-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BcBLlpDNJygiBRnVQNeFjTmMo5dwcWB42bvQCjIjQOolUL1TrvNXBtK6oGAdqS9h u5IKEBiMb7QZofiKuVoe4A== 0000040730-04-000072.txt : 20040721 0000040730-04-000072.hdr.sgml : 20040721 20040721114444 ACCESSION NUMBER: 0000040730-04-000072 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040721 ITEM INFORMATION: FILED AS OF DATE: 20040721 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL MOTORS CORP CENTRAL INDEX KEY: 0000040730 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLES & PASSENGER CAR BODIES [3711] IRS NUMBER: 380572515 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00043 FILM NUMBER: 04923727 BUSINESS ADDRESS: STREET 1: 300 RENAISSANCE CTR STREET 2: MAIL CODE: 482-C34-D71 CITY: DETROIT STATE: MI ZIP: 48265-3000 BUSINESS PHONE: 3135565000 MAIL ADDRESS: STREET 1: 300 RENAISSANCE CTR STREET 2: MAIL CODE: 482-C34-D71 CITY: DETROIT STATE: MI ZIP: 48265-3000 8-K 1 gmq204er072104.txt GMC SECOND QUARTER 2004 EARNINGS RELEASE 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 21, 2004 GENERAL MOTORS CORPORATION -------------------------- (Exact Name of Registrant as Specified in its Charter) STATE OF DELAWARE 38-0572515 ----------------- ---------- (State or other jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 300 Renaissance Center, Detroit, Michigan 48265-3000 ----------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (313) 556-5000 -------------- ITEM 12. Disclosure of information on financial conditions On July 21, 2004, 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 Earns $1.3 Billion or $2.36 Per Share in Second Quarter 2004 GMAC posts record quarterly earnings, driven by financing and insurance Automotive earnings increase to $529 million Calendar year earnings forecast of $7.00 per share remains unchanged DETROIT - General Motors Corp. (NYSE: GM) today reported earnings from continuing operations of $1.3 billion, or $2.36 per diluted share, in the second quarter of 2004. These results compare with earnings of $879 million, or $1.57 per share, in the second quarter of 2003. Revenue rose 7.1 percent to $49.1 billion. "Overall, our financial results for the quarter were reasonably good," said GM Chairman and Chief Executive Officer Rick Wagoner. "General Motors Acceptance Corp. once again had an outstanding quarter, setting another record, and our automotive operations reported improved earnings as well. But competition in the global automotive market remains very intense, and we still have much work to do to improve our automotive profitability to targeted levels." GM financial results described throughout the remainder of this release exclude special items and discontinued operations unless otherwise noted. See Highlights for reconciliation of adjusted results to results based on Generally Accepted Accounting Principles (GAAP). GMAC GMAC earned a record $860 million in the second quarter of 2004, up from $834 million in the year-ago period. "We're very pleased with GMAC's record-breaking performance," Wagoner said. "GMAC continues to do an outstanding job managing its global portfolio of businesses. Its auto-financing business, in addition to supporting GM sales, is turning in strong profitability around the globe. Insurance earnings are strengthening, and mortgage earnings, while understandably lower, still remain solid." Earnings from GMAC's financing operations rose 14 percent to $452 million in the second quarter, up from $396 million a year ago, as lower credit losses and improved lease-residual values more than offset narrower net-interest margins. Second-quarter earnings at the insurance group were $75 million, a significant improvement from earnings of $23 million a year ago, reflecting continued growth in underwriting income and improved performance in the investment portfolio in 2004. Earnings from the mortgage unit totaled $333 million, compared with record year-ago earnings of $415 million. As expected, lower mortgage volume and decreased pricing margins were somewhat offset by higher asset levels. Despite the decline in second-quarter earnings, GMAC's mortgage unit continues to be a significant contributor to GMAC's overall performance. 