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GENERAL MOTORS ANNOUNCES THIRD-QUARTER FINANCIAL RESULTS

 DETROIT, Oct. 28 /PRNewswire/ -- General Motors Corporation (NYSE: GM) today reported a 1993 third-quarter consolidated loss of $113 million. Consolidated income for the first nine months of the year totaled $1.3 billion.
 After preference stock dividends and the allocation of earnings attributable to GM Class E and Class H common stocks, the loss per share on $1-2/3 par value common stock in the third quarter amounted to $0.49 per share.
 The third-quarter results include several special items, including a pre-tax increase of $950 million to the corporation's previously announced plant-closing reserve. On an after-tax basis, the increase in the reserve amounts to $589 million or an unfavorable $0.83 per share of $1-2/3 par value common stock.
 Other special items that negatively impact third-quarter results are labor-contract-related costs of $144 million after tax, primarily reflecting the recognition of lump-sum payments to retirees, which will be made in 1995 and 1996.
 These unfavorable special items, totaling $733 million, are partially offset by the $444 million favorable impact of the recently announced increase in the U.S. corporate income tax rate. The higher tax rate results in a benefit due to the corporation's deferred tax position.
 In total, the special items listed, including the tax-rate change described above, amount to an unfavorable $289 million or a loss of $0.39 per share of $1-2/3 par value common stock.
 Excluding these special items, consolidated income was $176 million. After reflecting preference stock dividends and the allocation of earnings attributable to GM Class E and Class H common stocks, this equates to a loss of $0.10 per share of $1-2/3 par value common stock.
 In the third quarter of 1992, GM lost $1.1 billion or $1.86 per share of $1-2/3 par value common stock. There were no special items recorded in the year-ago period.
 Sales and revenues totaled $30.2 billion during 1993's third quarter, an increase of 2.4 percent compared with the same period last year.
 "Our basic earnings performance in the traditionally weak third quarter shows our continued determination to meet tough challenges ahead as we work hard to achieve our short-term and long-range financial goals," GM Chief Executive Officer and President John F. Smith, Jr., said.
 "It's vitally important that we keep the energy of the GM team focused on rebuilding the corporation's financial strength," Smith said.
 "Even with the addition to the plant-closing reserve, we believe that we can attain our break-even target for our North American Operations this year before interest, taxes and non-cash health-care expenses," Smith explained.
 Total cash and marketable securities on hand at September 30, 1993, with GMAC on an equity basis, amounted to $8.2 billion, compared with $9.1 billion at June 30, 1993, and $6.3 billion at September 30, 1992.
 Worldwide wholesale vehicle sales by GM totaled 1,656,000 units, a 1.8-percent increase from the same period last year.
 General Motors subsidiaries GM Hughes Electronics Corporation and Electronic Data Systems Corporation reported improved operating results in the third quarter. General Motors Acceptance Corporation posted third-quarter results that trailed performance in the year-ago period.
 Following are highlights of the 1993 third-quarter financial performance by GM's major business sectors (see attached "Financial Summary" for additional details):
 NORTH AMERICAN OPERATIONS (NAO)
 The NAO third-quarter loss before interest, taxes and the ongoing non-cash effect of Statement of Financial Accounting Standards (SFAS) No. 106 was $1.6 billion. Despite the negative impacts of the $950 million increase in the plant-closing reserve and the pre-tax contract-related items of $232 million, this represents a $663-million improvement from the third quarter of 1992.
 "We faced some really tough issues, we've accomplished a lot, but we still have a long way to go," Smith said. "We won't be satisfied," he added, "until we've restored the earnings power of our operations in the key North American market."
 GM's third-quarter share of the total U.S. vehicle market was 31.2 percent, compared with 33.5 percent in the same period last year. The decline in GM's market share in the United States reflects the continued action to reduce sales to daily rental fleets along with short supplies of several vehicle lines due to model-changeover difficulties.
 GM's share of total U.S. car deliveries was 31.8 percent, compared with 33.6 percent in the third quarter of 1992. GM's share of truck deliveries in the third quarter this year was 30.3 percent, compared with a 33.3-percent share in the third quarter last year.
 "We would have liked to have had more vehicles to sell in the third quarter," Smith said, "but we were determined not to sacrifice quality by pushing our 1994-model start-up to make quick sales. We're not driven by short-term numbers -- we're driven by quality."
 INTERNATIONAL AUTOMOTIVE BUSINESS
 GM's international automotive operations earned $422 million in the third quarter compared with $260 million in the same period last year. The results reflected continued strong performance in GM's Latin American operations. Europe remained profitable despite a difficult economic climate, but profits were below 1992 levels. In Europe, GM's share of the passenger-car market increased to 13.9 percent in the third quarter, up from 12.3 percent in the year-ago period.
 GENERAL MOTORS ACCEPTANCE CORPORATION (GMAC)
 GMAC's income totaled $205 million in the third quarter of 1993, compared with $297 million in the year-earlier period. Results primarily reflected lower asset levels, tighter interest-rate margins and less income from receivable sales. In addition, the tax-rate increase reduced earnings from the prior-period level by $29 million.
