Printer Friendly

GM Reports First Quarter Financial Results; -- Net income of $1.5 billion, or $2.71 per share -- Adjusted net income of $1 billion, or $1.84 per share, excluding Hughes and the sale of GM Defense -- Total automotive cash exceeds $20 billion.

DETROIT -- DETROIT, April 15 /PRNewswire/ -- General Motors Corp. today reported net income of $1.5 billion, or $2.71 per diluted share of GM's $1-2/3 par value common stock, in the first quarter of 2003, up from $228 million, or $0.57 per share, in the first quarter of 2002.

GM's adjusted income, which excludes a gain from the sale of GM Defense and results from Hughes Electronics, totaled $1 billion, or $1.84 per share, in the first quarter of 2003. GM's adjusted net income in the first quarter of 2002 was $791 million, or $1.39 per share. Automotive and financing revenue rose about 5 percent.

GM's performance in the first quarter of 2003 reflected profitable automotive operations in North America, significantly improved results in Europe and Asia, record earnings at General Motors Acceptance Corp., and continued strong automotive cash flow.

The first-quarter 2003 results include a gain of $505 million after tax, or $0.90 per share, from the previously announced sale of GM Defense. The first-quarter 2002 results included unfavorable special items totaling $417 million, or $0.72 per share.

"The first quarter financial results reflect solid contributions from both our automotive operations and our finance unit," said GM Chairman Jack Smith. "As I prepare to retire from General Motors, I'm confident that GM has the right products and the right management team to continue to leverage our strengths as the world's largest automaker to grow the business around the world."

"GM turned in a strong performance overall during the first quarter," GM President and Chief Executive Officer Rick Wagoner said. "I'm particularly pleased with the record-breaking performance at GMAC, the continued strength of our Asia-Pacific operations, and the growing momentum behind GM Europe's turnaround. While market conditions were admittedly challenging, market share performance in North America did not meet our expectations. We are launching new products in key, high-volume segments of the market to improve our competitiveness, and we expect to remain aggressive in the marketplace. At the same time, we must continue to build on our tremendous progress in improving quality and reducing costs around the globe."

Wagoner said GM's passenger car offensive is already underway with the launch of the Pontiac Grand Prix, followed by the Chevrolet Malibu and Malibu Maxx, and the Pontiac GTO later this year. In addition, Cadillac's renaissance continues with the upcoming introduction of the Cadillac XLR roadster and SRX crossover vehicle. GM is also expanding its truck line-up in 2003 with the Cadillac Escalade ESV, the Buick Rainier, the GMC Envoy XUV and the all-new Chevrolet Colorado and the GMC Canyon.

In Europe, GM is introducing five new models this year, including the Opel Meriva, Signum, Vectra wagon and Speedster Turbo, and the Saab 9-3 Cabrio. Additionally, GM Daewoo Auto & Technology Co. is launching three new 2003 products in Europe: the Matiz, the Kalos and the Nubira.

Cadillac, Saab Post Impressive Sales Gains

Within the luxury segment of the market, GM continued to demonstrate strong momentum with Cadillac sales surging 16 percent in the first quarter of 2003 and Saab Cars USA reporting the best quarterly sales results in its 47-year history.

"Cadillac's resurgence epitomizes GM's strategy to deliver truly exciting and unique products," Wagoner said. "The Escalade and the CTS are allowing GM to reach younger, more affluent customers, and we expect that trend to continue with the introduction of the SRX and the XLR later this year. And, the new Saab 9-3 sports sedan is off to a very strong start."

GM financial results described throughout the remainder of this release exclude special items unless otherwise noted. See Highlights for reconciliation of adjusted results to results based on Generally Accepted Accounting Principles (GAAP).

Cash and Liquidity

GM generated approximately $3.3 billion in automotive cash in the first quarter of 2003, including approximately $1.1 billion from the sale of GM Defense. Cash, marketable securities, and assets of the VEBA trust invested in short-term fixed-income securities totaled $20.6 billion at March 31, 2003, excluding financing and insurance operations and Hughes, compared with $17.3 billion on Dec. 31, 2002. The increase in cash improved GM's net liquidity to $5.6 billion at the end of the first quarter of 2003 versus $2.3 billion at the end of 2002.

As previously announced, GM contributed 149.2 million shares of GM Class H stock, valued at $1.24 billion, to its U.S. employee benefit plans in the first quarter of 2003 to further strengthen GM's balance sheet.

GM Automotive Operations

GM's global automotive operations earned $546 million in the first quarter of 2003, compared with $496 million in the prior-year period. Global production rose 7 percent in the first quarter, compared with the same period in 2002.

GM North America (GMNA) earned $548 million in the first quarter of 2003, compared with $654 million in the first quarter of 2002. GM continued to show improvement in sales mix, material cost, and productivity in North America, but the gains were more than offset by intense pricing pressure, higher pension expense, and currency exchange losses versus the year-ago period. GM's U.S. market share was 26.6 percent in the first quarter of 2003, down from 28.2 percent in the year-earlier period.

GM Europe (GME) reported a loss of $65 million in the first quarter of 2003, a substantial improvement from a year ago when GME posted a loss of $125 million. The improvement reflected increased volume for GME as new Opel and Saab products reached the market. In addition, GME made significant progress in cost reduction at Opel/Vauxhall and Saab.