2 GM Automotive Operations GM's global-automotive earnings totaled $529 million in the second quarter of 2004, up from $140 million in the prior-year period, reflecting improved earnings in North America, Asia Pacific, and the Latin America/Africa/Mid-East region, partially offset by increased losses in Europe. In the second quarter, GM's market share was up in three out of four regions of the world; global share totaled 14.7 percent, down from 14.9 percent in the year-ago period. For the six months ended June 30, 2004, GM's market share was also up in three out of four regions, and totaled 14.1 percent, compared with 14.2 percent in the year-ago period. GM North America (GMNA) earned $328 million in the second quarter of 2004, compared with earnings of $83 million in the second quarter of 2003. Improvements in material costs and pricing more than offset less-favorable mix and higher recall costs. GM's market share in North America was 26.2 percent in the second quarter of 2004, compared with 27.2 percent in the year-earlier period. For the six months ended June 30, 2004, GM's market share in North America was 26.3 percent, versus 26.7 percent in the year-ago period. "While earnings at GM North America improved, overall sales, market share and financial results were well below our expectations. For sure, the competition is tough, but we also must move faster to implement our strategy -- introducing great cars and trucks, reducing costs, improving quality, and generating cash," Wagoner said. "There were some bright spots in the quarter, such as our strong performance in recent quality and productivity surveys, and the market reception of new vehicles, like the Chevrolet Equinox and the Cadillac SRX." GM's quality and productivity gains were recognized during the second quarter by two major independent surveys. According to the 2004 J.D. Power and Associates Initial Quality Study, GM recorded a 10-percent improvement in initial quality overall, with Cadillac emerging as the top luxury-car brand. GM also continued its steady improvement in manufacturing productivity. In the recently released Harbour Report North America 2004, GM posted a 5.2-percent improvement in North American manufacturing productivity in 2003, bringing GM's overall improvement over the last six years to more than 24 percent. "We've had a decade-long focus on improving our quality and manufacturing productivity, and with the great work of our employees and labor unions, we're now reaching industry-leading performance in many categories and plants," Wagoner said. "That's something we're proud of, but the fact is that we've still got more to do in this area in order to offset our high-cost manufacturing footprint and the huge burden of legacy costs that we carry." GM Europe (GME) reported a loss of $45 million in the second quarter of 2004 compared with a loss of $3 million in the year-ago quarter. The most recent quarter's results reflect intense price competition, foreign-exchange losses and continuing restructuring costs for GM's share of the GM-Fiat powertrain joint venture, partially offset by continuing cost improvements. GM's market share in Europe rose to 9.8 percent in the second quarter of 2004 from 9.4 percent in the year-ago period. For the six months ended June 30, 2004, GM's market share in Europe was 9.6 percent, up from 9.5 percent in the year ago period. "Our European operations are making significant progress in reducing costs and improving quality," Wagoner said. "However, despite growing market share, we're not getting the revenue growth that we had hoped for, particularly in the traditionally large western European markets. So, that means we have to pick up the pace in new-model introductions, while we simultaneously reduce costs. That's a tough assignment, and it's going to require GME to do a better job of leveraging our global resources to bring new products to market faster and at lower cost." 3 GM Asia Pacific (GMAP) earned $236 million in the second quarter of 2004, up from $163 million in the year-ago quarter. Continued strong performance by Shanghai GM in China, improved earnings in India and Thailand, and smaller losses at GM-Daewoo Auto & Technology Co. (GMDAT) contributed to GMAP's overall performance. GM's market share in the Asia Pacific region rose to 5.4 percent in the second quarter from 4.8 percent a year ago, led by gains in China and India. Through the first six months of 2004, GM's market share in the Asia Pacific region was 5.0 percent, up from 4.6 percent