 GM HUGHES ELECTRONICS CORPORATION (GMHE)
 GMHE reported earnings of $224 million in the third quarter, compared with earnings of $143 million in the year-ago period.
 The third-quarter results reflect strong performance in the automotive-electronics and defense-electronics segments. The 1993 period also benefited from the sale of GMHE's interest in Japan Communications Satellite Company.
 The earnings attributable to GM Class H common stock amounted to $0.56 per share in the third quarter, compared with earnings of $0.38 per share in the 1992 third quarter.
 ELECTRONIC DATA SYSTEMS CORPORATION (EDS)
 EDS continued its strong financial performance, with record third- quarter earnings of $192 million, an increase of $25 million compared with the third quarter of 1992 when EDS reported earnings of $167 million.
 EDS third-quarter performance reflects higher non-GM revenues as well as continued cost cutting.
 Third-quarter earnings per share attributable to GM Class E common stock were $0.40, up from $0.35 in the third quarter of 1992.
 GENERAL MOTORS CORPORATION
 FINANCIAL SUMMARY
 (Dollars in Millions Except Third Quarter
 Per Share Amounts) ----------------------
 1993 1992
 ------------------ --------- ----------
 Sales and Revenues
 GM sales $26,802.1 $25,905.2
 GMAC financing revenues 2,187.2 2,816.0
 Other income 1,525.7 1,119.0
 Intersegment transactions (329.5) (360.6)
 -------- --------
 Total Net Sales and
 Revenues $30,185.5 $29,479.6
 -------- --------
 Net Loss ($112.9)(1)($1,098.9)
 Earnings (Loss) Attributable to Common Stocks

 $1-2/3 par value ($347.0) ($1,281.0)
 Class E $98.4 $72.3
 Class H $48.9 $26.6
 Earnings (Loss) Per Share Attributable to Common Stocks
 $1-2/3 par value ($0.49)(1) ($1.86)
 Class E $0.40 $0.35
 Class H $0.56 $0.38
 Cash Dividends Per Share of Common Stocks
 $1-2/3 par value $0.20 $0.40
 Class E $0.10 $0.09
 Class H $0.18 $0.18
 Average Worldwide Employment (in 000s)
 GM (excluding units listed
 below) 505 538
 GMAC 18 19
 EDS 71 70
 GMHE 82 90
 --- ---
 Average Number of Employees 676 717
 Worldwide Payrolls $7,180.6 $7,330.5
 Worldwide Wholesale Sales (2) (Units in 000s)
 United States: Cars 558 536
 Trucks 362 341
 ------- -------
 Total United States 920 877
 Other North America 91 96
 ------- -------
 Total North America 1,011 973
 Overseas 645 653
 ------- -------
 Total All Sources 1,656 1,626
 ------- -------
 Certain 1992 amounts were reclassified to conform with 1993
 classifications.
 (1) Includes an increase to the plant closing reserve of
 $589.0 million ($0.83 per share) and labor contract related
 costs of $143.8 million ($0.20 per share), partially offset by
 the favorable impact of the income tax rate change of
 $444.3 million ($0.64 per share).
 (2) Effective January 1, 1993, GM changed its vehicle unit sales
 reporting policy from Factory Sales (where produced) to
 Wholesale Sales (where sold) to more effectively track dollar
 sales. Also included in Wholesale Sales are the sales of
 certain affiliates which were previously not included.
 FINANCIAL SUMMARY (continued)
 (Dollars in Millions)
 Third Quarter
 ------------------
 Major Business Sector
 Results 1993 1992
 ----- -----
 North American Automotive Business (Geographic Basis)
 NAO EBIT Before Plant Closing
 Reserve Increase ($649.0) ($2,262.0)
 Reserve Increase (950.0) -
 ------- -------
 NAO EBIT (1) (1,599.0) (2,262.0)
 Interest, Taxes & Other
 Adjustments 479.5 378.3
 ------- -------
 NAO Loss (1,119.5) (1,883.7)
 International Automotive Business
 (Geographic Basis) Income 422.3 260.1
 GMAC Income 204.8 296.9
 GMHE Earnings 224.0 143.2
 EDS Earnings 191.6 167.3
 Other Loss (2) (36.1) (82.7)
 ----- -----
 Consolidated Net Loss ($112.9) ($1,098.9)
 ===== =======
 Memo: Consolidated Net Income
 (Loss) Excluding
 Reserve Increase $476.1 ($1,098.9)
 ===== =======
 (1) EBIT is defined as NAO Earnings (Loss) Before
 Interest, Taxes & Incremental Ongoing SFAS No. 106
 (2) Includes Power Products & Defense and purchase
 accounting adjustments
 FINANCIAL SUMMARY (continued) Nine Months Ended
 (Dollars in Millions Except September 30,
 ----------------------
 Per Share Amounts) 1993 1992
 ------------------ --------- ----------
 Sales and Revenues
