UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 20, 2005
GENERAL MOTORS CORPORATION
--------------------------
(Exact Name of Registrant as Specified in its Charter)
STATE OF DELAWARE 1-143 38-0572515
----------------- ----- ----------
(State or other jurisdiction of (Commission (I.R.S. Employer
Incorporation or Organization) File Number) Identification No.)
300 Renaissance Center, 48265-3000
Detroit, Michigan (Zip Code)
----------------------------------------------------------------------
(Address of Principal Executive Offices)
Registrant's telephone number, including area code (313) 556-5000
--------------
================================================================================
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS
On July 20, 2005, a news release was issued on the subject of second quarter
consolidated earnings for General Motors Corporation (GM). The news release did
not include certain financial statements, related footnotes and certain other
financial information that will be filed with the Securities and Exchange
Commission as part of GM's Quarterly Report on Form 10-Q. The following is the
second quarter earnings release for GM.
GM Reports Second-Quarter Financial Results
- Adjusted loss $0.56 per share, reported loss $0.51 per share
- GM North America posts loss, all other operating units profitable
- Global market share 15.2 percent, up 0.5 point
DETROIT - General Motors Corp. (NYSE: GM) today reported a loss of $318 million,
or $0.56 per diluted share, in the second quarter of 2005, excluding special
items and a tax-rate adjustment. These results compare with net income of $1.4
billion, or $2.42 per share, in the second quarter of 2004. Revenue was $48.5
billion, compared with $49.3 billion a year ago.
For the second quarter of 2005, GM reported a loss of $286 million, or $0.51 per
share, including special items. The special items include a $126-million
restructuring charge at GM Europe, and recognition of the recurring tax benefits
above those reflected in the 15-percent rate used in GM's adjusted earnings.
These items had a net favorable effect of $32 million, or $0.05 per share.
"Our second-quarter results reflect a mix of some important pluses and minuses,"
GM Chairman and Chief Executive Officer Rick Wagoner said. "On the positive
side, sales were up in all regions and global market share increased as our new
cars and trucks continued to gain traction and show strong customer acceptance.
In addition, financial results were positive in four of our operating units,
with GMAC and GM Latin America/Africa/Mid-East continuing their recent favorable
performance and GM Europe and GM Asia Pacific showing significant improvement
from the first quarter.
"But, importantly, on the minus side, GM North America's financial performance
continued to be very disappointing. While the results reflect a significant
reduction in U.S. dealer inventory, with second-quarter inventories down 349,000
units from mid-year 2004 and 224,000 units from the first quarter of 2005, they
also re-emphasize the need for us to significantly improve our cost structure in
all major areas - material costs, productivity, capacity utilization and
especially health care."
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).
GM Automotive Operations
GM's global-automotive operations reported a loss of $948 million in the second
quarter of 2005, as profitable results in Europe, Asia and the Latin
American/Mid-East region were more than offset by losses in North America. GM's
global-automotive operations earned $579 million in the prior-year period. GM's
global market share rose to 15.2 percent in the second quarter of 2005, compared
with 14.7 percent in the year-ago period, and worldwide deliveries were up more
than 10 percent.
GM North America (GMNA) reported a loss of $1.2 billion in the second quarter of
2005, compared with earnings of $355 million in the second quarter of 2004. GM's
market share in North America rose to 27.3 percent in the second quarter of
2005, up from 26.2 percent in the year-ago quarter.
GMNA's second-quarter 2005 results were adversely affected by lower production
volumes - down 142,000 units from the year-ago quarter, a less favorable product
mix and increased health-care costs. Sales were up as a result of improved
acceptance of new products and highly successful marketing programs. The
combination of lower production and stronger sales helped to significantly
reduce U.S. dealer inventories during the quarter to just over 1 million
vehicles.
"The inventory reduction in the second quarter is a real positive," Wagoner
said. "That, plus the strong sales of our new products like the Chevrolet Cobalt
and the Hummer H3 and the favorable results of the recent J.D. Power Initial
Quality and Vehicle Dependability reports, are indicators that our intense focus
on product excellence is paying dividends. We also continue to progress in the
re-tooling of our sales and marketing strategy, including the successful
value-based consumer marketing program in June.
2
"Where we are not yet making the progress we need is on the cost side of the
business. With the intense competitive conditions and pricing pressures
continuing in the North American market, it's clear that we need to move faster
in implementing the key cost reduction strategies that I outlined at our recent
Annual Meeting -- re-energizing our global sourcing efforts, improving U.S.
capacity utilization and achieving fully competitive productivity levels,"
Wagoner said. "Finally, our health-care cost situation remains an extreme burden
on our ability to compete; we continue to work intensely on solutions to this
crisis with our labor unions."
GM Europe (GME) reported earnings of $37 million in the second quarter of 2005,
compared with a loss of $45 million in the year-ago quarter. These results
reflect continued improvement in cost reduction and the favorable effects of the
company's restructuring efforts. GM's market share in Europe was 9.7 percent in
the second quarter of 2005, unchanged from the year-ago period.