"We're pleased with the continuing progress of our turnaround effort at Opel/Vauxhall, and we've made good progress at Saab in a relatively short period of time," Wagoner said. "During the first quarter of 2003, GM Europe increased its market share to 9.6 percent, representing six consecutive months of market share gains in Europe. In addition, Saab reported impressive sales in its key markets, so we feel we're on the right track in Europe." GM Asia Pacific earned $75 million in the first quarter of 2003, up from $7 million in the year-ago quarter. Shanghai GM and GM's Australia-based Holden continued to post strong financial results. Asia-Pacific results also benefited from lower-than-expected start-up costs at GM Daewoo Auto & Technology Co. GM Latin America/Africa/Mid-East (GMLAAM) lost $12 million in the first quarter of 2003, compared with a loss of $40 million in the year-ago period.

"GM's Asia-Pacific operations are a growing contributor to our overall performance," Wagoner said. "Our joint ventures in China are expanding rapidly, and GM Daewoo is performing better than we had planned. While the Latin American market remains difficult, we are continuing to increase our market share and strengthen our number one position in the region, and reduce costs."

GMAC

General Motors Acceptance Corporation (GMAC) reported record quarterly earnings in the first quarter of 2003, propelled by record performance at its mortgage operations.

"GMAC's mortgage operations achieved truly exceptional results," Wagoner said. "We are also pleased to see higher earnings in its financing business."

GMAC earned $699 million in the first quarter of 2003, up nearly 60 percent from the $439 million a year ago. Earnings at the mortgage group rose to a record $371 million, more than double the $148 million recorded in the first quarter of 2002. The improvement reflects continued strong volumes at both the residential and commercial mortgage sectors.

GMAC's financing operations also posted a strong performance with earnings of $302 million in the quarter, up $47 million from a year ago, reflecting higher asset levels and lower credit loss provisions. First quarter earnings at the insurance group were $26 million, down $10 million from a year ago. These results reflect a decline in the investment portfolio, which more than offset improved underwriting income.

Hughes

Hughes Electronics reduced its losses substantially during the first quarter of 2003 to $54 million from a loss of $146 million in the prior-year period, led by a strong performance at DirecTV. During the quarter, DirecTV U.S. experienced better-than-expected subscriber growth and higher average revenue per subscriber. In addition, operating margins improved sharply, and DirecTV's monthly customer churn rate fell to 1.5 percent during the quarter, representing the lowest level attained in a first quarter in four years. DirecTV added 275,000 net subscribers in the first quarter of 2003, bringing the number of total U.S. subscribers to 11.4 million.

As a result of the improved performance at DirecTV, Hughes reported an operating profit of nearly $42 million in the first quarter of 2003, the first time Hughes has generated a quarterly operating profit in over four years.

GM recently announced that it plans to split off Hughes and simultaneously sell its 19.9 percent economic interest in Hughes to News Corp. for $14 per share, or approximately $3.8 billion. GM would receive about $3.1 billion in cash, and the remainder would be paid in cash or News Corp. preferred American Depositary Receipts (ADRs). GM would also receive a distribution of $275 million from Hughes in consideration of the value enhancement for Class H stockholders arising from the conversion from a tracking stock to an asset based stock. The transaction is expected to close in late 2003 or early 2004.

Looking Ahead

GM expects moderate economic growth in 2003 in the United States, resulting in total U.S. industry vehicle sales in the low to mid-16 million unit range. In Europe, total industry vehicle sales are expected to be in the high 18-million unit range.

Although there is considerable economic uncertainty and increasing price and volume pressure, GM expects second quarter earnings of at least $1.00 per share, excluding Hughes and any special items. GM expects to be profitable in both the third and fourth quarters of 2003. However, GM is now less certain of its ability to achieve its prior 2003 calendar-year guidance of $5.00 earnings per share, given the uncertain economic conditions around the globe. In light of these circumstances, GM is not providing any specific update to its calendar-year earnings guidance at this time.

General Motors, the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide, and has been the global automotive sales leader since 1931. More information on GM can be found at http://www.gm.com/ .

In this press release and related comments by General Motors management, our use of the words "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" 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-18) 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.

In connection with the proposed transactions, General Motors Corporation ("GM"), Hughes Electronics Corporation ("Hughes") and The News Corporation Limited ("News") intend to file relevant materials with the Securities and Exchange Commission ("SEC"), including one or more registration statement(s) that contain a prospectus and proxy/consent solicitation statement. Because those documents will contain important information, holders of GM $1-2/3 common stock and GM Class H common stock are urged to read them, if and when they become available. When filed with the SEC, they will be available for free (along with any other documents and reports filed by GM, Hughes or News with the SEC) at the SEC's website, http://www.sec.gov/ , and GM stockholders will receive information at an appropriate time on how to obtain transaction- related documents for free from GM. Such documents are not currently available.

GM and its directors and executive officers and Hughes and certain of its executive officers may be deemed to be participants in the solicitation of proxies or consents from the holders of GM $1-2/3 common stock and GM Class H common stock in connection with the proposed transactions. Information about the directors and executive officers of GM and their ownership of GM stock is set forth in the proxy statement for GM's 2002 annual meeting of shareholders filed with the SEC and available free of charge at the SEC's website at http://www.sec.gov/ . Investors may obtain additional information regarding the interests of such participants by reading the prospectus and proxy/consent solicitation statement if and when it becomes available.