in the comparable period a year ago. "GMAP registered another great quarter, growing sales, market share and profitability," Wagoner said. "For example, in the first six months of 2004, GM sales in China rose 58 percent and GM continued to gain share in Thailand and India. We expect continued strong growth in Asia, and we plan to stay aggressive and capitalize on our momentum." Wagoner also pointed out recently announced plans to invest $3 billion in China over the next three years with GM's joint-venture partners. "This investment will further strengthen GM's already solid position in China by expanding our capacity and broadening GM's product portfolio with the introduction of the Cadillac brand." GM Latin America/Africa/Mid-East (GMLAAM) earned $10 million in the second quarter of 2004, a significant improvement from the year-ago loss of $103 million. This year's results reflect higher production volumes and improved earnings in Venezuela and South Africa. GM's market share in the GMLAAM region rose to 17.4 percent in the second quarter of 2004 from 15.6 percent a year ago. For the six months ended June 30, 2004, GM's market share in the LAAM region was 17 percent, up from 15.6 percent in the year-ago period. "We're pleased with the improving performance of GMLAAM," Wagoner said. "Our market share continues to be impressive and we reported a profit for the second consecutive quarter." Cash and Liquidity GM generated approximately $1.2 billion in automotive cash in the second quarter of 2004. For the six months ended June 30, 2004, total automotive cash generated by GM stood at $2.6 billion. Cash, marketable securities, and short-term assets of the Voluntary Employees' Beneficiary Association (VEBA) trust totaled $25 billion at June 30, 2004, excluding financing and insurance operations, compared with $23.5 billion on March 31, 2004. Looking Ahead GM expects total U.S. industry sales of approximately 17.2 million vehicles in calendar year 2004, reflecting strengthening labor markets and increases in household income. Through the first six months of 2004, industry sales came in at an annualized rate of around 16.9 million units. For the third quarter of 2004, GM expects to earn approximately $0.75 to $1.00 per share, excluding special items and at current dilution levels. GM's 2004-calendar-year earnings estimate remains unchanged at approximately $7.00 per share, excluding special items and at current dilution levels. 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, 2004 June 30, 2004 ----------------- ------------- Net Net Income EPS Income EPS ------ ----- ------ ----- REPORTED -------- Net income $1,341 $2.36 $2,621 $4.61 ===== ==== ===== ==== There were no special items in the Second Quarter of 2004. 5 General Motors Corporation List of Special Items - After Tax (dollars in millions except per share amounts) (unaudited) Three Months Ended Year to Date June 30, 2003 June 30, 2003 ----------------- ------------- Net Net Income EPS Income EPS ------ ----- ------ ----- REPORTED -------- Income from continuing operations $879 $1.57 $2,416 $4.30 Income(loss)from discontinued operations 22 0.01 (32) (0.01) --- ---- ----- ---- Net income 901 1.58 2,384 4.29 ADJUSTMENTS ----------- Gain on Sale of GM Defense (A) - - (505) (0.90) --- ---- --- ---- Subtotal - - (505) (0.90) ADJUSTED -------- Income from continuing operations $879 $1.57 $1,911 $3.40 Income(loss)from discontinued operations 22 0.01 (32) (0.01) --- ---- ----- ---- Adjusted Income $901 $1.58 $1,879 $3.39 === ==== ===== ==== (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. 6 General Motors Corporation Summary Corporate Financial Results (unaudited) Second Quarter Year to Date -------------- -------------- 2004 2003 2004 2003 ---- ---- ---- ---- (dollars in millions except per share amounts) Total net sales and revenues $49,148 $45,881 $96,833 $92,932 Adjusted $49,148 $45,881 $96,833 $92,118 Income from continuing operations $1,341 $879 $2,621 $2,416 Adjusted $1,341 $879 $2,621 $1,911 Income (loss) from discontinued operations - 22 - (32) Adjusted - 22 - (32) Net income $1,341 $901 $2,621 $2,384 Adjusted $1,341 $901 $2,621 $1,879 Net margin from continuing operations (Income from continuing operations / Total net sales and revenues) 2.7% 1.9% 2.7% 2.6% Adjusted 2.7% 1.9% 2.7% 2.1% Earnings per share - basic $1-2/3 par value