GM Q2 2017: Net Income of $1.6 billion, Down 42.1% on Revenues of $37.0 billion USD

Discussion in 'In the News' started by xcel, Jul 31, 2017.

  1. xcel

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

    [​IMG] US CUV sales provide powerful income while discontinued European and other International operations create a $770 million haircut.

    Wayne Gerdes – CleanMPG – July 25, 2017

    [​IMG]

    GM announced second-quarter earnings and revenue from continuing operations driven by robust results in North America and China, solid improvement in South America and continued growth of GM Financial.

    Net Income of $1.6 billion was down 42.1 percent due to special items on revenues of $37.0 billion USD. Earnings before interest and taxes of $3.682 billion USD was down 4.3 percent from the $3.846 result achieved in the Q2 of 2016.

    Those net loss from special items of $770 million before tax included $0.5 billion related to GM International Operations restructuring (Europe), $0.1 billion due to Venezuela deconsolidation, and approximately $0.1 billion for legal matters related to the ignition switch recall.

    Of the Q2s $3.682 billion EBIT, $3.475 billion EBIT or 94.4 percent was earned within North America alone despite selling just 3.1 percent more vehicles in North America vs. China.

    Regarding Q2 and CYTD sales volumes, GM sold 2,342,675vehicles in the Q2, down 2.0 percent from the 2,390,246 sold in the Q2 of 2016. YTD sales of 4,686,038 were off 1.7 percent below the 4,768,217 sold though the same period of 2016.

    Regional Q2 2017 Financial Details

    North America – 878,862 vehicles sold, down 3.4 percent while earning $3.5 billion USD EBIT.
    International incl. China - 852,386 vehicles sold, up 1.6 percent, International Operations including Europe and Asia earned $340 million USD EBIT.

    South America - 160,450 vehicles sold, up 17.9 percent while losing $23 million USD.

    GM 2017 Full Year Guidance
    • Full fiscal year revenues to be higher than 2016s $149.2 billion USD
    • EBIT to be higher than 2016s $12.8 billion USD
    • EBIT margin to be greater than 2016s 8.6%
    • EPS of $6.00 to $6.50/share vs 2016s $6.12/share
     
  2. xcel

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

    GM closes sale of Opel/Vauxhall to Groupe PSA

    Early this morning, GM announced it has closed the sale divesting itself of most of its European Operations to Opel/Vauxhall.

    According to GM, the sale represents a win for all stakeholders and is the latest and most significant in a series of actions GM has taken to strengthen its global enterprise and position itself for the future, while immediately improving the company’s financial performance.

    GM President Dan Ammann:
    The sale of GM Financial’s European operations to Groupe PSA and BNP Paribas is expected to close later this year, subject to various regulatory approvals.
     

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