Participants in GM's solicitation may also be deemed to include the following persons whose interests in GM are not described in the proxy statement for GM's 2002 annual meeting:
 Jack A. Shaw Chief Executive Officer, Hughes
 Roxanne S. Austin Executive VP, Hughes; President and COO,
 DIRECTV
 Patrick T. Doyle Corporate VP and Treasurer, Hughes
 Michael J. Gaines Corporate VP and CFO, Hughes
 Sandra A. Harrison Senior VP, Hughes
 Eddy W. Hartenstein Senior Executive VP, Hughes; Chairman,
 DIRECTV
 Larry D. Hunter Senior VP and General Counsel


Mr. Shaw beneficially owns 4,084 shares of GM $1-2/3 common stock and 2,244,987 shares of GM Class H common stock. Ms. Austin beneficially owns 3,293 shares of GM $1-2/3 common stock and 1,632,071 shares of GM Class H common stock. Mr. Doyle beneficially owns 746 shares of GM $1-2/3 common stock and 511,149 shares of GM Class H common stock. Mr. Gaines beneficially owns 482 shares of GM $1-2/3 common stock and 298,745 shares of GM Class H common stock. Ms. Harrison beneficially owns 1,632 shares of GM $1-2/3 common stock and 916,136 shares of GM Class H common stock. Mr. Hartenstein beneficially owns 3,036 shares of GM $1-2/3 common stock and 1,962,614 shares of GM Class H common stock. Mr. Hunter beneficially owns 0 shares of GM $1-2/3 common stock and 485,130 shares of GM Class H common stock. The above ownership information includes shares that are purchasable under options that are exercisable within 60 days of April 9, 2003. In addition, each of Mr. Shaw, Ms. Austin, Mr. Doyle, Mr. Gaines, Ms. Harrison, Mr. Hartenstein and Mr. Hunter holds options to acquire shares of GM Class H common stock that are not exercisable within 60 days of April 9, 2003.

Each of Mr. Shaw, Ms. Austin, Mr. Doyle, Mr. Gaines, Ms. Harrison, Mr. Hartenstein and Mr. Hunter has a severance agreement with Hughes that provides for severance in the event of an involuntary termination after a change in control, and each also has a retention agreement that provides for certain payments in the event of a change in control.

