!NEW! GM Reports Solid First Quarter Operating Performance

Reaffirms 2015 outlook

• EBIT-adjusted of $2.1 billion, up $0.3 billion from Q1 2014, excluding recalls
• Repurchased 10 million shares for approximately $0.4 billion
• GM North America EBIT-adjusted best since company was established in 2009, expanding core operating margin for seventh straight quarter year over year
• GM Europe increased Opel/Vauxhall share in 11 markets and improved operating performance, despite Russia market challenges
• First quarter net income of $0.9 billion, up $0.8 billion from first quarter 2014
• EPS of $0.56, EPS adjusted for special items of $0.86

General Motors Co. (NYSE: GM) today announced first quarter net income attributable to common stockholders of $0.9 billion, or $0.56 per diluted share. The current quarter included a net loss from special items of $0.5 billion, or $(0.30) per diluted share.

Special items in the quarter included $0.4 billion related to the decision to change the company’s business model in Russia and $0.1 billion for an adjustment to the estimated costs of the ignition switch compensation program.

In the first quarter of 2014, GM’s net income attributable to common stockholders was $0.1 billion, or $0.06 per diluted share, including a net loss from special items of $0.4 billion or $(0.23) per diluted share, and the impact of recall-related pre-tax costs of $1.3 billion, or $(0.48) per diluted share.

Earnings before interest and tax (EBIT) adjusted was $2.1 billion and included the impact of $0.1 billion in restructuring costs. This compares to the first quarter of 2014, when the company recorded EBIT-adjusted of $0.5 billion, which included recall-related pre-tax costs of $1.3 billion and $0.3 billion in restructuring costs.

Net revenue in the first quarter of 2015 was $35.7 billion, compared to $37.4 billion in the first quarter of 2014.  

“Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year,” said GM CEO Mary Barra. “Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value.”

GM Results Overview (in billions except for per share amounts and ROIC)

	Q1 2015	Q1 2014
Revenue	$35.7	$37.4
Net income attributable to common stockholders	$0.9	$0.1
Earnings per share (EPS) diluted	$0.56	$0.06
Impact of special items on EPS diluted	$(0.30)	$(0.23)
EBIT-adjusted	$2.1	$0.5
Automotive net cash flow from operating activities	$0.0	$2.0
Adjusted automotive free cash flow	$(1.7)	$0.2
% Return on Invested Capital (ROIC)	19.5	16.9

Segment Results

• GM North America reported EBIT-adjusted of $2.2 billion. This compares with EBIT-adjusted of $0.6 billion in the first quarter of 2014, which included the impact of a $1.3 billion pre-tax charge for recall costs.
• GM Europe reported EBIT-adjusted of $(0.2) billion. This compares with EBIT-adjusted of $(0.3) billion in the first quarter of 2014, which included
  $0.2 billion for restructuring costs.
• GM International Operations reported EBIT-adjusted of $0.4 billion, compared with EBIT-adjusted of $0.3 billion in the first quarter of 2014.
• GM South America reported EBIT-adjusted of $(0.2) billion, approximately equal to the first quarter of 2014.  
• GM Financial reported earnings before tax of $0.2 billion, matching its results for the first quarter of 2014. 

“Key vehicles like our recently launched full and mid-size trucks, and our cost discipline helped us deliver a solid quarter,” said Chuck Stevens, GM executive vice president and chief financial officer. “We continue to take decisive actions to address issues head-on and to drive the company to generate strong results.”

Cash Flow, Capital Return, Liquidity and ROIC

First quarter automotive cash flow from operating activities of $0.0 billion and adjusted automotive free cash flow of $(1.7) billion, were down from $2.0 billion and $0.2 billion a year ago, respectively. The declines in automotive operating and adjusted automotive free cash flows were primarily related to one extra weekly payment cycle to suppliers during the quarter compared with the same quarter a year ago, and cash payments related to recalls and restructuring.

Since announcing its $5 billion common stock repurchase program on March 9, 2015, GM has repurchased 19.4 million shares through April 21. Of this total, 10 million shares were repurchased through the March 31 trading date for approximately $0.4 billion. Additionally, GM paid common stock dividends of approximately $0.5 billion to shareholders during the quarter.

GM ended the quarter with strong total automotive liquidity of $34.2 billion.  Automotive cash and marketable securities was $22.1 billion compared with $25.2 billion at year-end 2014.

As previously announced, GM will reinvest in its business with the objective of driving 20 percent or higher average return on invested capital (ROIC) through investments in world-class vehicles and leading technology. Beginning this quarter, the company will report trailing four quarter ROIC. On this basis, ROIC at the end of the quarter was 19.5 percent, compared to 16.9 percent at the end of the first quarter of 2014.

Based on its first quarter results, the company reaffirmed the 2015 annual outlook it communicated on January 14. GM expects its total EBIT adjusted and EBIT-adjusted margin to increase in 2015, compared to 2014, after adjusting 2014 for the impact of recall costs, with improved automotive results anticipated in all regions.

!NEW! GM Expects Improved Profitability in 2015

• Expects higher EBIT-adjusted and EBIT-adjusted margins in 2015
• Reaffirms previously announced 2016 targets and plan to achieve 9- to 10-percent margin by early next decade

General Motors Co. (NYSE: GM) expects its total earnings before interest and tax (EBIT) adjusted and EBIT-adjusted margin to increase in 2015, compared to 2014, after adjusting 2014 for the impact of recall costs. The company also anticipates improved automotive results in all regions.

This outlook is based on modest global industry growth expected in 2015, which will result primarily from continued growth in China, Europe and the United States, and ongoing launches of key vehicles.

CEO Mary Barra, President Dan Ammann, and Executive Vice President and Chief Financial Officer Chuck Stevens shared this outlook with investor analysts attending the Deutsche Bank 2015 Global Auto Industry Conference in Detroit. 

GM reiterated it is on track to meet its previously announced 2016 financial targets to achieve EBIT-adjusted margins in North America of 10 percent; to return to profitability in Europe, and to maintain strong margins in China.

The company also said its plan puts it on the path to achieve 9- to 10-percent margins by early next decade. The strategic plan, shared during the Global Business Conference in October 2014, includes several major initiatives: lead in product and technology; grow the Chevrolet and Cadillac brands globally; continue growing in China; continue growing GM Financial, and deliver core operating efficiencies.

“We had a pivotal year in 2014, outlining a customer-focused strategic plan for the company and delivering on our commitments by achieving strong core operating performance,” Barra said. “We’ll build on this momentum in 2015 and continue executing our plan to become the most-valued automotive company.”

Among key accomplishments for 2014, Barra noted the following:

• Earned the most J.D. Power Initial Quality Study awards for second consecutive year in the United States.
• Launched more models in North America with 4G LTE mobile broadband than all other automakers combined.
• GM and its joint ventures sold a record 3.5 million vehicles in China, up 12.0 percent from 2013.
• Opel/Vauxhall market share in Europe grew for the second year in a row, including increases in 12 European markets.
• Achieved five straight quarters of EBIT-adjusted margin growth in North America through the third quarter of 2014 (excluding recalls).
• Standard & Poor’s upgraded GM and GM Financial to investment grade.
• Returned $2.0 billion to common stock shareholders through dividends.

To support its future growth, GM plans to increase capital expenditures to approximately $9 billion in 2015, reflecting increased investments in products and technologies.

“Overall, 2014 was a very solid year in which we met expectations on core operating performance, despite a number of significant headwinds,” Stevens said.

“Importantly, improvements in 2015 will keep us firmly on track to meet our near-term objectives and demonstrate solid progress toward our targeted margins of 9 to 10 percent by early next decade.”