by lower production volumes and unfavorable product mix and
pricing, partially offset by lower material costs and a reduction of
approximately $250 million after-tax in the reserve set aside for
product-liability matters. This reduction was the result of the annual analysis
of product-liability reserves.
In addition, health-care costs in the United States continue to increase at an
excessive rate and are a growing burden on GM's financial results.
2
"These continuing large increases in health-care costs put GM, and many other
U.S. businesses, at a significant disadvantage," Wagoner said. "Clearly, the
current situation is not sustainable. All of us -- government, business, the
health-care industry, labor and health-care consumers -- need to work together
to find solutions that ensure U.S.competitiveness in today's global economy."
GM's market share in North America rose to 28.5 percent in the third quarter of
2004, from 28.2 percent in the year-earlier period. In the United States, GM
finished the third quarter with strong sales, posting a 20-percent increase for
the month of September. That led to a reduction in dealer inventories of 230,000
units during the quarter to 1.137 million cars and trucks.
"GM continues its product renaissance," Wagoner said. "In fact, over the next
four years we will replace more than 90 percent of our portfolio in North
America on a volume basis. Through the remainder of this year, we have important
product introductions with the all-new Pontiac G6, the Buick LaCrosse, the
Cadillac STS, the Chevrolet Cobalt, and the Opel/Vauxhall Astra GTC in Europe.
These products, and the many that follow them, will strengthen our brands and
improve our competitiveness."
GME reported a loss of $236 million in the third quarter of 2004, compared with
a loss of $152 million in the year-ago quarter. The most-recent quarterly
results reflect intense price competition and foreign-exchange losses. GM's
market share in Europe rose to 9.6 percent in the third quarter of 2004 from 9.1
percent in the year-ago period.
"The pricing environment in Europe has deteriorated significantly this year, and
growth in some of our largest markets remains weak," Wagoner said. "In light of
these factors, we need to move more aggressively to significantly reduce our
cost structure in Europe, especially manufacturing and engineering."
GMAP earned $101 million in the third quarter of 2004, compared with earnings of
$162 million in the year-ago quarter, also reflecting lower pricing and
unfavorable mix driven by the economic slowdown in China. GM's market share in
the Asia Pacific region rose to 5.1 percent in the third quarter from 5.0
percent a year ago.
"The economic slowdown in China affected our financial performance there during
the third quarter," Wagoner said. "However, we see this situation as temporary.
We continue to expect to see significant growth in China and throughout the
region in the medium and long term."
GMLAAM earned $27 million in the third quarter of 2004, a substantial
improvement from the year-ago loss of $104 million, and the third consecutive
quarter of profitability.
"Our strong product portfolio and excellent dealer network have led to
market-share gains in South America, South Africa and the Mid-East, while
improved economic conditions have led to industry sales growth of 21 percent
during the quarter," Wagoner said, adding GM's market share in the GMLAAM region
rose to 17.1 percent in the third quarter of 2004 from 15.6 percent a year ago.
GMAC
Reflecting strong performance from GMAC's diversified business, GMAC earned $656
million in the third quarter of 2004, up from $630 million in the year-ago
quarter.
Net income from financing operations totaled $259 million in the third quarter
of 2004, compared with $320 million in the prior-year period. Lower credit
losses and improved lease residual results were more than offset by lower net
margins on stable asset levels.
Mortgage operations earned $302 million, up from $253 million in the year-ago
period. Higher interest rates had a negative effect on loan production and
securitization volumes but a favorable effect on net servicing revenue.
3
GMAC Insurance reported net income of $95 million for the third quarter of 2004,
up from $57 million a year ago. Operational strength across the business unit
contributed to improved net underwriting results while investment income
remained stable compared with the prior year.
"GMAC once again delivered very impressive financial results, in spite of the
more challenging interest rate environment," Wagoner said. "GMAC has done an
excellent job diversifying its earnings base across its portfolio of global
businesses, and also diversifying its funding base through new sources of
liquidity both here and abroad. GMAC enjoys strong liquidity, and expects to
continue to have ample access to the capital markets and other financing sources
to meet its needs."
Cash and Liquidity
Cash, marketable securities, and short-term assets of the Voluntary Employees'
Beneficiary Association (VEBA) Trust totaled $24.5 billion at Sept. 30, 2004,
excluding financing and insurance operations, down from $25.0 billion on June
30, 2004. Cash flow is typically lower in the third quarter due to lower
production volumes and costs related to the introduction of new vehicles.