Investors may obtain additional information regarding the interests of the participants by reading the prospectuses and proxy/solicitation statements if and when they become available. This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Materials included in this document contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. The factors that could cause actual results of GM, Hughes and News to differ materially, many of which are beyond the control of GM, Hughes or News include, but are not limited to, the following: (1) operating costs, customer loss and business disruption, including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers, may be greater than expected following the transaction; (2) the regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule; (3) the effects of legislative and regulatory changes; (4) an inability to retain necessary authorizations from the FCC; (5) an increase in competition from cable as a result of digital cable or otherwise, direct broadcast satellite, other satellite system operators, and other providers of subscription television services; (6) the introduction of new technologies and competitors into the subscription television business; (7) changes in labor, programming, equipment and capital costs; (8) future acquisitions, strategic partnerships and divestitures; (9) general business and economic conditions; and (10) other risks described from time to time in periodic reports filed by GM, Hughes or News with the SEC. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. This cautionary statement applies to all forward-looking statements included in this document.
 General Motors Corporation
 List of Special Items - After Tax
 (dollars in millions except per share amounts)
 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
 March 31, 2003
 ---------------------
 GM $1-2/3
 Par Value
 Common Stock
 EPS
 ---------
 Net Income $1,483 $2.71
 Gain on Sale of GM Defense (A) (505) (0.90)
 --- ----
 Adjusted Income $978 $1.81
 === ====
 Three Months Ended
 March 31, 2002
 ---------------------
 GM $1-2/3
 Par Value
 Common Stock
 EPS
 ---------
 Net Income $228 $0.57
 GME Restructuring Charge (B) 407 0.72
 Hughes Space Shuttle Settlement (C) (59) (0.04)
 Hughes GECC Contractual Dispute (D) 51 0.03
 Hughes Loan Guarantee Charge (E) 18 0.01
 --- ----
 Adjusted Income $645 $1.29
 === ====
 (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 $1.1 billion.
 (B) The GME Restructuring Charge relates to the initiative
 implemented in the first quarter of 2002 to improve the
 competitiveness of GM's automotive operations in Europe.
 (C) The Space Shuttle Settlement relates to the favorable
 resolution of a lawsuit that was filed against the U.S.
 government by Hughes on March 22, 1991, based upon the
 National Aeronautics and Space Administration's (NASA)
 breach of contract to launch ten satellites on
 the Space Shuttle.
 (D) The GECC Contractual Dispute relates to an expected loss
 associated with a contractual dispute with General Electric
 Capital Corporation.
 (E) The Loan Guarantee Charge relates to a loan guarantee for
 a Hughes Network Systems affiliate in India.
 General Motors Corporation
 Summary Corporate Financial Results
 First Quarter
 -------------
 2003 2002
 ---- ----
 Total net sales and
 revenues ($Mil's) $49,365 $46,214
 Adjusted $48,551 $46,243
 Adjusted excluding Hughes
 (Automotive and Financing) $46,324 $44,202
 Net income ($Mil's) $1,483 $228
 Adjusted $978 $645
 Adjusted excluding Hughes $1,032 $791
 Net margin
 (net income / total net sales
 and revenues) 3.0% 0.5%
 Adjusted 2.0% 1.4%
 Adjusted excluding Hughes 2.2% 1.8%
 Earnings per share
 Basic- $1-2/3 $2.71 $0.58
 Diluted- $1-2/3 $2.71 $0.57
 Basic- Class H ($0.04) ($0.14)
 Diluted- Class H ($0.04) ($0.14)
 Adjusted earnings per share
 Basic - $1-2/3 $1.81 $1.32
 Diluted - $1-2/3 $1.81 $1.29
 Diluted - $1-2/3 excluding Hughes $1.84 $1.39
 Basic- Class H ($0.04) ($0.13)
 Diluted- Class H ($0.04) ($0.13)
 GM $1-2/3 par value average shares
 outstanding (Mil's)
 Basic shares 561 559
 Diluted shares 561 570
 Cash dividends per share of
 common stocks
 GM $1-2/3 par value $0.50 $0.50
 GM Class H - -
 Book value per share of common
 stocks at March 31
 GM $1-2/3 par value $11.98 $24.58
 GM Class H $2.40 $4.92
 ACO total cash & marketable securities
 at March 31 ($Bil's) $20.2 $15.4
 Cash in short-term VEBA $3.4 $3.0
 ---- ----
 ACO total cash & marketable
 securities plus short-term VEBA $23.6 $18.4
 less: Hughes cash & marketable
 securities $3.0 $1.1
 ---- ----
 Total Automotive cash & marketable
 securities plus short-term VEBA $20.6 $17.3
 ==== ====
 See reconciliation of adjusted financial results and
 footnotes.
 General Motors Corporation
 Summary Corporate Financial Results
 First Quarter
 2003
 --------------
 (Dollars in millions)
 Total net sales and Reported Special Items Adjusted
 revenues -------- ------------ --------
 GMNA $29,963 - $29,963
 GME 6,622 - 6,622
 GMLAAM 1,045 - 1,045
 GMAP 1,147 - 1,147
 ------ ----- ------
 Total GMA 38,777 - 38,777
 Hughes 2,227 - 2,227
 Other 1,038 (814) 224
 ------ ----- ------
 Total ACO 42,042 (814) 41,228
 ------ ----- ------
 GMAC 7,330 - 7,330
 Other Financing (7) - (7)
 ------ ----- ------
 Total FIO 7,323 - 7,323
 ------ ----- ------
 Total net sales and
 revenues $49,365 (814) $48,551
 ====== ===== ======
 Income / (expense)
 before income taxes and
 minority interest
 GMNA $739 - $739
 GME (114) - (114)
 GMLAAM (17) - (17)
 GMAP 19 - 19
 ----- ----- -----
 Total GMA 627 - 627
 Hughes (50) - (50)
 Other 449 (814) (365)
 ----- ----- -----
 Total ACO 1,026 (814) 212
 ----- ----- -----
 GMAC 1,147 - 1,147
 Other Financing (25) - (25)
 ----- ----- -----
 Total FIO 1,122 - 1,122
 Total income / ----- ----- -----
 (expense) before
 income taxes and
 minority interests $2,148 (814) $1,334
 ===== ===== =====
 General Motors Corporation
 Summary Corporate Financial Results
 First Quarter
 2003
 ---------------
 (Dollars in millions) Reported Special Items Adjusted
 -------- ------------ --------
 Net income
 GMNA $548 - $548
 GME (65) - (65)
 GMLAAM (12) - (12)
 GMAP 75 - 75
 ----- --- ---
 Total GMA 546 - 546
 Hughes (54) - (54)
 Other 309 (505) (196)
 ----- --- ---
 Total ACO 801 (505) 296
 GMAC 699 - 699
 Other Financing (17) - (17)
 ----- --- ---
 Total FIO 682 - 682
 ----- --- ---
 Net income (loss) $1,483 $(505) $978
 ===== === ===
 Income tax expense
 (benefit)
 GMNA $191 - $191
 GME (43) - (43)
 GMLAAM (7) - (7)
 GMAP 11 - 11
 --- --- ---
 Total GMA 152 - 152
 Hughes (26) - (26)
 Other 100 (309) (209)
 --- --- ---