"We're pleased to achieve our first profitable quarter in five years in Europe,
excluding restructuring costs, as GM Europe continues to make significant
progress in its turnaround plan," Wagoner said. "The Opel/Vauxhall Astra remains
a strong contributor to our overall results in Europe, and we're encouraged by
the positive reviews of the new Zafira. We still have work to do in Europe to
achieve sustainable profitability, but the improved results so far this year
indicate we're on the right track."
GM Asia Pacific (GMAP) earned $176 million in the second quarter of 2005, up
significantly from the $60 million in the first quarter of this year, but below
the $259 million earned in the year-ago quarter. GM's market share in the
Asia-Pacific region rose to 6.3 percent in the second quarter from 5.6 percent a
year ago, led by gains in China and Thailand. GM continues to turn in a solid
performance in China with sales growing 37 percent in the second quarter,
compared with an overall industry average of 17 percent. GM's market share in
China rose to 11.4 percent in the second quarter of 2005, up from 9.8 percent in
the year-ago period.
"Our performance in China continues to be encouraging, especially considering
our modest presence there just a few years ago," Wagoner said. "Going forward,
we intend to capitalize on our momentum in China and take full advantage of the
opportunities presented by this large and rapidly growing market. With the
rollout of additional new vehicles in the second half of the year and the
strength of our current lineup, we anticipate double-digit sales growth to
continue in the second half of 2005."
GM Daewoo Auto and Technology Co. delivered strong results in the second quarter
of 2005, with sales gains in both the domestic and international markets. During
the quarter GM increased its stake in GM Daewoo to 50.9 percent from 48.2
percent. As a result, GM has begun to consolidate GM Daewoo's financial results.
"GM Daewoo has rapidly become a valuable contributor to the GM family,
particularly with its growing role in GM product programs in the Asia Pacific
region and around the world," Wagoner said. "Our increased investment is
consistent with our strategy to further develop GM Daewoo as a major player in
our global product development system."
GM Latin America/Africa/Mid-East (GMLAAM) earned $33 million in the second
quarter of 2005, compared with net income of $10 million a year ago. The latest
results reflect higher sales volumes in most markets and continued progress on
cost reduction. GM's market share in the LAAM region rose to 18.3 percent in the
second quarter of 2005 from 17.1 percent a year ago.
"We're pleased with the overall results in the region, and particularly our
performance in the Mid-East and African areas, where GM's market share was up
2.8 percentage points in the second quarter of 2005," Wagoner said.
GMAC
General Motors Acceptance Corp. (GMAC) reported net income of $816 million in
the second quarter of 2005, compared with $846 million in the second quarter of
2004, as lower earnings from financing operations were partially offset by
increased earnings from mortgage and insurance operations.
"GMAC once again reported impressive earnings despite a difficult funding
environment and lower credit ratings," Wagoner said. "During the quarter,
Residential Capital Corp., the newly formed holding company for GMAC's
residential mortgage businesses, successfully completed its first global
funding, raising $4 billion in a private placement. Our ongoing objective for
GMAC is to ensure access to ample liquidity on a cost-competitive basis, while
maintaining and building the extensive mutual synergies between GMAC and GM."
3
GMAC's financing operations earned $378 million in the second quarter of 2005,
down from $452 million a year ago, reflecting lower net interest margins that
were partially offset by improved used vehicle prices and favorable credit
experience.
Mortgage operations earned $338 million in the second quarter of 2005, up from
the $319 million in the second quarter of 2004. GMAC's mortgage operations
benefited from gains on its investment portfolio and favorable net servicing
results. This was partially offset by increased borrowing costs and lower gains
on sales of loans.
Insurance operations reported earnings of $100 million in the second quarter of
2005, up from the $75 million in the second quarter of 2004. Continued
improvement in net underwriting revenue due to favorable loss experience
contributed to the increase in earnings quarter over quarter.
GMAC continued to maintain adequate liquidity, with a total of $22.2 billion in
cash and certain marketable securities as of June 30, 2005. GMAC also provided a
significant source of cash flow to GM through the payment of a $500 million
dividend in the second quarter, bringing total dividends paid to date in 2005 to
$1 billion.
Cash and Liquidity
Cash, marketable securities, and readily available assets of the Voluntary
Employees' Beneficiary Association (VEBA) trust, excluding financing and
insurance operations, totaled $20.2 billion at June 30, 2005, up from $19.8
billion on March 31, 2005. During the second quarter, GM withdrew $1 billion
from the VEBA trust to pay for retiree health care. On July 1, 2005, GM withdrew
an additional $1 billion from the VEBA.
# # #
In this press release and related comments by General Motors management, our use
of the words "expect," "anticipate," "estimate," "project," "forecast,"
"outlook," "target," "objective," "plan," "goal," "pursue," "on track," 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-20) 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.
4
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
(unaudited)
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 Year to Date
June 30, 2005 June 30, 2005
--------------- --------------
Net $1-2/3 Net $1-2/3
Income EPS Income EPS
------ ----- ------ -----
REPORTED
--------
Net income $(286) $(0.51) $(1,390) $(2.46)
=== ==== ===== ====
ADJUSTMENTS
-----------
Salaried Attrition Program (A) 148 0.26
Plant and Facility
Impairments (B) 84 0.15
GME Restructuring Charge (C) 126 0.22 548 0.97
Tax Items (D) (158) (0.27) (547) (0.97)
--- ---- --- ----
Subtotal (32) (0.05) 233 0.41
ADJUSTED
--------
--- ---- ----- ----
Adjusted Income $(318) $(0.56) $(1,157) $(2.05)
=== ==== ===== ====
(A) Salaried Attrition Program relates to voluntary early retirement
and other separation programs in the U.S. in the first quarter
of 2005.