Continuing operations $2.37 $1.57 $4.64 $4.31 Discontinued operations - $0.01 - $(0.01) ---- ---- ---- ---- Earnings per share $2.37 $1.58 $4.64 $4.30 Earnings per share - diluted $1-2/3 par value Continuing operations $2.36 $1.57 $4.61 $4.30 Discontinued operations - $0.01 - $(0.01) ---- ---- ---- ---- Earnings per share $2.36 $1.58 $4.61 $4.29 Earnings per share - adjusted $1-2/3 par value Continuing operations $2.36 $1.57 $4.61 $3.40 Discontinued operations - $0.01 - $(0.01) ---- ---- ---- ---- Earnings per share $2.36 (1) $1.58 $4.61 $3.39 GM $1-2/3 par value average shares outstanding (Mil's) Basic shares 565 561 564 561 Diluted shares 568 561 569 561 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 16. 7 General Motors Corporation Summary Corporate Financial Results (unaudited) Second Quarter Year to Date -------------- -------------- 2004 2003 2004 2003 ---- ---- ---- ---- Book value per share of common stocks at June 30 GM $1-2/3 par value $49.18 $13.27 Auto & Other Operations total cash & marketable securities at June 30 ($Bil's) $21.5 $20.3 Cash in short-term VEBA $3.5 $3.4 ---- ---- Total Auto & Other cash & marketable securities plus short-term VEBA $25.0 $23.7 ==== ==== Auto & Other Operations ($Mil's) Depreciation $1,441 $1,097 $2,589 $2,083 Amortization of special tools 774 651 1,500 1,353 Amortization of intangible assets 9 5 16 10 ----- ----- ----- ----- Total $2,224 $1,753 $4,105 $3,446 ===== ===== ===== ===== 8 General Motors Corporation Summary Corporate Financial Results (unaudited) Second Quarter 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Total net sales and revenues GMNA $29,429 $28,558 $ - $ - $29,429 $28,558 GME 8,094 7,303 - - 8,094 7,303 GMLAAM 1,909 1,119 - - 1,909 1,119 GMAP 1,693 1,267 - - 1,693 1,267 ------ ------ -- --- ------ ------ Total GMA 41,125 38,247 - - 41,125 38,247 Other 77 96 - - 77 96 ------ ------ -- --- ------ ------ Total Auto & Other 41,202 38,343 - - 41,202 38,343 ------ ------ -- --- ------ ------ GMAC 7,709 7,542 - - 7,709 7,542 Other Financing 237 (4) - - 237 (4) ------ ------ -- --- ------ ------ Total FIO 7,946 7,538 - - 7,946 7,538 ------ ------ -- --- ------ ------ Total net sales and revenues $49,148 $45,881 $ - $ - $49,148 $45,881 ====== ====== == === ====== ====== Income (loss) from continuing operations before income taxes, equity income, and minority interests GMNA $423 $90 $ - $ - $423 $90 GME (96) (34) - - (96) (34) GMLAAM 11 (123) - - 11 (123) GMAP 33 11 - - 33 11 --- ----- -- --- --- --- Total GMA 371 (56) - - 371 (56) Other (248) (357) - - (248) (357) --- ----- -- --- --- --- Total Auto & Other 123 (413) - - 123 (413) ----- ----- -- --- ----- ----- GMAC 1,358 1,331 - - 1,358 1,331 Other Financing (24) 13 - - (24) 13 ----- ----- -- --- ----- ----- Total FIO 1,334 1,344 - - 1,334 1,344 ----- ----- -- --- ----- ----- Total income (loss) from continuing operations before income taxes, equity income, and minority interests $1,457 $931 $ - $ - $1,457 $931 ===== ===== == === ===== ===== 9 General Motors Corporation Summary Corporate Financial Results (unaudited) Second Quarter 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Income (loss) from continuing operations GMNA $328 $83 $ - $ - $328 $83 GME (45) (3) - - (45) (3) GMLAAM 10 (103) - - 10 (103) GMAP 236 163 - - 236 163 --- --- -- --- --- --- Total GMA 529 140 - - 529 140 Other (34) (104) - - (34) (104) --- --- -- --- --- --- Total Auto & Other 495 36 - - 495 36 --- --- -- --- --- --- GMAC 860 834 - - 860 834 Other Financing (14) 9 - - (14) 9 --- --- -- --- --- --- Total FIO 846 843 - - 846 843 --- --- -- --- --- --- Income (loss) from continuing operations $1,341 $879 $ - $ - $1,341 $879 Income from discontinued operations - 22 - - - 22 ----- --- -- --- ----- --- Net income (loss) $1,341 $901 $ - $ - $1,341 $901 ===== ===== == == ===== === Income tax expense (benefit) GMNA $73 $25 $ - $ - $73 $25 GME (36) (13) - - (36) (13) GMLAAM (2) (25) - - (2) (25) GMAP (1) 8 - - (1) 8 --- --- -- --- --- --- Total GMA 34 (5) - - 34 (5) Other (216) (251) - - (216) (251) --- --- -- --- --- --- Total Auto & Other (182) (256) - - (182) (256) --- --- -- --- --- --- GMAC 498 496 - - 498 496 Other Financing (10) 4 - - (10) 4 --- --- -- --- --- --- Total FIO 488 500 - - 488 500 --- --- -- --- --- --- Income tax expense (benefit) $306 $244 $ - $ - $306 $244 === === == == === === 10 General