In addition, GM experienced higher spending on health care than in prior years
and additional losses in Europe. For the nine months ended Sept. 30, 2004,
automotive cash flow stood at $2.0 billion. While GM expects positive automotive
cash flow in the fourth quarter, it has become more challenging to achieve GM's
previously stated target of $5 billion for the full year.
Looking Ahead
GM continues to expect total U.S. industry sales of approximately 17.2 million
vehicles in calendar year 2004. As a result of increased losses in Europe and
slower growth in Asia Pacific, GM is revising its 2004-calendar-year earnings
guidance to between $6.00 and $6.50 per share, excluding one-time items. This is
in line with GM's original target at the start of the year and down from the
midyear guidance of approximately $7.00 per share.
###
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.
About GM
General Motors Corp. (NYSE: GM), the world's largest vehicle manufacturer,
employs about 325,000 people globally. Founded in 1908, GM has been the global
automotive-sales leader since 1931. GM today has manufacturing operations in 32
countries and its vehicles are sold in 192 countries. In 2003, GM sold nearly
8.6 million cars and trucks, about 15 percent of the global vehicle market. GM's
global headquarters are at the GM Renaissance Center in Detroit. More
information on GM and its products can be found on the company's corporate
website at www.gm.com.
# # #
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
Sept. 30, 2004 Sept. 30, 2004
-------------- --------------
Net Net
Income EPS Income EPS
------ ----- ------ -----
REPORTED
--------
Net income $440 $0.78 $3,061 $5.39
=== ==== ===== ====
There were no special items in the Third 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
Sept. 30, 2003 Sept. 30, 2003
-------------- --------------
Net Net
Income EPS Income EPS
------ ----- ------ -----
REPORTED
--------
Income from continuing
operations $448 $0.80 $2,864 $5.10
(Loss)from discontinued
operations (23) (0.01) (55) (0.02)
--- ---- ----- ----
Net income 425 0.79 2,809 5.08
ADJUSTMENTS
-----------
Gain on Sale of GM Defense (A) - - (505) (0.90)
--- ---- --- ----
Subtotal - - (505) (0.90)
ADJUSTED
--------
Income from continuing
operations $448 $0.80 $2,359 $4.20
(Loss)from discontinued
operations (23) (0.01) (55) (0.02)
--- ---- ----- ----
Adjusted income $425 $0.79 $2,304 $4.18
=== ==== ===== ====
(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)
Third Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and
revenues $44,858 $43,519 $141,691 $136,451
Adjusted $44,858 $43,519 $141,691 $135,637
Income from continuing
operations $440 $448 $3,061 $2,864
Adjusted $440 $448 $3,061 $2,359
(Loss) from
discontinued operations - (23) - (55)
Adjusted - (23) - (55)
Net income $440 $425 $3,061 $2,809
Adjusted $440 $425 $3,061 $2,304
Net margin from continuing
operations
(Income from continuing
operations / Total net
sales and revenues) 1.0% 1.0% 2.2% 2.1%
Adjusted 1.0% 1.0% 2.2% 1.7%
Earnings per share - basic
$1-2/3 par value
Continuing operations $0.78 $0.80 $5.42 $5.11
Discontinued operations - (0.01) - (0.02)
---- ---- ---- ----
Earnings per share $0.78 $0.79 $5.42 $5.09
Earnings per share - diluted
$1-2/3 par value
Continuing operations $0.78 $0.80 $5.39 $5.10
Discontinued operations - (0.01) - (0.02)
---- ---- ---- ----
Earnings per share $0.78 $0.79 $5.39 $5.08
Earnings per share - diluted
adjusted
$1-2/3 par value
Continuing operations $0.78 $0.80 $5.39 $4.20
Discontinued operations - (0.01) - (0.02)
---- ---- ---- ----
Earnings per share $0.78 (1) $0.79 $5.39 $4.18
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 565 561 565 561
Diluted shares 567 561 568 561
Cash dividends per share
of common stocks
GM $1-2/3 par value $0.50 $0.50 $1.50 $1.50
See reconciliation of adjusted financial results on pages 9 - 14 and
footnotes on page 16.