 Total ACO 226 (309) (83)
 --- --- ---
 GMAC 438 - 438
 Other Financing (8) - (8)
 --- --- ---
 Total FIO 430 - 430
 --- --- ---
 Income tax expense
 (benefit) $656 (309) $347
 === === ===
 Effective tax rate
 GMNA 25.8% - 25.8%
 GME 37.7% - 37.7%
 GMLAAM 41.2% - 41.2%
 GMAP 57.9% - 57.9%
 Hughes 52.0% - 52.0%
 GMAC 38.2% - 38.2%
 Total GM Corp. 30.5% 38.0% 26.0%
 Equity income (loss)
 and minority interests
 GMNA $ - - $ -
 GME 6 - 6
 GMLAAM (2) - (2)
 GMAP 67 - 67
 -- -- --
 Total GMA $71 - $71
 == == ==
 General Motors Corporation
 Summary Corporate Financial Results
 First Quarter
 2002
 -------------
 (Dollars in millions)
 Total net sales and Reported Special Items Adjusted
 revenues -------- ------------ --------
 GMNA $29,339 - $29,339
 GME 5,584 - 5,584
 GMLAAM 1,301 - 1,301
 GMAP 1,057 - 1,057
 ------ -- ------
 Total GMA 37,281 - 37,281
 Hughes 2,012 29 2,041
 Other 480 - 480
 ------ -- ------
 Total ACO 39,773 29 39,802
 ------ -- ------
 GMAC 6,353 - 6,353
 Other Financing 88 - 88
 ------ -- ------
 Total FIO 6,441 - 6,441
 ------ -- ------
 Total net sales and
 revenues $46,214 29 $46,243
 ====== == ======
 Income / (expense) before
 income taxes and minority
 interest
 GMNA $938 - $938
 GME (798) 641 (157)
 GMLAAM (41) - (41)
 GMAP (13) - (13)
 --- --- -----
 Total GMA 86 641 727
 Hughes (231) 17 (214)
 Other (235) - (235)
 --- --- -----
 Total ACO (380) 658 278
 --- --- -----
 GMAC 736 - 736
 Other Financing (2) - (2)
 --- --- -----
 Total FIO 734 - 734
 --- --- -----
 Total income / (expense)
 before income taxes and
 minority interests $354 658 $1,012
 === === =====
 General Motors Corporation
 Summary Corporate Financial Results
 First Quarter
 2002
 -------------
 (Dollars in millions) Reported Special Items Adjusted
 -------- ------------ --------
 Net income
 GMNA $654 - $654
 GME (532) 407 (125)
 GMLAAM (40) - (40)
 GMAP 7 - 7
 --- --- ---
 Total GMA 89 407 496
 Hughes (1) (156) 10 (146)
 Other (142) - (142)
 --- --- ---
 Total ACO (209) 417 208
 --- --- ---
 GMAC 439 - 439
 Other Financing (2) - (2)
 --- --- ---
 Total FIO 437 - 437
 --- --- ---
 Net income (loss) $228 417 $645
 === === ===
 Income tax expense
 (benefit)
 GMNA $272 - $272
 GME (260) 234 (26)
 GMLAAM (1) - (1)
 GMAP - - -
 --- --- ---
 Total GMA $11 234 $245
 Hughes (92) 7 (85)
 Other (79) - (79)
 --- --- ---
 Total ACO (160) 241 81
 --- --- ---
 GMAC 285 - 285
 Other Financing - - -
 --- --- ---
 Total FIO 285 - 285
 --- --- ---
 Income tax expense
 (benefit) $125 241 $366
 === === ===
 Effective tax rate
 GMNA 29.0% - 29.0%
 GME 32.6% 36.5% 16.6%
 GMLAAM 2.4% - 2.4%
 GMAP - - -
 Hughes 39.8% 41.2% 39.7%
 GMAC 38.7% - 38.7%
 Total GM Corp. 35.3% 36.6% 36.2%
 Equity income (loss)
 and minority interests
 GMNA $(12) - $(12)
 GME 6 - 6
 GMLAAM - - -
 GMAP 20 - 20
 -- -- --
 Total GMA $14 - $14
 == == ==
 See footnotes.
 General Motors Corporation
 Operating Statistics
 First Quarter
 -------------
 2003 2002
 ---- ----
 (units in thousands)
 Worldwide Wholesale Sales
 United States - Cars 500 499
 United States - Trucks 756 667
 ----- -----
 Total United States 1,256 1,166
 Canada, Mexico, and Other 182 196
 ----- -----
 Total GMNA 1,438 1,362
 GME 427 424
 GMLAAM 121 155
 GMAP 142 108
 ----- -----
 Total Worldwide 2,128 2,049
 ===== =====
 Vehicle Unit Deliveries
 Chevrolet - Cars 171 185
 Chevrolet - Trucks 373 465
 Pontiac 107 118
 GMC 108 127
 Buick 83 83
 Oldsmobile 33 43
 Saturn 75 57
 Cadillac 46 40
 Other 22 12
 ----- -----
 Total United States 1,018 1,130
 Canada, Mexico, and Other 151 178
 ----- -----
 Total GMNA 1,169 1,308
 GME 473 465
 GMLAAM 128 139
 GMAP 166 159
 ----- -----
 Total Worldwide 1,936 2,071
 ===== =====
 Market Share
 United States - Cars 24.9% 24.7%
 United States - Trucks 28.2% 31.4%
 Total United States 26.6% 28.2%
 Total North America 26.1% 28.0%
 Total Europe 9.6% 9.2%
 Total LAAM 15.8% 15.3%
 Asia and Pacific 4.1% 4.4%
 Total Worldwide 13.6% 14.5%
 U.S. Fleet Deliveries %
 % Fleet Sales - Cars 30.3% 24.9%
 % Fleet Sales - Trucks 14.7% 10.3%
 Total Vehicles 21.6% 16.4%
 Retail Lease as % of Retail Sales
 Total Smartlease and Smartbuy 13.9% 9.7%
 Days Supply of Inventory at March 31
 United States - Cars 88 73
 United States - Trucks 109 75
 GMNA Capacity Utilization
 (2 shift rated) 91.1% 83.2%
 GMNA Net Price (3.2%) (1.0%)
 General Motors Corporation
 Operating Statistics
 First Quarter
 -------------
 2003 2002
 ---- ----
 GMAC's U.S. Cost of Borrowing 3.53% 4.32%
 Current Debt Spreads Over U.S.
 Treasuries
 2 Year 290 bp 170 bp
 5 Year 310 bp 180 bp
 10 Year 350 bp 205 bp
 Worldwide Employment at
 March 31, Excluding Contract (in 000's)
 United States Hourly 121 124
 United States Salary 41 42
 --- ---
 Total United States 162 166
 Canada, Mexico, and Other 32 33
 --- ---
 GMNA 194 199
 GME 66 71
 GMLAAM 23 23
 GMAP 12 11
 Hughes 9 13
 GMAC 31 30
 Other 7 12
 --- ---
 Total 342 359
 === ===
 Worldwide Payrolls ($Mil's) $5,388 $5,040
 Footnotes:
 ---------
 (1) Excludes Hughes Series A Preferred Stock dividends paid
 to General Motors and Hughes write off of goodwill for
 DirecTV Latin America and DirecTV Broadband recorded as
 a cumulative effect of accounting change in the first
 quarter of 2002 in Hughes' stand alone financial
 statements. In accordance with SFAS 142, GM evaluated
 the carrying value of goodwill associated with its
 Direct-to-Home Broadcast reporting unit in the aggregate
 and determined that the goodwill was not impaired.
 GENERAL MOTORS CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
 March 31,
 --------------------
 2003 2002
 ---- ----
 (dollars in millions
 except per share
 amounts)
 Total net sales and revenues $49,365 $46,214
 ------ ------
 Cost of sales and other expenses 39,383 38,401
 Selling, general, and administrative expenses 5,706 5,601
 Interest expense 2,128 1,858
 ------- -------
 Total costs and expenses 47,217 45,860
 Income before income taxes and minority interests 2,148 354
 Income tax expense 656 125
 Equity income (loss) and minority interests (9) (1)
 ----- -----
 Net income 1,483 228
 Dividends on preference stocks - (24)
 ----- ---
 Earnings attributable to common stocks $1,483 $204
 ===== ===
 Basic earnings (losses) per share attributable to
 common stocks
 Earnings per share attributable to $1-2/3 par value $2.71 $0.58
 ==== ====
 Earnings per share attributable to Class H $(0.04) $(0.14)
 ==== ====
 Earnings (losses) per share attributable to common
 stocks assuming dilution
 Earnings per share attributable to $1-2/3 par value $2.71 $0.57
 ==== ====
 Earnings per share attributable to Class H $(0.04) $(0.14)