Motors Corporation Summary Corporate Financial Results (unaudited) Second Quarter 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Effective tax rate Total GM Corp. 21% 26% - - 21% 26% GMNA 17% 28% - - 17% 28% GME 38% 38% - - 38% 38% GMAC 37% 37% - - 37% 37% Tax settlements that were previously expected in the second quarter of 2004 are now expected to be completed in the second half of 2004. Excluding these settlements, GM's effective tax rate is expected to be approximately 21% on an ongoing quarterly basis. Equity income (loss) and minority interests GMNA $(22) $18 $ - $ - $(22) $18 GME 15 18 - - 15 18 GMLAAM (3) (5) - - (3) (5) GMAP 202 160 - - 202 160 --- --- -- -- --- --- Total GMA $192 $191 $ - $ - $192 $191 === === == == === === 11 General Motors Corporation Summary Corporate Financial Results (unaudited) Year to Date 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Total net sales and revenues GMNA $58,532 $58,521 $ - $ - $58,532 $58,521 GME 15,637 13,925 - - 15,637 13,925 GMLAAM 3,742 2,164 - - 3,742 2,164 GMAP 3,292 2,414 - - 3,292 2,414 ------ ------ -- --- ------ ------ Total GMA 81,203 77,024 - - 81,203 77,024 Other 136 1,134 - (814) 136 320 ------ ------ -- --- ------ ------ Total Auto & Other 81,339 78,158 - (814) 81,339 77,344 ------ ------ -- --- ------ ------ GMAC 15,249 14,785 - - 15,249 14,785 Other Financing 245 (11) - - 245 (11) ------ ------ -- --- ------ ------ Total FIO 15,494 14,774 - - 15,494 14,774 ------ ------ -- --- ------ ------ Total net sales and revenues $96,833 $92,932 $ - $ (814) $96,833 $92,118 ====== ====== == === ====== ====== Income (loss) from continuing operations before income taxes, equity income, and minority interests GMNA $1,009 $829 $ - $ - $1,009 $829 GME (319) (148) - - (319) (148) GMLAAM 19 (140) - - 19 (140) GMAP 46 30 - - 46 30 --- --- -- --- --- --- Total GMA 755 571 - - 755 571 Other (568) 92 - (814) (568) (722) --- --- -- --- --- --- Total Auto & Other 187 663 - (814) 187 (151) ----- ----- -- --- ----- ----- GMAC 2,596 2,478 - - 2,596 2,478 Other Financing (25) (12) - - (25) (12) ----- ----- -- --- ----- ----- Total FIO 2,571 2,466 - - 2,571 2,466 ----- ----- -- --- ----- ----- Total income (loss) from continuing operations before income taxes, equity income, and minority interests $2,758 $3,129 $ - $ (814) $2,758 $2,315 ===== ===== == === ===== ===== 12 General Motors Corporation Summary Corporate Financial Results (unaudited) Year to Date 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Income (loss) from continuing operations GMNA $779 $631 $ - $ - $779 $631 GME (161) (68) - - (161) (68) GMLAAM 11 (115) - - 11 (115) GMAP 511 238 - - 511 238 ----- --- -- --- ----- --- Total GMA 1,140 686 - - 1,140 686 Other (151) 205 - (505) (151) (300) ----- --- -- --- ----- --- Total Auto & Other 989 891 - (505) 989 386 ----- ----- -- --- ----- ----- GMAC 1,646 1,533 - - 1,646 1,533 Other Financing (14) (8) - - (14) (8) ----- ----- -- --- ----- ----- Total FIO 1,632 1,525 - - 1,632 1,525 ----- ----- -- --- ----- ----- Income (loss) from continuing operations $2,621 $2,416 $ - $(505) $2,621 $1,911 Income from discontinued operations - (32) - - - (32) ----- ----- -- --- ----- ----- Net income (loss) $2,621 $2,384 $ - $ (505) $2,621 $1,879 ===== ===== == == ===== ===== Income tax expense (benefit) GMNA $175 $216 $ - $ - $175 $216 GME (121) (56) - - (121) (56) GMLAAM 3 (32) - - 3 (32) GMAP 5 19 - - 5 19 --- --- -- --- --- --- Total GMA 62 147 - - 62 147 Other (420) (151) - (309) (420) (460) --- --- -- --- --- --- Total Auto & Other (358) (4) - (309) (358) (313) --- --- -- --- --- --- GMAC 948 934 - - 948 934 Other Financing (11) (4) - - (11) (4) --- --- -- --- --- --- Total FIO 937 930 - - 937 930 --- --- -- --- --- --- Income tax expense (benefit) $579 $926 $ - $ (309) $579 $617 === === == == === === 13 General Motors Corporation Summary Corporate Financial Results (unaudited) Year to Date 2004 and 2003 -------------- (dollars in millions) Reported Special Items Adjusted -------- ------------- -------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Effective tax rate Total GM Corp. 21% 30% - 38% 21% 27% GMNA 17% 26% - - 17% 26% GME 38% 38% - - 38% 38% GMAC 37% 38% - - 37% 38% Tax settlements that were previously expected in the second quarter of 2004 are now expected to be completed in the second half of 2004. Excluding these settlements, GM's