7
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Third Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
Book value per share of
common stocks at Sept. 30
GM $1-2/3 par value $49.34 $13.76
Auto & Other Operations
total cash & marketable
securities at Sept. 30
($Bil's) $21.0 $25.9
Cash in short-term VEBA $3.5 $3.4
---- ----
Total Auto & Other cash
& marketable securities
plus short-term VEBA $24.5 $29.3
==== ====
Auto & Other Operations
($Mil's)
Depreciation $1,117 $1,063 $3,706 $3,146
Amortization of special
tools 737 676 2,237 2,029
Amortization of intangible
assets 9 10 25 20
----- ----- ----- -----
Total $1,863 $1,749 $5,968 $5,195
===== ===== ===== =====
GM's share of nonconsolidated
affiliates' net income (loss)
($Mil's)
Italy $30 $- $59 $23
Japan $32 $42 $191 $125
China $80 $142 $390 $311
South Korea $(2) $(22) $(18) $(50)
8
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Third Quarter
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Total net sales
and revenues
GMNA $26,343 $26,810 $ - $ - $26,343 $26,810
GME 6,935 6,270 - - 6,935 6,270
GMLAAM 2,166 1,304 - - 2,166 1,304
GMAP 1,601 1,384 - - 1,601 1,384
------ ------ -- -- ------ ------
Total GMA 37,045 35,768 - - 37,045 35,768
Other 57 77 - - 57 77
------ ------ -- -- ------ ------
Total Auto &
Other 37,102 35,845 - - 37,102 35,845
------ ------ -- -- ------ ------
GMAC 7,724 7,649 - - 7,724 7,649
Other Financing 32 25 - - 32 25
------ ------ -- -- ------ ------
Total FIO 7,756 7,674 - - 7,756 7,674
------ ------ -- -- ------ ------
Total net sales
and revenues $44,858 $43,519 $ - $ - $44,858 $43,519
====== ====== == == ====== ======
Income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests
GMNA $(69) $200 $ - $ - $(69) $200
GME (439) (251) - - (439) (251)
GMLAAM 45 (146) - - 45 (146)
GMAP (18) - - - (18) -
--- --- -- -- --- ---
Total GMA (481) (197) - - (481) (197)
Other (148) (374) - - (148) (374)
--- --- -- -- --- ---
Total Auto &
Other (629) (571) - - (629) (571)
--- --- -- -- --- ---
GMAC 969 962 - - 969 962
Other Financing (2) (4) - - (2) (4)
--- --- -- -- --- ---
Total FIO 967 958 - - 967 958
--- --- -- -- --- ---
Total income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests $338 $387 $ - $ - $338 $387
=== === == == === ===
9
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Third Quarter
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Income (loss) from
continuing operations
GMNA $(22) $128 $ - $ - $(22) $128
GME (236) (152) - - (236) (152)
GMLAAM 27 (104) - - 27 (104)
GMAP 101 162 - - 101 162
--- --- -- -- --- ---
Total GMA (130) 34 - - (130) 34
Other (83) (212) - - (83) (212)
--- --- -- -- --- ---
Total Auto &
Other (213) (178) - - (213) (178)
--- --- -- -- --- ---
GMAC 656 630 - - 656 630
Other Financing (3) (4) - - (3) (4)
--- --- -- -- --- ---
Total FIO 653 626 - - 653 626
--- --- -- -- --- ---
Income (loss) from
continuing
operations $440 $448 $ - $ - $440 $448
(Loss) from
discontinued
operations - (23) - - - (23)
--- --- -- -- --- ---
Net income (loss) $440 $425 $ - $ - $440 $425
=== === == == === ===
Income tax expense
(benefit)
GMNA $(13) $52 $ - $ - $(13) $52
GME (167) (96) - - (167) (96)
GMLAAM 13 (51) - - 13 (51)
GMAP (9) 7 - - (9) 7
--- --- -- -- --- ---
Total GMA (176) (88) - - (176) (88)
Other (65) (152) - - (65) (152)
--- --- -- -- --- ---
Total Auto &
Other (241) (240) - - (241) (240)
--- --- -- -- --- ---
GMAC 311 374 - - 311 374
Other Financing 1 - - - 1 -
--- --- -- -- --- ---
Total FIO 312 374 - - 312 374
--- --- -- -- --- ---
Income tax expense
(benefit) $71 $134 $ - $ - $71 $134
=== === == == === ===
10
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Third Quarter
2004 and 2003
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
2004 2003 2004 2003 2004 2003