 GM sales $91,149.9 $86,673.5
 GMAC financing revenues 6,674.8 7,917.6
 Other income 4,405.4 3,597.9
 Intersegment transactions (1,056.6) (1,222.3)
 --------- --------
 Total Net Sales
 and Revenues $101,173.5 $96,966.7
 --------- --------
 Income (Loss) Before
 Cumulative Effect of
 Accounting Changes $1,289.4 ($1,968.8)
 Net Income (Loss) $1,289.4(1)($22,846.5)(2)
 Earnings (Loss) Attributable to Common Stocks
 $1-2/3 par value $615.9 ($23,072.3)(2)
 Class E $260.2 $195.0
 Class H $143.3 ($196.8)(2)
 Earnings (Loss) Per Share Attributable to Common Stocks
 $1-2/3 par value $0.85(1) ($37.05)(2)
 Class E $1.09 $0.96
 Class H $1.61 ($2.88)(2)
 Cash Dividends Per Share of Common Stocks
 $1-2/3 par value $0.60 $1.20
 Class E $0.30 $0.27
 Class H $0.54 $0.54
 Average Worldwide Employment (in 000s)
 GM (excluding units listed
 below) 532 566
 GMAC 18 19
 EDS 72 70
 GMHE 85 89
 --- ---
 Average Number of Employees 707 744
 Worldwide Payrolls $22,252.9 $22,510.7
 Worldwide Wholesale Sales (3) (Units in 000s)
 United States: Cars 2,135 2,088
 Trucks 1,297 1,160
 ----- -----
 Total United States 3,432 3,248
 Other North America 361 378
 ----- -----
 Total North America 3,793 3,626
 Overseas 1,940 2,066
 ----- -----
 Total All Sources 5,733 5,692
 ----- -----
 Certain 1992 amounts were reclassified to conform with
 1993 classifications.
 (1) Includes an increase to the plant closing reserve of
 $589.0 million ($0.83 per share) and labor contract
 related costs of $143.8 million ($0.20 per share),
 partially offset by the favorable impact of the income
 tax rate change of $444.3 million ($0.64 per share).
 (2) Includes the unfavorable effect of accounting changes
 (primarily SFAS No. 106) of $20,877.7 million
 ($20,720.1 million, or $33.43 per share, applicable to
 $1-2/3 par value and $157.6 million, or $2.18 per
 share, applicable to Class H common stock). Also
 includes a special restructuring charge of $749.4
 million, or $0.97 per share of $1-2/3 par value and
 $1.87 per share of Class H common stock.
 (3) Effective January 1, 1993, GM changed its vehicle unit
 sales reporting policy from Factory Sales (where
 produced) to Wholesale Sales (where sold) to more
 effectively track dollar sales. Also included in
 Wholesale Sales are the sales of certain affiliates
 which were previously not included.
 FINANCIAL SUMMARY (concluded)
 (Dollars in Millions) Nine Months Ended
 September 30,
 ------------------
 Major Business Sector
 Results 1993 1992
 ----- -----
 North American Automotive Business (Geographic Basis)
 NAO EBIT Before Plant Closing
 Reserve Increase $551.7 ($3,552.0)
 Reserve Increase (950.0) -
 ------- --------
 NAO EBIT (1) (398.3) (3,552.0)
 Interest, Taxes & Other
 Adjustments (1,010.3) (329.7)
 ------- --------
 Loss Before Accounting Change (1,408.6) (3,881.7)
 Cumulative Effect Accounting
 Change - (18,934.1)
 ------- --------
 NAO Loss ($1,408.6) ($22,815.8)
 ------- --------
 International Automotive Business
 (Geographic Basis) Income $954.6 $1,025.7
 ------- --------
 GMAC
 Income Before Accounting
 Change $774.3 $928.4
 Cumulative Effect Accounting
 Change - (282.6)
 ------- --------
 Income $774.3 $645.8
 ------- --------
 GMHE
 Earnings Before Accounting
 Changes and Restructuring
 Charge $645.3 $465.1
 Cumulative Effect Accounting
 Changes - (872.1)
 Restructuring Charge - (749.4)
 ------- --------
 Earnings (Loss) $645.3 ($1,156.4)
 ------- --------
 EDS
 Earnings $521.1 $457.5
 ------- --------
 Other (2)
 Loss Before Accounting
 Change ($197.3) ($214.4)
 Cumulative Effect Accounting
 Change - (788.9)
 ------- --------
 Loss ($197.3) ($1,003.3)
 ------- --------
 Consolidated Net Income
 (CNI) (Loss) $1,289.4 ($22,846.5)
 ======= ========
 Memo: CNI (Loss) Excluding Cumulative
 Effect Accounting Changes
 and Reserve Increase $1,878.4 ($1,219.4)
 ======= ========
 (1) EBIT is defined as NAO Earnings (Loss) Before
 Interest, Taxes & Incremental Ongoing SFAS No. 106
 (2) Includes Power Products & Defense and purchase
 accounting adjustments
 -0- 10/28/93
 /CONTACT: Mark Tanner of General Motors, 313-556-2019/
 (GM)


CO: General Motors ST: Michigan IN: AUT SU: ERN

JG-SM -- DE001 -- 7712 10/28/93 08:28 EDT
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