(B) Plant and Facility Impairments relates to the first quarter 2005
write-down to fair market value of various plant assets in connection
with the cessation of production at the Lansing assembly plant.
(C) In the fourth quarter of 2004, GM Europe announced a restructuring
plan targeting a reduction in annual structural costs of an
estimated $600 million by 2006. A total reduction of 12,000
employees, including 10,000 in Germany, from 2005-2007 through
separation programs, early retirements, and selected outsourcing
initiatives is expected. The restructuring charge of $126 million
in the second quarter of 2005 relates to approximately 500
additional separations in the second quarter, as well as those
charges related to previous separations that are required to be
amortized over future periods. The year-to-date charge of $548
million also includes a separation cost of $422 million in the first
quarter of 2005, which related to approximately 5,650 people. The
Corporation's plan is on track and anticipates further separations
and associated charges in the remaining two quarters of 2005 and
into 2006 and 2007. The amount of such future separation charges
will be recognized in the respective periods, and will depend both
on the type of separations and associated workforce demographics.
(D) Tax Items relate to tax benefits (including the Medicare Part D
benefit in the U.S), in excess of GM's previously communicated
annual effective tax rate of 15%, which do not vary with the level
of pre-tax income. Adjusted loss reflects an effective tax rate of
15%.
5
General Motors Corporation
List of Special Items - After Tax
(dollars in millions except per share amounts)
(unaudited)
Restated Restated
Three Months Ended Year to Date
June 30, 2004 June 30, 2004
--------------- --------------
Net Net
Income EPS Income EPS
------ ----- ------ -----
REPORTED
--------
Net income $1,377 $2.42 $2,585 $4.54
===== ==== ===== ====
There were no special items in the three or six months
ended June 30, 2004.
6
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter Year to Date
-------------- --------------
Restated Restated
2005 2004 2005 2004
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and
revenues $48,512 $49,254 $94,285 $97,084
Adjusted $48,512 $49,254 $94,285 $97,084
Net income (loss) $(286) $1,377 $(1,390) $2,585
Adjusted $(318) $1,377 $(1,157) $2,585
Net margin
(Net income / Total net
sales and revenues) (0.6)% 2.8% (1.5)% 2.7%
Adjusted (0.7)% 2.8% (1.2)% 2.7%
Earnings (losses) per share
- basic
$1-2/3 par value $(0.51) $2.44 $(2.46) $4.58
Earnings (losses) per share
- diluted
$1-2/3 par value $(0.51) $2.42 $(2.46) $4.54
Earnings (losses) per share
- adjusted diluted
$1-2/3 par value $(0.56)(1) $2.42 $(2.05) $4.54
GM $1-2/3 par value average
shares outstanding (Mil's)
Basic shares 565 565 565 564
Diluted shares 565 568 565 569
Cash dividends per share
of common stocks
GM $1-2/3 par value $0.50 $0.50 $1.00 $1.00
See reconciliation of adjusted financial results on pages 9 - 14 and
footnotes on page 17.
7
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter Year to Date
-------------- --------------
2005 2004 2005 2004
---- ---- ---- ----
Book value per share of
common stocks at June 30
GM $1-2/3 par value $44.30 $49.11
Auto & Other total cash
& marketable securities
at June 30 ($Bil's) $16.0 $21.5
Readily-available assets
in VEBA $4.2(2) $3.5
---- ----
Total Auto & Other cash
& marketable securities
plus readily-available
assets in VEBA $20.2 $25.0
==== ====
Auto & Other Operations
($Mil's)
Depreciation $1,292 $1,441 $2,562 $2,589
Amortization of special
tools 803 774 1,619 1,500
Amortization of intangible
assets 13 9 23 16
----- ----- ----- -----
Total $2,108 $2,224 $4,204 $4,105
===== ===== ===== =====
GM's share of nonconsolidated
affiliates' net income (loss)
($Mil's)
Italy $11 $11 $32 $29
Japan $45 $53 $95 $159
China $99 $148 $132 $310
South Korea $25 $15* $17 $7*
* Restated; previously reported amounts for the second quarter and
year-to-date 2004 were $(8) and $(16), respectively.
See footnotes on page 17.