---- ---- ---- ---- ---- ----
Effective tax rate
Total GM Corp. 21% 35% - - 21% 35%
GMNA 19% 26% - - 19% 26%
GME 38% 38% - - 38% 38%
GMAC 32% 39% - - 32% 39%
Tax settlements that were previously expected in the second
quarter of 2004 are now expected to be completed in the fourth
quarter 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 $34 $(20) $ - $ - $34 $(20)
GME 36 3 - - 36 3
GMLAAM (5) (9) - - (5) (9)
GMAP 110 169 - - 110 169
--- --- -- -- --- ---
Total GMA $175 $143 $ - $ - $175 $143
=== === == == === ===
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 $84,875 $85,331 $ - $ - $84,875 $85,331
GME 22,572 20,195 - - 22,572 20,195
GMLAAM 5,908 3,468 - - 5,908 3,468
GMAP 4,893 3,798 - - 4,893 3,798
------- ------- -- --- ------- -------
Total GMA 118,248 112,792 - - 118,248 112,792
Other 193 1,211 - (814) 193 397
------- ------- -- --- ------- -------
Total Auto &
Other 118,441 114,003 - (814) 118,441 113,189
------- ------- -- --- ------- -------
GMAC 22,973 22,434 - - 22,973 22,434
Other Financing 277 14 - - 277 14
------ ------ -- --- ------ ------
Total FIO 23,250 22,448 - - 23,250 22,448
------ ------ -- --- ------ ------
Total net sales
and revenues $141,691 $136,451 $ - $(814)$141,691 $135,637
======= ======= == === ======= =======
Income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests
GMNA $940 $1,029 $ - $ - $940 $1,029
GME (758) (399) - - (758) (399)
GMLAAM 64 (286) - - 64 (286)
GMAP 28 30 - - 28 30
--- --- -- --- --- ---
Total GMA 274 374 - - 274 374
Other (716) (282) - (814) (716) (1,096)
--- --- -- --- --- ---
Total Auto &
Other (442) 92 - (814) (442) (722)
----- ----- -- --- ----- -----
GMAC 3,565 3,440 - - 3,565 3,440
Other Financing (27) (16) - - (27) (16)
----- ----- -- --- ----- -----
Total FIO 3,538 3,424 - - 3,538 3,424
----- ----- -- --- ----- -----
Total income (loss)
from continuing
operations before
income taxes, equity
income, and minority
interests $3,096 $3,516 $ - $ (814) $3,096 $2,702
===== ===== == === ===== =====
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 $757 $759 $ - $ - $757 $759
GME (397) (220) - - (397) (220)
GMLAAM 38 (219) - - 38 (219)
GMAP 612 400 - - 612 400
----- --- -- --- ----- ---
Total GMA 1,010 720 - - 1,010 720
Other (234) (7) - (505) (234) (512)
----- --- -- --- ----- ---
Total Auto &
Other 776 713 - (505) 776 208
----- ----- -- --- ----- -----
GMAC 2,302 2,163 - - 2,302 2,163
Other Financing (17) (12) - - (17) (12)
----- ----- -- --- ----- -----
Total FIO 2,285 2,151 - - 2,285 2,151
----- ----- -- --- ----- -----
Income (loss) from
continuing
operations $3,061 $2,864 $ - $(505) $3,061 $2,359
(Loss)from
discontinued
operations - (55) - - - (55)
----- ----- -- --- ----- -----
Net income (loss) $3,061 $2,809 $ - $(505) $3,061 $2,304
===== ===== == === ===== =====
Income tax expense
(benefit)
GMNA $162 $268 $ - $ - $162 $268
GME (288) (152) - - (288) (152)
GMLAAM 16 (83) - - 16 (83)
GMAP (4) 26 - - (4) 26
--- --- -- --- --- ---
Total GMA (114) 59 - - (114) 59
Other (485) (303) - (309) (485) (612)
--- --- -- --- --- ---
Total Auto &
Other (599) (244) - (309) (599) (553)
----- ----- -- --- ----- -----
GMAC 1,259 1,308 - - 1,259 1,308
Other Financing (10) (4) - - (10) (4)
----- ----- -- --- ----- -----
Total FIO 1,249 1,304 1,249 1,304
----- ----- -- --- ----- -----
Income tax expense
(benefit) $650 $1,060 $ - $(309) $650 $751
=== ===== == === === ===
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% 28%
GMNA 17% 26% - - 17% 26%
GME 38% 38% - - 38% 38%
GMAC 35% 38% - - 35% 38%
Tax settlements that were previously expected in the second
quarter of 2004 are now expected to be completed in the fourth
quarter 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 $(21) $(2) $ - $ - $(21) $(2)
GME 73 27 - - 73 27
GMLAAM (10) (16) - - (10) (16)
GMAP 580 396 - - 580 396
--- --- -- -- --- ---
Total GMA $622 $405 $ - $ - $622 $405
=== === == == === ===
14
General Motors Corporation
Operating Statistics
Third Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
(units in thousands)
Worldwide Wholesale Sales
United States - Cars 416 453 1,401 1,439
United States - Trucks 679 686 2,160 2,205
----- ----- ----- -----
Total United States 1,095 1,139 3,561 3,644
Canada, Mexico, and Other 160 113 525 479
----- ----- ----- -----
Total GMNA 1,255 1,252 4,086 4,123
GME 386 372 1,297 1,246
GMLAAM 190 134 534 377
GMAP 72 71 204 202
----- ----- ----- -----
Total Worldwide 1,903 1,829 6,121 5,948
===== ===== ===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 265 221 701 612
Chevrolet - Trucks 531 517 1,407 1,395
Pontiac 122 125 378 352
GMC 175 163 458 426
Buick 87 90 249 258
Oldsmobile 3 29 27 96
Saturn 58 70 171 217
Cadillac 63 58 169 154
Other 21 25 60 72
----- ----- ----- -----
Total United States 1,325 1,298 3,620 3,582
Canada, Mexico, and Other 169 184 518 514
----- ----- ----- -----
Total GMNA 1,494 1,482 4,138 4,096
GME 461 434 1,500 1,390
GMLAAM 188 140 522 402
GMAP 209 197 659 557
----- ----- ----- -----
Total Worldwide 2,352 2,253 6,819 6,445
===== ===== ===== =====
Market Share
United States - Cars 26.9% 26.3% 25.4% 25.3%
United States - Trucks 31.1% 30.6% 29.4% 29.9%
Total United States 29.3% 28.7% 27.6% 27.8%
Total North America 28.5% 28.2% 27.0% 27.2%
Total Europe 9.6% 9.1% 9.5% 9.3%
Total LAAM 17.1% 15.6% 16.8% 15.6%
Asia and Pacific 5.1% 5.0% 5.2% 4.7%
Total Worldwide 15.5% 15.1% 14.6% 14.5%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 36.2% 30.5% 37.1% 30.1%
% Fleet Sales - Trucks 12.7% 9.5% 16.1% 12.9%
Total Vehicles 22.0% 18.1% 24.6% 20.1%
Retail Lease as % of Retail Sales
Total Smartlease
and Smartbuy 10.8% 6.6%
Days Supply of Inventory
at Sept. 30
United States - Cars 64 69
United States - Trucks 81 104
GMNA Capacity Utilization
(2 shift rated) 83.7% 86.1% 85.5% 88.3%
GMNA Vehicle Revenue
Per Unit $18,339 $18,984
15
General Motors Corporation
Operating Statistics
Third Quarter Year to Date
-------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
GMAC's U.S. Cost of Borrowing 3.62% 3.40%
Current Debt Spreads Over
U.S. Treasuries
2 Year 120 bp 185 bp
5 Year 200 bp 210 bp
10 Year 250 bp 265 bp
Worldwide Employment
at Sept. 30 (in 000's)
United States Hourly 112 119
United States Salary 38 40
--- ---
Total United States 150 159
Canada, Mexico, and Other 31 31
--- ---
GMNA 181 190
GME 62 63
GMLAAM (2) 28 23
GMAP 14 14
GMAC 33 32
Other 5 6
--- ---
Total 323 328
=== ===
Worldwide Payrolls ($Bil's) $4.9 $4.9 $15.9 $15.3
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 Ended Nine Months Ended
September 30, September 30,
------------ -------------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and revenues $44,858 $43,519 $141,691 $136,451
------ ------ ------- -------
Cost of sales and other
expenses 37,177 35,049 115,304 109,863
Selling, general, and
administrative expenses 4,364 5,576 14,731 16,268
Interest expense 2,979 2,507 8,560 6,804
------- ------- -------- -------
Total costs and expenses 44,520 43,132 138,595 132,935
------ ------ ------- -------
Income from continuing
operations before income
taxes, equity income, and
minority interests 338 387 3,096 3,516
Income tax expense 71 134 650 1,060
Equity income (loss) and
minority interests 173 195 615 408
--- --- ----- -----
Income from continuing
operations 440 448 3,061 2,864
Income (loss) from
discontinued operations - (23) - (55)
--- --- ----- -----
Net Income $440 $425 $3,061 $2,809
=== === ===== =====
Basic earnings (loss) per
share attributable to
common stocks
$1-2/3 par value
Continuing Operations $0.78 $0.80 $5.42 $5.11
Discontinued Operations - (0.01) - (0.02)