effective tax rate is expected to be approximately 21% on an ongoing quarterly basis. Equity income (loss) and minority interests GMNA $(55) $18 $ - $ - $(55) $18 GME 37 24 - - 37 24 GMLAAM (5) (7) - - (5) (7) GMAP 470 227 - - 470 227 --- --- -- -- --- --- Total GMA $447 $262 $ - $ - $447 $262 === === == == === === 14 General Motors Corporation Operating Statistics Second Quarter Year to Date -------------- -------------- 2004 2003 2004 2003 ---- ---- ---- ---- (units in thousands) Worldwide Wholesale Sales United States - Cars 503 487 985 986 United States - Trucks 755 761 1,481 1,518 ----- ----- ----- ----- Total United States 1,258 1,248 2,466 2,504 Canada, Mexico, and Other 190 185 365 367 ----- ----- ----- ----- Total GMNA 1,448 1,433 2,831 2,871 GME 477 447 910 874 GMLAAM 176 122 344 243 GMAP 71 69 133 131 ----- ----- ----- ----- Total Worldwide 2,172 2,071 4,218 4,119 ===== ===== ===== ===== Vehicle Unit Deliveries Chevrolet - Cars 223 220 437 391 Chevrolet - Trucks 489 505 876 878 Pontiac 135 120 256 227 GMC 153 155 283 263 Buick 84 85 162 168 Oldsmobile 7 34 24 68 Saturn 61 72 113 147 Cadillac 55 49 106 96 Other 22 26 39 46 ----- ----- ----- ----- Total United States 1,229 1,266 2,296 2,284 Canada, Mexico, and Other 185 179 348 330 ----- ----- ----- ----- Total GMNA 1,414 1,445 2,644 2,614 GME 539 481 1,039 956 GMLAAM 174 130 335 262 GMAP 220 181 435 360 ----- ----- ----- ----- Total Worldwide 2,347 2,237 4,453 4,192 ===== ===== ===== ===== Market Share United States - Cars 23.5% 24.8% 24.6% 24.9% United States - Trucks 29.4% 30.4% 28.4% 29.4% Total United States 26.7% 27.9% 26.7% 27.3% Total North America 26.2% 27.2% 26.3% 26.7% Total Europe 9.8% 9.4% 9.6% 9.5% Total LAAM 17.4% 15.6% 17.0% 15.6% Asia and Pacific 5.4% 4.8% 5.0% 4.6% Total Worldwide 14.7% 14.9% 14.1% 14.2% U.S. Retail/Fleet Mix % Fleet Sales - Cars 37.6% 29.5% 37.7% 29.8% % Fleet Sales - Trucks 17.9% 15.1% 18.1% 14.9% Total Vehicles 25.7% 21.0% 26.1% 21.3% Retail Lease as % of Retail Sales Total Smartlease and Smartbuy 14.2% 7.3% Days Supply of Inventory at June 30 United States - Cars 87 73 United States - Trucks 123 98 GMNA Capacity Utilization (2 shift rated) 87.3% 87.6% 86.2% 89.3% GMNA Vehicle Revenue Per Unit $18,801 $18,565 15 General Motors Corporation Operating Statistics Second Quarter Year to Date -------------- -------------- 2004 2003 2004 2003 ---- ---- ---- ---- GMAC's U.S. Cost of Borrowing 3.33% 3.50% Current Debt Spreads Over U.S. Treasuries 2 Year 130 bp 255 bp 5 Year 195 bp 330 bp 10 Year 230 bp 370 bp Worldwide Employment at June 30 (in 000's) United States Hourly 114 120 United States Salary 39 41 --- --- Total United States 153 161 Canada, Mexico, and Other 33 31 --- --- GMNA 186 192 GME 62 64 GMLAAM (2) 26 23 GMAP 14 13 GMAC 33 31 Other 5 7 --- --- Total 326 330 === === Worldwide Payrolls ($Bil's) $5.5 $5.1 $11.0 $10.4 Footnotes: --------- (1) This amount is comparable to First Call analysts' consensus. (2) 2004 includes 3,000 employees as a result of the consolidation of GM South Africa. 16 GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Six Months Ended Ended June 30, June 30, ------- -------- 2004 2003 2004 2003 ---- ---- ---- ---- (dollars in millions except per share amounts) Total net sales and revenues $49,148 $45,881 $96,833 $92,932 ------- ------- ------- ------- Cost of sales and other expenses 39,464 37,253 78,127 75,015 Selling, general, and administrative expenses 5,413 5,480 10,367 10,491 Interest expense 2,814 2,217 5,581 4,297 ----- ----- ----- ----- Total costs and expenses 47,691 44,950 94,075 89,803 ------ ------ ------ ------ Income from continuing operations before income taxes, equity income, and minority interests 1,457 931 2,758 3,129 Income tax expense 306 244 579 926 Equity income (loss) and minority interests 190 192 442 213 --- --- --- --- Income from continuing operations 1,341 879 2,621 2,416 Earnings (loss) from discontinued operations - 22 - (32) ----- --- ----- ----- Net Income $1,341 $901 $2,621 $2,384 ===== === ===== ===== Basic earnings (loss) per share attributable to common stocks $1-2/3 par value Continuing Operations $2.37 $1.57 $4.64 $4.31 Discontinued Operations - $0.01 - $(0.01) ---- ---- ---- ---- Earnings per share attributable to $1-2/3 par value $2.37 $1.58 $4.64 $4.30 ==== ==== ==== ==== Earnings (loss) per share from discontinued operations