8
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004 2005 2004 2005 2004
---- ---- ---- ---- ---- ----
Total net sales
and revenues
GMNA $27,125 $29,429 $ - $ - $27,125 $29,429
GME 8,463 8,094 - - 8,463 8,094
GMLAAM 2,935 1,909 - - 2,935 1,909
GMAP 1,922 1,693 - - 1,922 1,693
------ ------ -- -- ------ ------
Total GMA 40,445 41,125 - - 40,445 41,125
Other(3) (267) 77 - - (267) 77
------ ------ -- -- ------ ------
Total Auto &
Other 40,178 41,202 - - 40,178 41,202
------ ------ -- -- ------ ------
GMAC 8,363 7,703 - - 8,363 7,703
Other Financing(3) (29) 349 - - (29) 349
------ ------ -- -- ------ ------
Total FIO 8,334 8,052 - - 8,334 8,052
------ ------ -- -- ------ ------
Total net sales
and revenues $48,512 $49,254 $ - $ - $48,512 $49,254
====== ====== == == ====== ======
Income (loss)
before income
taxes, equity
income, and
minority interests
GMNA $(1,414) $444 $ - $ - $(1,414) $444
GME (159) (96) 186 - 27 (96)
GMLAAM 52 11 - - 52 11
GMAP - 33 - - - 33
----- ----- --- -- ----- ---
Total GMA (1,521) 392 186 - (1,335) 392
Other (440) (248) - - (440) (248)
----- ----- --- -- ----- ---
Total Auto &
Other (1,961) 144 186 - (1,775) 144
----- ----- --- -- ----- -----
GMAC 1,212 1,346 - - 1,212 1,346
Other Financing (15) (24) - - (15) (24)
----- ----- --- -- ----- -----
Total FIO 1,197 1,322 - - 1,197 1,322
----- ----- --- -- ----- -----
Total income (loss)
before income
taxes, equity
income, and
minority
interests $(764) $1,466 $186 $ - $(578) $1,466
=== ===== === == === =====
See footnotes on page 17.
9
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004 2005 2004 2005 2004
---- ---- ---- ---- ---- ----
Net income (loss)
GMNA $(1,194) $355 $ - $ - $(1,194) $355
GME (89) (45) 126 - 37 (45)
GMLAAM 33 10 - - 33 10
GMAP 176 259 - - 176 259
--- --- -- -- --- ---
Total GMA (1,074) 579 126 - (948) 579
Other (20) (34) (158) - (178) (34)
--- --- --- -- --- ---
Total Auto &
Other (1,094) 545 (32) - (1,126) 545
----- --- -- -- ----- ---
GMAC 816 846 - - 816 846
Other Financing (8) (14) - - (8) (14)
--- --- -- -- --- ---
Total FIO 808 832 - - 808 832
--- ----- -- -- --- -----
Net income (loss) $(286) $1,377 $ (32) $ - $(318) $1,377
=== ===== == == === =====
Income tax expense
(benefit)
GMNA $(244) $67 - - $(244) $67
GME (50) (36) 60 - 10 (36)
GMLAAM 21 (2) - - 21 (2)
GMAP (4) (1) - - (4) (1)
--- --- -- -- --- ---
Total GMA (277) 28 60 - (217) 28
Other (417) (216) 158 - (259) (216)
--- --- --- -- --- ---
Total Auto &
Other (694) (188) 218 - (476) (188)
--- --- -- -- --- ---
GMAC 396 500 - - 396 500
Other Financing (7) (10) - - (7) (10)
--- --- --- -- --- ---
Total FIO 389 490 - - 389 490
--- --- --- -- --- ---
Income tax expense
(benefit) $(305) $302 $218 $ - $(87) $302
=== === === == === ===
10
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Second Quarter
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004 2005 2004 2005 2004
---- ---- ---- ---- ---- ----
Effective tax rate
Total GM Corp. 40% 21% 117% - 15% 21%
GMNA 17% 15% - - 17% 15%
GME 31% 38% 32% - 37% 38%
GMAC 33% 37% - - 33% 37%
Equity income (loss)
and minority interests
GMNA $(24) $(22) $ - $ - $(24) $(22)
GME 20 15 - - 20 15
GMLAAM 2 (3) - - 2 (3)
GMAP 172 225 - - 172 225
--- --- -- -- --- ---
Total GMA $170 $215 $ - $ - $170 $215
=== === == == === ===
11
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004 2005 2004 2005 2004
---- ---- ---- ---- ---- ----
Total net sales
and revenues
GMNA $52,503 $58,532 $ - $ - $52,503 $58,532
GME 16,420 15,637 - - 16,420 15,637
GMLAAM 5,234 3,742 - - 5,234 3,742
GMAP 3,616 3,292 - - 3,616 3,292
------ ------ -- -- ------ ------
Total GMA 77,773 81,203 - - 77,773 81,203
Other (292) 136 - - (292) 136
------ ------ -- -- ------ ------
Total Auto &
Other 77,481 81,339 - - 77,481 81,339
------ ------ -- -- ------ ------
GMAC 16,584 15,273 - - 16,584 15,273
Other Financing 220 472 - - 220 472
------ ------ -- -- ------ ------
Total FIO 16,804 15,745 - - 16,804 15,745
------ ------ -- -- ------ ------
Total net sales
and revenues $94,285 $97,084 $ - $ - $94,285 $97,084
====== ====== == == ====== ======
Income (loss)
before income
taxes, equity
income, and
minority interests
GMNA $(3,337) $1,019 $ 357 $ - $(2,980) $1,019
GME (1,034) (319) 857 - (177) (319)
GMLAAM 119 19 - - 119 19
GMAP (36) 46 - - (36) 46
----- --- ----- -- ----- ---
Total GMA (4,288) 765 1,214 - (3,074) 765
Other (885) (568) 13 - (872) (568)
----- --- ----- -- ----- ---
Total Auto &
Other (5,173) 197 1,227 - (3,946) 197
----- ----- ----- -- ----- -----