 ==== ====
 GENERAL MOTORS CORPORATION AND SUBSIDIARIES
 SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
 March 31,
 --------------------
 2003 2002
 ---- ----
 (dollars in
 millions)
 AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER
 OPERATIONS
 Total net sales and revenues $42,042 $39,773
 ------- ------
 Cost of sales and other expenses 37,313 36,211
 Selling, general, and administrative expenses 3,341 3,690
 ------- -------
 Total costs and expenses 40,654 39,901
 ------ ------
 Interest expense 321 162
 Net expense from transactions with
 Financing and Insurance Operations 41 90
 ------ ----
 Income (loss) before income taxes and minority
 interests 1,026 (380)
 Income tax expense (benefit) 226 (160)
 Equity income (loss) and minority interests 1 11
 ----- ----
 Net income (loss) - Automotive, Communications
 Services, and Other Operations $801 $(209)
 === ===
 FINANCING AND INSURANCE OPERATIONS
 Total revenues $7,323 $6,441
 ----- -----
 Interest expense 1,807 1,696
 Depreciation and amortization expense 1,506 1,361
 Operating and other expenses 2,177 1,905
 Provisions for financing and insurance losses 752 835
 ------ ------
 Total costs and expenses 6,242 5,797
 ----- -----
 Net income from transactions with Automotive,
 Communications Services, and Other Operations (41) (90)
 --------- ----
 Income before income taxes and minority interests 1,122 734
 Income tax expense 430 285
 Equity income/(loss) and minority interests (10) (12)
 ---- ---
 Net income - Financing and Insurance Operations $682 $437
 === ===
 The above supplemental Information is intended to facilitate
 analysis of General Motors Corporation's businesses: (1)
 Automotive, Communications Services, and Other Operations;
 and (2) Financing and Insurance Operations.
 GENERAL MOTORS CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 Mar. 31, Dec. 31, Mar. 31,
 2003 2002 2002
 (Unaudited) (Unaudited)
 --------- ------- ---------
 ASSETS (dollars in millions)
 Cash and cash equivalents $26,982 $21,449 $19,049
 Marketable securities 16,841 16,825 13,282
 ------ ------ ------
 Total cash and marketable securities 43,823 38,274 32,331
 Finance receivables - net 141,273 134,647 112,686
 Accounts and notes receivable (less
 allowances) 16,209 15,715 11,091
 Inventories (less allowances) 10,769 9,967 9,802
 Deferred income taxes 39,000 39,865 28,677
 Equipment on operating leases - (less
 accumulated depreciation) 36,997 32,988 32,378
 Equity in net assets of nonconsolidated
 associates 4,976 5,044 4,871
 Property - net 37,681 37,514 35,512
 Intangible assets - net 17,975 17,954 16,972
 Other assets 33,733 37,028 40,360
 ------ ------- -------
 Total assets $382,436 $368,996 $324,680
 ======= ======= =======
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Accounts payable (principally trade) $28,738 $27,452 $27,465
 Notes and loans payable 211,726 201,940 166,470
 Postretirement benefits other than
 pensions 38,239 38,187 38,586
 Pensions 22,536 22,762 11,113
 Deferred income taxes 7,342 7,178 6,318
 Accrued expenses and other liabilities 63,654 63,829 54,386
 -------- ------- ------
 Total liabilities 372,235 361,348 304,338
 Minority interests 835 834 766
 Stockholders' equity
 $1-2/3 par value common stock
 (outstanding, 560,616,422;
 560,447,797; and 560,021,275 shares) 934 936 934
 Class H common stock (outstanding,
 1,107,517,793; 958,284,272;
 and 877,777,148 shares) 111 96 88
 Capital surplus (principally additional
 paid-in capital) 22,808 21,583 21,589
 Retained earnings 11,234 10,031 9,387
 ------ ------ -----
 Subtotal 35,087 32,646 31,998
 Accumulated foreign currency translation
 adjustments (2,665) (2,784) (3,014)
 Net unrealized loss on derivatives (196) (205) (256)
 Net unrealized gains on securities 344 372 428
 Minimum pension liability adjustment (23,204) (23,215) (9,580)
 ------ ------ -------
 Accumulated other comprehensive loss (25,721) (25,832) (12,422)
 ------ ------ ------
 Total stockholders' equity 9,366 6,814 19,576
 ------- ------- -------
 Total liabilities and stockholders'
 equity $382,436 $368,996 $324,680
 ======= ======= =======
 GENERAL MOTORS CORPORATION AND SUBSIDIARIES
 SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
 Mar. 31, Dec. 31, Mar. 31,
 2003 2002 2002
 (Unaudited) (Unaudited)
 --------- ------ ---------
 ASSETS (dollars in millions)
 Automotive, Communications Services, and
 Other Operations
 Cash and cash equivalents $16,977 $13,291 $14,656
 Marketable securities 3,239 2,174 781
 ------- ------- --------
 Total cash and marketable securities 20,216 15,465 15,437
 Accounts and notes receivable (less
 allowances) 6,085 5,861 5,957
 Inventories (less allowances) 10,769 9,967 9,802
 Equipment on operating leases - (less
 accumulated depreciation) 5,661 5,305 3,675
 Deferred income taxes and other current
 assets 10,957 10,816 7,974
 ------ ------ -------
 Total current assets 53,688 47,414 42,845
 Equity in net assets of nonconsolidated
 associates 4,976 5,044 4,871
 Property - net 35,856 35,693 33,888
 Intangible assets - net 14,637 14,611 13,745
 Deferred income taxes 30,473 31,431 22,826
 Other assets 7,753 7,781 17,494
 ------- ------- --------
 Total Automotive, Communications
 Services, and Other Operations assets 147,383 141,974 135,669
 Financing and Insurance Operations
 Cash and cash equivalents 10,005 8,158 4,393
 Investments in securities 13,602 14,651 12,501
 Finance receivables - net 141,273 134,647 112,686
 Investment in leases and other
 receivables 39,476 35,517 31,794
 Other assets 30,697 34,049 27,637
 Net receivable from Automotive,
 Communications Services, and
 Other Operations 486 1,089 477
 ------- ------- ------
 Total Financing and Insurance Operations
 assets 235,539 228,111 189,488
 ------- ------- -------
 Total assets $382,922 $370,085 $325,157
 ======= ======= =======
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Automotive, Communications Services, and
 Other Operations
 Accounts payable (principally trade) 21,659 $20,169 $19,367
 Loans payable 815 1,516 1,591
 Accrued expenses 41,718 40,518 34,352
 Net payable to Financing and Insurance
 Operations 486 1,089 477
 -------- ------- --------
 Total current liabilities 64,678 63,292 55,787
 Long-term debt 19,228 16,651 16,797
 Postretirement benefits other than
 pensions 34,291 34,275 34,719
 Pensions 22,481 22,709 11,072
 Other liabilities and deferred income
 taxes 15,307 15,461 13,741
 -------- -------- --------
 Total Automotive, Communications
 Services, and Other Operations
 liabilities 155,985 152,388 132,116
 Financing and Insurance Operations