---- ---- ---- ----
Earnings per share
attributable to $1-2/3 par
value $0.78 $0.79 $5.42 $5.09
==== ==== ==== ====
Earnings (loss) per share
from discontinued operations
attributable to Class H $ - $(0.02) $ - $(0.04)
== ==== == ====
Earnings (loss) per share
attributable to common
stocks assuming dilution
$1-2/3 par value
Continuing Operations $0.78 $0.80 $5.39 $5.10
Discontinued Operations - (0.01) - (0.02)
---- ---- ---- ----
Earnings per share
attributable to $1-2/3 par
value $0.78 $0.79 $5.39 $5.08
==== ==== ==== ====
Earnings (loss) per share
from discontinued operations
attributable to Class H $ - $(0.02) $ - $(0.04)
== ==== == ====
17
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------ -------------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions)
AUTOMOTIVE AND OTHER OPERATIONS
Total net sales and revenues $37,102 $35,845 $118,441 $114,003
------ ------ ------- -------
Cost of sales and other
expenses 34,843 33,133 108,590 104,288
Selling, general, and
administrative expenses 2,200 2,703 8,380 8,393
------ ------ ------- -------
Total costs and expenses 37,043 35,836 116,970 112,681
Interest expense 622 516 1,780 1,091
Net expense from transactions
with Financing and Insurance
Operations 66 64 133 139
---- ---- ---- ----
Income (loss) from continuing
operations before income
taxes, equity income, and
minority interests (629) (571) (442) 92
Income tax (benefit) (241) (240) (599) (244)
Equity income (loss) and
minority interests 175 153 619 377
--- --- --- ---
Income from continuing
operations (213) (178) 776 713
Income (loss) from
discontinued operations - (23) - (55)
--- --- --- ---
Net Income - Automotive and
Other Operations $(213) $(201) $776 $658
=== === === ===
FINANCING AND INSURANCE OPERATIONS
Total revenues $7,756 $7,674 $23,250 $22,448
----- ----- ------ ------
Interest expense 2,357 1,991 6,780 5,713
Depreciation and amortization
expense 1,359 1,398 3,959 4,282
Operating and other expenses 2,171 2,561 6,454 6,842
Provisions for financing and
insurance losses 968 830 2,652 2,326
------ ------ ------ -------
Total costs and expenses 6,855 6,780 19,845 19,163
----- ----- ------ ------
Net income from transactions
with Automotive and Other (66) (64) (133) (139)
----- ----- ------ ------
Operations
Income before income taxes,
equity income, and minority
interests 967 958 3,538 3,424
Income tax expense 312 374 1,249 1,304
Equity income (loss) and
minority interests (2) 42 (4) 31
---- ---- ------ ------
Net income - Financing and
Insurance Operations $653 $626 $2,285 $2,151
=== === ===== =====
18
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Sept. 30, Sept. 30,
2004 Dec. 31, 2003
(Unaudited) 2003 (Unaudited)
---------- -------- -----------
ASSETS (dollars in millions)
Cash and cash equivalents $37,589 $32,554 $39,184
Marketable securities 21,168 22,215 21,368
------ ------ ------
Total cash and marketable securities 58,757 54,769 60,552
Finance receivables - net 189,763 174,731 161,160
Loans held for sale 16,786 19,609 19,931
Accounts and notes receivable (less
allowances) 17,385 20,532 19,163
Inventories (less allowances) 12,035 10,960 10,936
Assets of discontinued operations - - 19,687
Deferred income taxes 27,219 27,190 38,896
Net equipment on operating leases -
(less accumulated depreciation) 33,483 32,790 32,564
Equity in net assets of nonconsolidated
affiliates 6,637 6,032 5,780
Property - net 37,432 38,211 37,637
Intangible assets - net 4,732 4,760 10,952
Other assets 58,216 58,923 17,264
------- ------- -------
Total assets $462,445 $448,507 $434,522
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable (principally trade) $26,929 $25,422 $25,052
Notes and loans payable 284,071 271,756 257,647
Liabilities of discontinued operations - - 8,985