GMAC 2,318 2,558 - - 2,318 2,558
Other Financing (17) (25) - - (17) (25)
----- ----- ----- -- ----- -----
Total FIO 2,301 2,533 - - 2,301 2,533
----- ----- ----- -- ----- -----
Total income (loss)
before income
taxes, equity
income, and
minority
interests $(2,872) $2,730 $1,227 $ - $(1,645) $2,730
===== ===== ===== == ===== =====
12
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004 2005 2004 2005 2004
---- ---- ---- ---- ---- ----
Net income (loss)
GMNA $(2,754) $756 $ 224 $ - $(2,530) $756
GME (614) (161) 548 - (66) (161)
GMLAAM 79 11 - - 79 11
GMAP 236 534 - - 236 534
----- ----- --- -- ----- -----
Total GMA (3,053) 1,140 772 - (2,281) 1,140
Other 126 (151) (539) - (413) (151)
----- --- --- -- ----- ---
Total Auto &
Other (2,927) 989 233 - (2,694) 989
----- ----- --- -- ----- ---
GMAC 1,544 1,610 - - 1,544 1,610
Other Financing (7) (14) - - (7) (14)
----- ----- --- -- ----- -----
Total FIO 1,537 1,596 - - 1,537 1,596
----- ----- --- -- ----- -----
Net income (loss)$(1,390) $2,585 $ 233 $ - $(1,157) $2,585
===== ===== === == ===== =====
Income tax expense
(benefit)
GMNA $(648) $208 $ 133 $ - $(515) $208
GME (377) (121) 309 - (68) (121)
GMLAAM 43 3 - - 43 3
GMAP (17) 5 - - (17) 5
--- -- --- -- --- ---
Total GMA (999) 95 442 - (557) 95
Other (1,002) (420) 552 - (450) (420)
----- --- --- -- ----- ---
Total Auto &
Other (2,001) (325) 994 - 1,007 (325)
----- --- --- -- ----- ---
GMAC 771 946 - - 771 946
Other Financing (10) (11) - - (10) (11)
--- --- -- -- --- ---
Total FIO 761 935 - - 761 935
----- --- --- -- --- ---
Income tax expense
(benefit) $(1,240) $610 $994 $ - $(246) $610
===== === === == === ===
13
General Motors Corporation
Summary Corporate Financial Results
(unaudited)
Year to Date
2005 and 2004
--------------
(dollars in millions) Reported Special Items Adjusted
-------- ------------- --------
Restated Restated
2005 2004 2005 2004 2005 2004
---- ---- ---- ---- ---- ----
Effective tax rate
Total GM Corp. 43% 22% 81% - 15% 22%
GMNA 19% 20% 37% - 17% 20%
GME 36% 38% 36% - 38% 38%
GMAC 33% 37% - - 33% 37%
Equity income (loss)
and minority interests
GMNA $(65) $(55) $ - $ - $(65) $(55)
GME 43 37 - - 43 37
GMLAAM 3 (5) - - 3 (5)
GMAP 255 493 - - 255 493
--- --- -- -- --- ---
Total GMA $236 $470 $ - $ - $236 $470
=== === == == === ===
14
General Motors Corporation
Operating Statistics
Second Quarter Year to Date
-------------- --------------
2005 2004 2005 2004
---- ---- ---- ----
(units in thousands)
Worldwide Production Volume
GMNA - Cars 458 543 928 1,068
GMNA - Trucks 789 846 1,502 1,666
----- ----- ----- -----
Total GMNA 1,247 1,389 2,430 2,734
GME 501 503 1,003 976
GMLAAM 196 172 381 331
GMAP 400 337 735 633
----- ----- ----- -----
Total Worldwide 2,344 2,401 4,549 4,674
===== ===== ===== =====
Vehicle Unit Deliveries
Chevrolet - Cars 244 223 463 437
Chevrolet - Trucks 549 489 946 876
Pontiac 114 135 214 256
GMC 185 153 308 283
Buick 88 84 149 162
Oldsmobile 1 7 1 24
Saturn 56 61 104 113
Cadillac 72 55 122 106
Other 28 22 45 39
----- ----- ----- -----
Total United States 1,337 1,229 2,352 2,296
Canada, Mexico, and Other 201 185 367 348
----- ----- ----- -----
Total GMNA 1,538 1,414 2,719 2,644
GME 549 539 1,063 1,040
GMLAAM 226 174 409 333
GMAP 281 226 513 450
----- ----- ----- -----
Total Worldwide 2,594 2,353 4,704 4,467
===== ===== ===== =====
Market Share
United States - Cars 23.5% 23.5% 23.4% 24.6%
United States - Trucks 31.3% 29.4% 29.4% 28.4%
Total United States 27.9% 26.7% 26.7% 26.7%
Total North America 27.3% 26.2% 26.4% 26.3%
Total Europe 9.7% 9.7% 9.7% 9.5%
Total LAAM 18.3% 17.1% 17.2% 16.6%
Asia and Pacific 6.3% 5.6% 5.6% 5.2%
Total Worldwide 15.2% 14.7% 14.3% 14.1%
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 34.7% 37.6% 36.9% 37.7%
% Fleet Sales - Trucks 17.2% 17.9% 17.6% 18.1%
Total Vehicles 23.8% 25.7% 25.1% 26.1%
GMNA Capacity Utilization
(2 shift rated, annualized) 92.4% 91.1% 90.0% 90.6%
GMNA Vehicle Revenue
Per Unit $18,811 $18,801
15
General Motors Corporation
Operating Statistics
Second Quarter Year to Date
-------------- --------------
2005 2004 2005 2004
---- ---- ---- ----
GMAC's Worldwide Cost of
Borrowing (4) 4.74% 3.60% 4.51% 3.61%
Period End Debt Spreads Over
U.S. Treasuries
2 Year 325 bp 130 bp
5 Year 485 bp 195 bp
10 Year 480 bp 230 bp
GMAC cash reserve balance
($Bil's) (5) $22.2 $16.6
GMAC Automotive Finance
Operations Consumer
credit (North America)
Net charge-offs as a % of
managed receivables 0.90% 0.99% 0.93% 1.11%
Retail contracts 30 days