 Accounts payable 7,079 7,283 8,098
 Debt 191,683 183,773 148,082
 Other liabilities and deferred income
 taxes 17,974 18,993 16,519
 -------- ------- --------
 Total Financing and Insurance Operations
 liabilities 216,736 210,049 172,699
 ------- ------- -------
 Total liabilities 372,721 362,437 304,815
 Minority interests 835 834 766
 Stockholders' equity
 $1-2/3 par value common stock
 (outstanding, 560,616,422;
 560,447,797; and 560,021,275 shares) 934 936 934
 Class H common stock (outstanding,
 1,107,517,793; 958,284,272;
 and 877,777,148 shares) 111 96 88
 Capital surplus (principally additional
 paid-in capital) 22,808 21,583 21,589
 Retained earnings 11,234 10,031 9,387
 ------ ------ --------
 Subtotal 35,087 32,646 31,998
 Accumulated foreign currency translation
 adjustments (2,665) (2,784) (3,014)
 Net unrealized loss on derivatives (196) (205) (256)
 Net unrealized gains on securities 344 372 428
 Minimum pension liability adjustment (23,204) (23,215) (9,580)
 ------ ------ ------
 Accumulated other comprehensive loss (25,721) (25,832) (12,422)
 ------ ------ ------
 Total stockholders' equity 9,366 6,814 19,576
 ------- ------- -------
 Total liabilities and stockholders'
 equity $382,922 $370,085 $325,157
 ======= ======= =======
 The above supplemental Information is intended to facilitate
 analysis of General Motors Corporation's businesses: (1)
 Automotive, Communications Services, and Other Operations;
 and (2) Financing and Insurance Operations.
 GENERAL MOTORS CORPORATION AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Three Months Ended
 March 31,
 ------------------------
 2003 2002
 ---- ----
 (dollars in millions)
 Net cash provided by (used in) operating
 activities $10,055 $7,707
 Cash flows from investing activities
 Expenditures for property (1,686) (1,904)
 Investments in marketable securities -
 acquisitions (2,830) (12,883)
 Investments in marketable securities -
 liquidations 2,906 12,182
 Net change in mortgage servicing rights (461) (551)
 Increase in finance receivables (33,775) (32,185)
 Proceeds from sales of finance receivables 23,446 28,196
 Operating leases - acquisitions (3,661) (2,991)
 Operating leases - liquidations 2,510 2,307
 Investments in companies, net of cash
 acquired (32) (161)
 Proceeds from sale of business units 1,076 -
 Other (504) 318
 ------ -----
 Net cash (used in) provided by investing
 activities (13,011) (7,672)
 ------ -----
 Cash flows from financing activities
 Net decrease in loans payable (585) (6,391)
 Long-term debt - borrowings 19,391 13,667
 Long-term debt - repayments (10,066) (6,543)
 Proceeds from issuing common stocks - 50
 Proceeds from sales of treasury stocks - 19
 Cash dividends paid to stockholders (280) (304)
 ----- -----
 Net cash provided by (used in) financing
 activities 8,460 498
 ----- ---
 Effect of exchange rate changes on cash and
 cash equivalents 29 (39)
 -- ----
 Net increase (decrease) in cash and cash
 equivalents 5,533 494
 Cash and cash equivalents at beginning of
 the period 21,449 18,555
 ------ ------
 Cash and cash equivalents at end of the
 period $26,982 $19,049
 ====== ======
 GENERAL MOTORS CORPORATION AND SUBSIDIARIES
 SUPPLEMENTAL INFORMATION TO THE CONDENSED CONSOLIDATED STATEMENTS OF
 CASH FLOWS
 (Unaudited)
 Automotive, Comm. Financing and
 Serv. and Other Insurance
 ----------------- --------------
 Three Months Ended March 31,
 ------------------------------------
 2003 2002 2003 2002
 ---- ---- ---- ----
 (dollars in millions)
 Net cash provided by (used in)
 operating activities $4,681 $3,762 $5,374 $3,945
 Cash flows from investing activities
 Expenditures for property (1,582) (1,888) (104) (16)
 Investments in marketable securities
 - acquisitions (1,155) (399) (1,675) (12,484)
 Investments in marketable securities
 - liquidations 90 408 2,816 11,774
 Net change in mortgage servicing
 rights - - (461) (551)
 Increase in finance receivables - - (33,775) (32,185)
 Proceeds from sales of finance
 receivables - - 23,446 28,196
 Operating leases - acquisitions - - (3,661) (2,991)
 Operating leases - liquidations - - 2,510 2,307
 Investments in companies, net of cash
 acquired (32) (39) - (122)
 Proceeds from sale of business units 1,076 - - -
 Other (306) 524 (198) (206)
 ----- --- ------ -----
 Net cash (used in) provided by
 investing activities (1,909) (1,394) (11,102) (6,278)
 ------ ----- ------- -----
 Cash flows from financing activities
 Net increase (decrease) in loans
 payable (733) (811) 148 (5,580)
 Long-term debt - borrowings 2,566 6,414 16,825 7,253
 Long-term debt - repayments (36) (392) (10,030) (6,151)
 Proceeds from issuing common stocks - 50 - -
 Proceeds from sales of treasury stocks - 19 - -
 Cash dividends paid to stockholders (280) (304) - -
 ----- ----- ----- ------
 Net cash provided by (used in)
 financing activities 1,517 4,976 6,943 (4,478)
 ----- ----- ----- ------
 Effect of exchange rate changes on
 cash and cash equivalents 1 (40) 28 1
 Net transactions with
 Automotive/Financing Operations (604) (1,080) 604 1,080
 ----- ----- --- -----
 Net increase (decrease) in cash and
 cash equivalents 3,686 6,224 1,847 (5,730)
 Cash and cash equivalents at
 beginning of the period 13,291 8,432 8,158 10,123
 ------ ------- ----- ------
 Cash and cash equivalents at end of
 the period $16,977 $14,656 $10,005 $4,393
 ====== ====== ====== =====
 The above supplemental Information is intended to facilitate
 analysis of General Motors Corporation's businesses: (1)
 Automotive, Communications Services, and Other Operations;
 and (2) Financing and Insurance Operations.


