EX-99.1 2 q22019earnings08012019.htm EXHIBIT 99.1 - 2019 Q2 EARNINGS RELEASE
Exhibit 99.1 SECOND-QUARTER 2019 EARNINGS GM Reports Income of $2.4 Billion and EBIT-adjusted of $3.0 Billion • Strong North America EBIT-adj. margin of 10.7%, driven by the successful rollout of full-size light-duty pickup trucks. • GM’s all-new heavy-duty pickups began shipping at the end of Q2 with growth potential throughout Q3 and Q4. • Significant progress on transformational cost initiatives with $1.1 billion in savings achieved year-to-date. Q2 2019 RESULTS OVERVIEW Net Revenue Income Auto Operating Cash Flow EPS-Diluted GAAP $36.1 B $2.4 B $3.8 B $1.66 vs. Q2 2018 (1.9)% 1.6% $(0.2) B Equal EBIT-adj. Margin EBIT-adj. Adj. Auto FCF EPS-Diluted-adj. Non-GAAP 8.4% $3.0 B $2.5 B $1.64 vs. Q2 2018 (0.3) pts (5.6)% $(0.1) B (9.4)% EPS-diluted and EPS-diluted-adj. includes $(0.01) from Lyft and PSA revaluations. Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come. We will continue operating our business with discipline, and the vision needed to deliver a stronger future for our employees, customers and shareholders.” – Mary Barra, Chairman and CEO PICKUP“ TRUCKS: LIGHT-DUTY LEADERSHIP GM’s cadenced full-size pickup truck launch remains on track, with sales of the all-new Chevrolet Silverado and GMC Sierra light-duty crew cabs up double digits year- over-year for the second straight quarter. Overall, GM’s light-duty pickups gained nearly 3 percentage points of retail share from Q1 to Q2, and remained the retail market share leader in the segment (J.D. Power). Full production of all cab styles—including more afordable 2020 Chevrolet Corvette Stingray was revealed July 18. regular and double cabs—started in March, helping normalize availability of the entire lineup. ALL-NEW 2020 MID-ENGINE CORVETTE DEBUTS In July, GM unveiled the 2020 Chevrolet Corvette GM’s all-new heavy-duty pickups launched in June, Stingray, the company’s frst-ever production mid- with early production focused on HD crew cab models, engine Corvette, to a global audience of nearly similar to the light-duty launch cadence. With the 300,000 in 157 countries. The Stingray incorporates previously announced 40,000 unit additional capacity new technologies, such as GM’s all-new digital vehicle at Flint Assembly, the company is poised for signifcant platform, that the company will use for future vehicles. growth in this proftable segment. In anticipation of strong customer demand, the company is increasing production of the new model, adding a second shift and more than 400 hourly jobs at its Bowling Green Assembly plant in Kentucky. Since 2011, GM has invested more than $900 million in this facility. The Corvette will start under $60,000, making it the frst afordable V-8 mid-engine supercar. Corvettes will The all-new 2020 Chevrolet Silverado 2500 HD Z71. begin arriving at dealerships late in the fourth quarter.

“ SEGMENT RESULTS (EBIT-ADJUSTED - $B) North America International GM Cruise GM Financial (EBT) Q2 19 Q2 18 Q2 19 Q2 18 Q2 19 Q2 18 Q2 19 Q2 18 3.0 2.7 (0.0) 0.1 (0.3) (0.2) 0.5 0.5 GM’s all-new light-duty Lower earnings due to a Completed new funding Revenue of $3.6 billion in the trucks, crossovers and $400-million decline in round and announced second quarter was a record. transformational cost China income from a record plans to launch in San Continued portfolio growth savings drove a strong Q2 2018, partially ofset by Francisco (see below). Since contributed to EBT results. 10.7% EBIT-adj. margin. better performance outside 2016, Cruise has increased of China. its staf from 40 to 1,500. We had a solid second quarter, and expect the second half of the year to be stronger than the frst half. Our confdence in our full-year outlook is based on our strong full-size truck rollout, other key launches and ongoing cost savings.” – Dhivya Suryadevara, CFO Q2“ SALES HIGHLIGHTS CRUISE UPDATE GM delivered 747,000 vehicles in the U.S., led by After a new equity raise in May of $1.15 billion which crossover sales which set a Q2 record with a 17-percent raised its valuation to $19 billion, in July Cruise increase year-over-year. The Chevrolet Equinox and announced actions to advance its plans toward launch Traverse set Q2 records; every Buick crossover was up in San Francisco. To deploy at large scale, Cruise will year-over-year; the GMC Acadia posted its best frst signifcantly increase its testing and validation miles half ever; and the all-new Cadillac XT4 continued to over the balance of 2019; increase community lead its segment. U.S. retail market share is estimated engagement through advertising and live events; to be fat compared to a year ago, with trucks and and continue work on the development of a purpose- crossovers ofsetting lower passenger car sales. built autonomous vehicle – the efort of hundreds of talented Cruise, GM and Honda engineers. This vehicle GM China sold 754,000 vehicles in the second quarter, will completely re-imagine the customer about 100,000 fewer than the previous year’s quarter, experience from the ground up. due to an overall market decline, segment shifts and lower demand for outgoing models. For details on U.S. INVESTMENTS IN PLANTS AND PEOPLE GM’s global sales, click here. In June, GM announced investments at its Fort Wayne, Flint and Arlington plants to support production expansion for its full-size truck and SUV facilities, bringing investment totals to more than $4.2 billion to prepare for its next-generation truck launches. GM’s new trucks are also driving investments at plants in Moraine, Ohio to expand diesel engine output and in Toledo, Ohio to expand 10- speed transmission production. These investments The Cadillac XT5 remains Cadillac’s best-selling vehicle globally. support more than 15,000 hourly jobs at these plants. CHINA INDUSTRY EXPECTED TO REMAIN WEAK To date, 1,700 of 2,800 hourly employees impacted by Due to China’s economic slowdown, China industry transformation actions have been placed in new jobs. unit sales are expected to remain weak through the Positions are available for all impacted hourly workers second half of the year, with industry deliveries at plants supporting growth segments. projected to be down for the full year. SUPER CRUISE EXPANDS HIGHWAY NETWORK GM China expects to beneft from about 20 new In June, Cadillac announced the expansion of Super vehicle launches, the majority of which will go on sale Cruise to an additional 70,000 miles of compatible later in the year. Nearly two thirds of the launches in highways in the U.S. and Canada. By year end, it will the second half are SUVs. However, GM expects equity be available on more than 200,000 total miles of income in the second half of the year to be generally compatible highways. More than 3 million miles have in line with the frst half, due to ongoing headwinds. been driven by customers using Super Cruise since its introduction.

MEDIA CONTACT INVESTOR CONTACT Tom Henderson Michael Heifler GM Finance Communications GM Investor Relations Media Investors 313-410-2704 313-418-0220 tom.e.henderson@gm.com michael.heifler@gm.com General Motors (NYSE:GM) is committed to delivering safer, better and more sustainable ways for people to get around. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Cadillac, Chevrolet, Baojun, Buick, GMC, Holden, Jiefang and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, Maven, its personal mobility brand, and Cruise, its autonomous vehicle business, can be found at gm.com. Cautionary Note on Forward-Looking Statements: This press release may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers not to place undue reliance on forward-looking statements. Statements including words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “efect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions to identify forward-looking statements represent our current judgment about possible future events. In making these statements we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we consider appropriate under the circumstances. These statements are not guarantees of future performance; they involve risks and uncertainties and actual events or results may difer materially from these statements. Factors that might cause such diferences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond our control and are described in our Annual Report on Form 10-K for the year ended December 31, 2018, as well as additional factors we may describe from time to time in other flings with the U.S. Securities and Exchange Commission. We undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that afect the subject of these statements, except where we are expressly required to do so by law. Basis of Presentation: The fnancial and operational information included in this press release relate to our continuing operations and not our discontinued operations, which consist of the Opel and Vauxhall businesses and certain other assets in Europe and the European fnancing subsidiaries and branches that were sold in 2017.