delinquent - % of average
number of contracts
outstanding (6) 1.94% 1.97% 2.02% 2.02%
Retail penetration (U.S. only)
Total retail contract volume
and lease as % of retail sales 37% 38% 44% 39%
SmartLease and SmartBuy
as % of retail sales 19% 14% 19% 14%
Off-lease vehicle
remarketing (U.S. only)
Average net gain per vehicle $1,261 $587 $1,223 $523
Off-lease vehicles
terminated (units in 000s) 84 114 156 232
GMAC Mortgage Operations ($Bil's)
Origination volume $50.1 $48.1 $91.9 $83.7
Mortgage servicing rights,
net $3.8 $4.3
GMAC Insurance Operations ($Mil's)
Premium revenue written $1,038 $989 $2,156 $2,046
Investment portfolio
market value $7,526 $6,460
After-tax net unrealized
capital gains $528 $408
Worldwide Employment
at June 30 (in 000's)
United States Hourly 109 114
United States Salary 36 39
--- ---
Total United States 145 153
Canada, Mexico, and Other 32 33
--- ---
GMNA 177 186
GME 58 62
GMLAAM 30 27
GMAP 14 14
GMAC 34 33
Other 4 5
--- ---
Total 317 327
=== ===
Worldwide Payrolls ($Bil's) $5.2 $5.5 $10.5 $11.0
See footnoteson page 17.
16
General Motors Corporation
Footnotes:
---------
(1) This amount is comparable to First Call analysts' consensus.
(2) The increase in readily-available assets results from higher
withdrawal capacity from the hourly VEBA trust due to increased
other postretirement employee benefit payments, and the addition
of withdrawal capacity from the salaried VEBA that was funded in
2004.
(3) Other Operations and Other Financing include intercompany
eliminations.
(4) Calculated by dividing total interest expense (excluding mark
to market adjustments) by total debt.
(5) Balance at June 30, 2005 comprises $19.7 billion of cash and cash
equivalents and $2.5 billion in marketable securities with
maturities greater than 90 days. Balance at June 30, 2004
consisted entirely of cash and cash equivalents.
(6) Excludes accounts in bankruptcy.
17
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
(As (As
restated) restated)
2005 2004 2005 2004
---- ---- ---- ----
(dollars in millions except per share amounts)
Total net sales and
revenue $48,512 $49,254 $94,285 $97,084
------ ------ ------ ------
Cost of sales and other
expenses 40,089 39,778 79,402 78,551
Selling, general, and
administrative expenses 5,475 5,171 10,364 10,180
Interest expense 3,712 2,839 7,391 5,623
------ ------ ------ ------
Total costs and expenses 49,276 47,788 97,157 94,354
------ ------ ------ ------
Income (loss) before income
taxes, equity income
and minority interests (764) 1,466 (2,872) 2,730
Income tax expense (benefit) (305) 302 (1,240) 610
Equity income (loss) and
minority interests 173 213 242 465
--- ------ ------ -----
Net income (loss) $(286) $1,377 $(1,390) $2,585
=== ===== ===== =====
Basic earnings (loss) per
share attributable to
common stock $(0.51) $2.44 $(2.46) $4.58
==== ==== ==== ====
Earnings (loss) per share
attributable to
common stock assuming
dilution $(0.51) $2.42 $(2.46) $4.54
==== ==== ==== ====
18
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
(As (As
restated) restated)
2005 2004 2005 2004
---- ---- ---- ----
(dollars in millions)
AUTOMOTIVE AND OTHER
OPERATIONS
Total net sales and
revenues $40,178 $41,202 $77,481 $81,339
------ ------ ------ ------
Cost of sales and other
expenses 38,048 37,259 74,954 73,690
Selling, general, and
administrative expenses 3,320 3,144 6,157 6,167
------ ------ ------ ------
Total costs and expenses 41,368 40,403 81,111 79,857
------ ------ ------ ------
Interest expense 671 596 1,356 1,158
Net expense from
transactions with
Financing and Insurance
Operations 100 59 187 127
----- --- ----- ---
Income (loss) before income
taxes, equity income, and
minority interests (1,961) 144 (5,173) 197
Income tax (benefit) (694) (188) (2,001) (325)
Equity income (loss) and
minority interests 173 213 245 467
------ --- ------ ---
Net income (loss) -
Automotive and
Other Operations $(1,094) $545 $(2,927) $989
===== === ===== ===
FINANCING AND INSURANCE
OPERATIONS
Total revenues $8,334 $8,052 $16,804 $15,745
----- ----- ------ ------
Interest expense 3,041 2,243 6,035 4,465
Depreciation and
amortization expense 1,404 1,333 2,802 2,663
Operating and other expenses 1,995 2,190 4,138 4,109
Provisions for financing
and insurance losses 797 1,023 1,715 2,102
----- ----- ------ ------
Total costs and expenses 7,237 6,789 14,690 13,339
Net income from
transactions with
Automotive and Other
Operations (100) (59) (187) (127)
------ ------ ------ ------
Income before income taxes,