CONTACT: Toni Simonetti, +1-212-418-6380, or Jerry Dubrowski, +1-212-418-6261, both of General Motors Corporation

Web site: http://media.gm.com/

Web site: http://www.gm.com/
COPYRIGHT 2003 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Geographic Code:4EUGE
Date:Apr 15, 2003
Words:6578
Previous Article:DC Comics' Justice League Characters Power Their Way Into Burger King(R) Restaurants Nationwide.
Next Article:Federal-Mogul Demonstrates Latest Sleeving and Electromagnetic Interference Protection Technologies at MRO Conference and Exhibition 2003.
Topics:


Related Articles
HUGHES ANNOUNCES THIRD QUARTER EARNINGS
General Motors Earns $1.5 Billion Or $2.63 Per Share In Second Quarter, Excluding Special Items And Hughes; -- Reported Net Income Totals $1.3...
-- GM Earned $696 Million, Or $1.24 Per Share, Excluding Special Items And Hughes.
For 2002, GM Earned $1.7 Billion, or $3.35 Per Share; -- Excluding Hughes and special items, $3.9 billion, or $6.98 per share.
GM Reports Second Quarter Financial Results; - Net income of $901 million, or $1.58 per share - Adjusted net income of $879 million, or $1.57 per...
GM Reports Third Quarter Net Income of $425 Million, or $0.79 Per Share; Adjusted net income $448 million, or $0.80 per share, excluding Hughes.
GM Earns $3.8 Billion, or $7.14 Per Share in 2003 -- Adjusted EPS of $5.62; Fourth Quarter Earnings $1.0 Billion, or $2.13 Per Share -- Adjusted EPS...
Ford Announces First Quarter Financial Results; * Net income of 94 cents per share, or $2 billion.
Boeing Reports Quarterly Results and Raises Outlook.
Boeing Reports Third-Quarter Results and Raises Forecast for 2004.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters