GM Q1 2018 Net Down 59%

Discussion in 'GM' started by xcel, Apr 29, 2018.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] Operating margins and overall profits continue to impress.

    Wayne Gerdes – CleanMPG – April 26, 2018

    [​IMG]

    On Thursday GM reported its Q1 2018 results with profits from all operating segments plus record earnings in China and GM Financial.

    GM stated that its Q1 2018 net income of 1.05 billion USD was down 59% from the $2.6 billion earned in the Q1 of 2017. The falloff was blamed on two items, a planned drop in pickup-truck production as the company retools of the brand new 2019 Silverado and Sierra, and a $900 million USD one-time charge for restructuring in Korea.

    The Korean charge included $400 million in termination benefits and $500 million in accounting charges. Both of which should lead to $500 million/year in cost savings according to GM CFO Chuck Stevens.

    Global revenue of $36.099 billion USD was down 3.1 percent from the $37.266 billion USD from a year ago.

    Q1 GM Regional Sales Volumes
    • United States: 716k vehicles, up 3.8 percent over the 690k sold in the Q1 of 2017
    • North America: 827k vehicles, up 1.3 percent over the 816k sold in the Q1 of 2017
    • Asia/Pacific, Middle East and Africa: 1,101k vehicles, up 2.9 percent over the 1,070k vehicles sold in the Q1 of 2017
    • South America: 167k vehicles, up 12.8 percent over the 148k vehicles sold in the Q1 of 2017
    GM North America Financials – GM earned $2.233 billion, down $1.2 billion from the $3,471 billion USD earned a year ago on lower production volumes. Margins were a still healthy 8% with full year expected to top 10 percent.

    GM International Financials – GMI earned $189 million in the first quarter, up slightly from $178 million a year ago. GM's China earned $597 million in the Q1, up 18.5 percent from a year ago. GM's sales volumes in China rose 7.9 percent in the first quarter.

    GM Financial – The financial side of the company earned a strong $443 million USD, up a strong 94 percent over the $228 million USD earned in the Q1 of 2017.

    GM recently reduced Cruze production from its Lordstown, OH plant while increasing GMC Acadia and Cadillac XT5 CUV production at its Spring Hill Manufacturing plant to balance U.S. supply and demand.
     
    BillLin likes this.

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