equity income, and minority
interests 1,197 1,322 2,301 2,533
Income tax expense 389 490 761 935
Equity income (loss) and
minority interests - - (3) (2)
----- ----- ----- -----
Net income - Financing and
Insurance Operations $808 $832 $1,537 $1,596
=== === ===== =====
19
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(As
restated)
June 30, June 30,
2005 Dec. 31, 2004
(Unaudited) 2004 (Unaudited)
---------- ---- ----------
ASSETS (dollars in millions)
Cash and cash equivalents $32,261 $35,993 $29,901
Marketable securities 23,013 21,737 20,816
------ ------ ------
Total cash and marketable securities 55,274 57,730 50,717
Finance receivables - net 178,137 199,600 192,023
Loans held for sale 26,903 19,934 17,393
Accounts and notes receivable (less
allowances) 18,465 21,236 16,989
Inventories (less allowances) 13,350 12,247 12,274
Deferred income taxes 27,640 26,241 27,379
Net equipment on operating leases - (less
accumulated depreciation) 36,076 34,214 32,321
Equity in net assets of nonconsolidated
affiliates 4,969 6,776 6,381
Property - net 40,325 39,020 37,578
Intangible assets - net 4,947 4,925 4,696
Other assets 60,512 57,680 57,709
------- ------- -------
Total assets $466,598 $479,603 $455,460
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable (principally trade) $28,694 $28,830 $26,377
Notes and loans payable 283,621 300,279 277,027
Postretirement benefits other than
pensions 30,525 28,111 31,691
Pensions 9,722 9,455 7,559
Deferred income taxes 6,657 7,078 8,101
Accrued expenses and other liabilities 81,425 77,727 76,641
------- ------- -------
Total liabilities 440,644 451,480 427,396
Minority interests 902 397 328
Stockholders' equity
$1-2/3 par value common stock
(outstanding, 565,503,422;
565,132,021; and 564,721,304 shares) 943 942 941
Capital surplus (principally additional
paid-in capital) 15,255 15,241 15,181
Retained earnings 12,468 14,428 14,772
------ ------ ------
Subtotal 28,666 30,611 30,894
Accumulated foreign currency translation
adjustments (1,645) (1,194) (1,685)
Net unrealized gains (losses) on
derivatives 331 589 369
Net unrealized gains on securities 687 751 557
Minimum pension liability adjustment (2,987) (3,031) (2,399)
------- ------- -------
Accumulated other comprehensive loss (3,614) (2,885) (3,158)
------- ------- -------
Total stockholders' equity 25,052 27,726 27,736
------- ------- -------
Total liabilities and stockholders' equity $466,598 $479,603 $455,460
======= ======= =======
20
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS
(As
restated)
June 30, June 30,
2005 Dec. 31, 2004
(Unaudited) 2004 (Unaudited)
---------- ---- ----------
ASSETS (dollars in millions)
Automotive and Other Operations
Cash and cash equivalents $12,445 $13,148 $13,182
Marketable securities 3,629 6,655 8,319
------ ------ ------
Total cash and marketable securities 16,074 19,803 21,501
Accounts and notes receivable (less
allowances) 8,087 6,713 6,396
Inventories (less allowances) 12,818 11,717 11,576
Net equipment on operating leases - (less
accumulated depreciation) 6,723 6,488 6,914
Deferred income taxes and other current
assets 10,570 10,794 10,876
------ ------ ------
Total current assets 54,272 55,515 57,263
Equity in net assets of nonconsolidated
affiliates 4,969 6,776 6,381
Property - net 38,480 37,170 35,684
Intangible assets - net 1,658 1,599 1,412
Deferred income taxes 18,976 17,399 18,316
Other assets 41,415 40,844 41,657
------- ------- -------
Total Automotive and Other Operations
assets 159,770 159,303 160,713
Financing and Insurance Operations
Cash and cash equivalents 19,816 22,845 16,719
Investments in securities 19,384 15,082 12,497
Finance receivables - net 178,137 199,600 192,023
Loans held for sale 26,903 19,934 17,393
Net equipment on operating leases (less
accumulated depreciation) 29,353 27,726 25,407
Other assets 33,235 35,113 30,708
Net receivable from Automotive and Other
Operations 2,846 2,426 2,004
------- ------- -------
Total Financing and Insurance Operations
assets 309,674 322,726 296,751
------- ------- -------
Total assets $469,444 $482,029 $457,464
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive and Other Operations
Accounts payable (principally trade) $25,361 $24,257 $23,084
Loans payable 1,563 2,062 2,625
Accrued expenses 44,390 46,147 46,726
Net payable to Financing and Insurance
Operations 2,846 2,426 2,004
------- ------- ------
Total current liabilities 74,160 74,892 74,439
Long-term debt 31,043 30,460 29,814
Postretirement benefits other than