Postretirement benefits other than
pensions 31,948 36,292 35,841
Pensions 7,824 8,024 19,025
Deferred income taxes 6,181 7,508 6,467
Accrued expenses and other liabilities 77,255 73,930 69,996
-------- -------- --------
Total liabilities 434,208 422,932 423,013
Minority interests 369 307 740
Stockholders' equity
$1-2/3 par value common stock
(outstanding, 564,804,464;
561,997,725; and 560,741,759 shares) 941 937 935
Class H common stock (outstanding,
1,108,731,138 shares at September 30,
2003) - - 111
Capital surplus (principally additional
paid-in capital) 15,209 15,185 22,884
Retained earnings 14,966 12,752 12,000
------ ------ ------
Subtotal 31,116 28,874 35,930
Accumulated foreign currency translation
adjustments (1,678) (1,815) (2,099)
Net unrealized gain (loss) on derivatives 215 51 (130)
Net unrealized gains on securities 697 618 515
Minimum pension liability adjustment (2,482) (2,460) (23,447)
-------- -------- ------
Accumulated other comprehensive loss (3,248) (3,606) (25,161)
-------- -------- ------
Total stockholders' equity 27,868 25,268 10,769
-------- -------- --------
Total liabilities and stockholders'
equity $462,445 $448,507 $434,522
======= ======= =======
19
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
Sept. 30, Sept. 30,
2004 Dec. 31, 2003
(Unaudited) 2003 (Unaudited)
---------- -------- -----------
ASSETS (dollars in millions)
Automotive and Other Operations
Cash and cash equivalents $12,984 $14,424 $17,860
Marketable securities 7,969 9,067 8,022
------- ------- -------
Total cash and marketable securities 20,953 23,491 25,882
Accounts and notes receivable (less
allowances 6,542 5,380 5,777
Inventories (less allowances) 12,035 10,960 10,936
Assets of discontinued operations - - 19,687
Net equipment on operating leases (less 6,764 7,173 6,401
accumulated depreciation)
Deferred income taxes and other current
assets 10,813 10,851 9,796
------ ------ -------
Total current assets 57,107 57,855 78,479
Equity in net assets of nonconsolidated
affiliates 6,637 6,032 5,780
Property - net 35,583 36,071 35,640
Intangible assets - net 1,445 1,479 7,696
Deferred income taxes 18,086 18,086 30,353
Other assets 41,251 42,262 1,807
------- ------- -------
Total Automotive and Other Operations
assets 160,109 161,785 159,755
Financing and Insurance Operations
Cash and cash equivalents 24,605 18,130 21,324
Investments in securities 13,199 13,148 13,346
Finance receivables - net 189,763 174,731 161,160
Loans held for sale 16,786 19,609 19,931
Net equipment on operating leases (less
accumulated depreciation) 26,719 25,617 26,163
Other assets 31,264 35,487 32,843
Net receivable from Automotive and Other
Operations 2,548 1,492 1,735
------- -------- --------
Total Financing and Insurance Operations
assets 304,884 288,214 276,502
------- ------- -------
Total assets $464,993 $449,999 $436,257
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive and Other Operations
Accounts payable (principally trade) $23,287 $21,542 $20,540
Loans payable 2,540 2,813 2,154
Liabilities of discontinued operations - - 8,985
Accrued expenses 45,330 45,417 41,056
Net payable to Financing and Insurance
Operations 2,548 1,492 1,735
------- ------- -------
Total current liabilities 73,705 71,264 74,470
Long-term debt 30,065 29,593 29,548
Postretirement benefits other than
pensions 27,996 32,285 31,917
Pensions 7,755 7,952 18,968
Other liabilities and deferred income
taxes 15,402 15,567 14,178
-------- ------- -------
Total Automotive and Other Operations
liabilities 154,923 156,661 169,081
Financing and Insurance Operations
Accounts payable 3,642 3,880 4,512
Debt 251,466 239,350 225,945
Other liabilities and deferred income
taxes 26,725 24,533 25,210
------- -------- --------
Total Financing and Insurance Operations