attributable to Class H $ - $0.02 $ - $(0.02) === ==== === ==== Earnings (loss) per share attributable to common stocks assuming dilution $1-2/3 par value Continuing Operations $2.36 $1.57 $4.61 $4.30 Discontinued Operations - $0.01 - $(0.01) ---- ---- ---- ---- Earnings per share attributable to $1-2/3 par value $2.36 $1.58 $4.61 $4.29 ==== ==== ==== ==== Earnings (loss) per share from discontinued operations attributable to Class H $ - $0.02 $ - $(0.02) === ==== === ==== 17 GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Six Months Ended Ended June 30, June 30, -------- -------- 2004 2003 2004 2003 ---- ---- ---- ---- (dollars in millions) AUTOMOTIVE AND OTHER OPERATIONS Total net sales and revenues $41,202 $38,343 $81,339 $78,158 ------ ------ ------ ------ Cost of sales and other expenses 37,307 35,331 73,747 71,155 Selling, general, and administrative expenses 3,144 3,065 6,180 5,690 ----- ----- ----- ----- Total costs and expenses 40,451 38,396 79,927 76,845 Interest expense 596 326 1,158 575 Net expense from transactions with Financing and Insurance Operations 32 34 67 75 ------ ------ ------ ------ Income (loss) from continuing operations before income taxes, equity income, and minority interests 123 (413) 187 663 Income tax (benefit) (182) (256) (358) (4) Equity income (loss) and minority interests 190 193 444 224 --- --- --- --- Income from continuing operations 495 36 989 891 Income (loss) from discontinued operations - 22 - (32) --- -- --- --- Net Income - Automotive and Other Operations $495 $58 $989 $859 === == === === FINANCING AND INSURANCE OPERATIONS Total revenues $7,946 $7,538 $15,494 $14,774 ----- ----- ------ ------ Interest expense 2,218 1,891 4,423 3,722 Depreciation and amortization expense 1,145 1,578 2,600 3,084 Operating and other expenses 2,434 2,015 4,283 4,081 Provisions for financing and insurance losses 847 744 1,684 1,496 ----- ----- ----- ----- Total costs and expenses 6,644 6,228 12,990 12,383 ----- ----- ------ ------ Net income from transactions with Automotive and Other Operations (32) (34) (67) (75) --- --- --- --- Income before income taxes, equity income, and minority interests 1,334 1,344 2,571 2,466 Income tax expense 488 500 937 930 Equity income (loss) and minority interests - (1) (2) (11) ----- ----- ----- ----- Net income - Financing and Insurance Operations $846 $843 $1,632 $1,525 === === ===== ===== 18 GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, June 30, 2004 Dec. 31, 2003 (Unaudited) 2003 (Unaudited) ----------- ---- ----------- ASSETS (dollars in millions) Cash and cash equivalents $29,901 $32,554 $27,824 Marketable securities 20,816 22,215 18,777 ------ ------ ------ Total cash and marketable securities 50,717 54,769 46,601 Finance receivables - net 191,563 174,731 154,449 Loans held for sale 17,393 19,609 17,385 Accounts and notes receivable (less allowances) 16,989 20,532 20,019 Inventories (less allowances) 11,576 10,960 10,796 Assets of discontinued operations - - 20,417 Deferred income taxes 27,379 27,190 39,027 Net equipment on operating leases - (less accumulated depreciation) 32,800 32,790 33,207 Equity in net assets of nonconsolidated affiliates 6,381 6,032 5,325 Property - net 37,578 38,211 36,859 Intangible assets - net 4,696 4,760 10,944 Other assets 58,408 58,923 15,894 ------ ------ ------ Total assets $455,480 $448,507 $410,923 ======= ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable (principally trade) $26,377 $25,422 $22,974 Notes and loans payable 277,027 271,756 228,281 Liabilities of discontinued operations - - 9,724 Postretirement benefits other than pensions 31,691 36,292 38,583 Pensions 7,559 8,024 23,873 Deferred income taxes 8,101 7,508 6,773 Accrued expenses and other liabilities 76,624 73,930 69,920 ------ ------ ------ Total liabilities 427,379 422,932 400,128 Minority interests 328 307 414 Stockholders' equity $1-2/3 par value common stock (outstanding, 564,721,304; 561,997,725; and 560,712,564 shares) 941 937 935 Class H common stock (outstanding, 1,108,139,876 shares - - 111 at June 30, 2003) Capital surplus (principally additional paid-in capital) 15,181 15,185 22,815 Retained earnings 14,809 12,752 11,855 ------ ------ ------ Subtotal 30,931 28,874 35,716 Accumulated foreign currency translation adjustments (1,685) (1,815) (2,292) Net unrealized gain (loss) on derivatives 369 51 (205) Net