pensions 25,815 23,406 27,721
Pensions 9,629 9,371 7,489
Other liabilities and deferred income
taxes 15,946 15,657 15,467
------- ------- -------
Total Automotive and Other Operations
liabilities 156,593 153,786 154,930
Financing and Insurance Operations
Accounts payable 3,333 4,573 3,293
Debt 251,015 267,757 244,588
Other liabilities and deferred income
taxes 32,549 27,790 26,589
------- ------- -------
Total Financing and Insurance Operations
liabilities 286,897 300,120 274,470
------- ------- -------
Total liabilities 443,490 453,906 429,400
Minority interests 902 397 328
Total stockholders' equity 25,052 27,726 27,736
------- ------- -------
Total liabilities and stockholders' equity $469,444 $482,029 $457,464
======= ======= =======
21
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
--------------------------
(As
restated)
2005 2004
---- ----
(dollars in millions)
Net cash provided by operating activities $2,603 $803
Cash flows from investing activities
Expenditures for property (2,944) (3,201)
Investments in marketable securities -
acquisitions (10,830) (6,466)
Investments in marketable securities -
liquidations 10,269 7,064
Net originations and purchases of mortgage
servicing rights (784) (816)
Increase in finance receivables (5,970) (17,800)
Proceeds from sales of finance receivables 17,578 9,012
Operating leases - acquisitions (8,378) (7,118)
Operating leases - liquidations 3,258 3,992
Investments in companies, net of cash
acquired 1,355 (32)
Other (2,411) 982
----- ------
Net cash provided by investing activities 1,143 (14,383)
Cash flows from financing activities
Net increase in loans payable (8,411) 2,137
Long-term debt - borrowings 30,440 37,784
Long-term debt - repayments (32,144) (30,986)
Cash dividends paid to stockholders (570) (564)
Other 3,619 2,804
----- ------
Net cash provided by (used in) financing
activities (7,066) 11,175
Effect of exchange rate changes on cash and
cash equivalents (412) (248)
------ ------
Net decrease in cash and cash equivalents (3,732) (2,653)
Cash and cash equivalents at beginning of
the period 35,993 32,554
------ ------
Cash and cash equivalents at end of the
period $32,261 $29,901
====== ======
22
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION TO THE CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Automotive and Financing and
Other Insurance
Six Months Ended June 30,
------------------------------------
(As
restated)
2005 2004 2005 2004
---- ---- ---- ----
(dollars in millions)
Net cash provided by operating
activities $(2,138) $955 $4,741 $(152)
Cash flows from investing activities
Expenditures for property (2,813) (3,038) (131) (163)
Investments in marketable securities
- acquisitions (271) (855) (10,559) (5,611)
Investments in marketable securities
- liquidations 3,137 1,603 7,132 5,461
Net change in mortgage services rights - - (784) (816)
Increase in finance receivables - - (5,970) (17,800)
Proceeds from sales of finance
receivables - - 17,578 9,012
Operating leases - acquisitions - - (8,378) (7,118)
Operating leases - liquidations - - 3,258 3,992
Net investing activity with Financing
and Insurance Operations 1,000 - - -
Investments in companies, net of cash
acquired 1,355 (53) - 21
Other (591) 110 (1,820) 872
----- ----- ----- ------
Net cash provided by (used in)
investing activities 1,817 (2,233) 326 (12,150)
Cash flows from financing activities
Net increase (decrease) in loans
payable 46 (437) (8,457) 2,574
Long-term debt - borrowings 25 756 30,415 37,028
Long-term debt - repayments (20) (55) (32,124) (30,931)
Net financing activity with
Automotive & Other - - (1,000) -
Cash dividends paid to stockholders (570) (564) - -
Other - - 3,619 2,804
---- ---- ----- ------
Net cash provided by (used in)
financing activities (519) (300) (7,547) 11,475
Effect of exchange rate changes on
cash and cash equivalents (283) (176) (129) (72)
Net transactions with
Automotive/Financing Operations 420 512 (420) (512)
--- ----- ----- -----
Net decrease in cash and cash
equivalents (703) (1,242) (3,029) (1,411)
Cash and cash equivalents at
beginning of the period 13,148 14,424 22,845 18,130
------ ------ ------ ------
Cash and cash equivalents at end of
the period $12,445 $13,182 $19,816 $16,719
====== ====== ====== ======
23
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS CORPORATION
--------------------------
(Registrant)
Date: July 20, 2005 By: /s/PETER R. BIBLE
--- -----------------
(Peter R. Bible,
Chief Accounting Officer)
24