liabilities 281,833 267,763 255,667
------- ------- -------
Total liabilities 436,756 424,424 424,748
Minority interests 369 307 740
Total stockholders' equity 27,868 25,268 10,769
------- -------- --------
Total liabilities and stockholders'
equity 464,993 $449,999 $436,257
======= ======= =======
20
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
-----------------
2004 2003
---- ----
(dollars in millions)
Net cash provided by operating activities $11,813 $7,287
Cash flows from investing activities
Expenditures for property (4,762) (4,935)
Investments in marketable securities -
acquisitions (10,321) (12,600)
Investments in marketable securities -
liquidations 10,496 7,997
Net originations and purchases of mortgage
servicing rights (1,151) (1,988)
Increase in finance receivables (93,163) (103,811)
Proceeds from sales of finance receivables 79,430 76,177
Proceeds from sale of business unit - 1,076
Operating leases - acquisitions (10,364) (8,719)
Operating leases - liquidations 5,637 7,801
Investments in companies, net of cash
acquired (85) (187)
Other 370 42
------- --------
Net cash used in investing activities (23,913) (39,147)
Cash flows from financing activities
Net increase in loans payable 1,559 (238)
Long-term debt - borrowings 57,492 77,505
Long-term debt - repayments (44,810) (27,815)
Cash dividends paid to stockholders (847) (840)
Other 3,763 1,606
------ -----
Net cash provided by financing activities 17,157 50,218
Effect of exchange rate changes on cash
and cash equivalents (22) 506
------- --------
Net increase (decrease) in cash and cash
equivalents 5,035 18,864
Cash and cash equivalents at beginning of
the period 32,554 20,320
------ ------
Cash and cash equivalents at end of the
period $37,589 $39,184
====== ======
21
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Automotive Financing and
and Other Insurance
------------- -------------
Nine Months Ended September 30,
--------------------------------
2004 2003 2004 2003
---- ---- ---- ----
(dollars in millions)
Net cash provided by operating
activities $1,273 $242 $10,540 $7,045
Cash flows from investing activities
Expenditures for property (4,502) (4,467) (260) (468)
Investments in marketable securities
- acquisitions (2,218) (7,033) (8,103) (5,567)
Investments in marketable securities
- liquidations 3,316 1,185 7,180 6,812
Net change in mortgage servicing
rights - - (1,151) (1,988)
Increase in finance receivables - - (93,163)(103,811)
Proceeds from sales of finance
receivables - - 79,430 76,177
Proceeds from sale of business unit - 1,076 - -
Operating leases - acquisitions - - (10,364) (8,719)
Operating leases - liquidations - - 5,637 7,801
Investments in companies, net of cash
acquired (94) (45) 9 (142)
Other 348 266 22 (224)
----- ------ ------- -------
Net cash used in investing
activities (3,150) (9,018) (20,763) (30,129)
Cash flows from financing activities
Net increase (decrease) in loans
payable (498) (388) 2,057 150
Long-term debt - borrowings 845 14,702 56,647 62,803
Long-term debt - repayments (72) (19) (44,738) (27,796)
Cash dividends paid to stockholders (847) (840) - -
Other - - 3,763 1,606
----- ------ ------ -----
Net cash provided by (used in)
financing activities (572) 13,455 17,729 36,763
Effect of exchange rate changes on
cash and cash equivalents (47) 373 25 133
Net transactions with
Automotive/Financing Operations 1,056 646 (1,056) (646)
----- ------ ------- ------
Net increase (decrease) in cash and
cash equivalents (1,440) 5,698 6,475 13,166
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 $12,984 $17,860 $24,605 $21,324
====== ====== ======= ======
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: October 14, 2004 By: /s/PETER R. BIBLE.
--- ------------------
(Peter R. Bible,
Chief Accounting Officer)
23