unrealized gains on securities 557 618 612 Minimum pension liability adjustment (2,399) (2,460) (23,450) ----- ----- ------ Accumulated other comprehensive loss (3,158) (3,606) (25,335) ----- ----- ------ Total stockholders' equity 27,773 25,268 10,381 ------ ------ ------ Total liabilities and stockholders' equity $455,480 $448,507 $410,923 ======= ======= ======= 19 GENERAL MOTORS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION TO THE CONSOLIDATED BALANCE SHEETS June 30, June 30, 2004 Dec. 31, 2003 (Unaudited) 2003 (Unaudited) ----------- ---- ----------- ASSETS (dollars in millions) Automotive and Other Operations Cash and cash equivalents $13,182 $14,424 $15,397 Marketable securities 8,319 9,067 4,913 ------ ------ ------ Total cash and marketable securities 21,501 23,491 20,310 Accounts and notes receivable (less allowances) 6,396 5,380 5,528 Inventories (less allowances) 11,576 10,960 10,796 Assets of discontinued operations - - 20,417 Net equipment on operating leases (less accumulated depreciation) 6,914 7,173 5,946 Deferred income taxes and other current assets 10,876 10,851 9,884 ------ ------ ------ Total current assets 57,263 57,855 72,881 Equity in net assets of nonconsolidated affiliates 6,381 6,032 5,325 Property - net 35,684 36,071 34,882 Intangible assets - net 1,412 1,479 7,591 Deferred income taxes 18,316 18,086 30,496 Other assets 41,657 42,262 1,743 ------- ------- ------- Total Automotive and Other Operations assets 160,713 161,785 152,918 Financing and Insurance Operations Cash and cash equivalents 16,719 18,130 12,427 Investments in securities 12,497 13,148 13,864 Finance receivables - net 191,563 174,731 154,449 Loans held for sale 17,393 19,609 17,385 Net equipment on operating leases (less accumulated depreciation) 25,886 25,617 27,261 Other assets 30,709 35,487 32,619 Net receivable from Automotive and Other Operations 2,004 1,492 1,128 ----- ----- ----- Total Financing and Insurance Operations assets 296,771 288,214 259,133 ------- ------- ------- Total assets $457,484 $449,999 $412,051 ======= ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Automotive and Other Operations Accounts payable (principally trade) $23,084 $21,542 $19,371 Loans payable 2,625 2,813 1,599 Liabilities of discontinued operations - - 9,724 Accrued expenses 46,726 45,417 42,286 Net payable to Financing and Insurance Operations 2,004 1,492 1,128 ------ ------ ------ Total current liabilities 74,439 71,264 74,108 Long-term debt 29,814 29,593 15,567 Postretirement benefits other than pensions 27,721 32,285 34,642 Pensions 7,489 7,952 23,812 Other liabilities and deferred income taxes 15,467 15,567 14,074 ------ ------ ------ Total Automotive and Other Operations liabilities 154,930 156,661 162,203 Financing and Insurance Operations Accounts payable 3,293 3,880 3,603 Debt 244,588 239,350 211,115 Other liabilities and deferred income taxes 26,572 24,533 24,335 ------ ------ ------ Total Financing and Insurance Operations liabilities 274,453 267,763 239,053 ------- ------- ------- Total liabilities 429,383 424,424 401,256 Minority interests 328 307 414 Total stockholders' equity 27,773 25,268 10,381 ------ ------ ------ Total liabilities and stockholders' equity $457,484 $449,999 $412,051 ======= ======= ======= 20 GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, ------------------------- 2004 2003 ---- ---- (dollars in millions) Net cash provided by operating activities $7,599 $10,648 Cash flows from investing activities Expenditures for property (3,201) (3,146) Investments in marketable securities - acquisitions (6,466) (7,198) Investments in marketable securities - liquidations 7,064 5,804 Net originations and purchases of mortgage servicing rights (816) (1,152) Increase in finance receivables (66,456) (71,799) Proceeds from sales of finance receivables 51,172 49,635 Proceeds from sale of business units - 1,076 Operating leases - acquisitions (7,015) (6,131) Operating leases - liquidations 4,019 5,362 Investments in companies, net of cash acquired (32) (59) Other 552 (606) ------ ------ Net cash used in investing activities (21,179) (28,214) Cash flows from financing activities Net increase in loans payable 2,137 1,100 Long-term debt - borrowings 37,784 40,063 Long-term debt - repayments (30,986) (17,302) Cash dividends paid to stockholders (564) (560) Other 2,804 1,333 ----- ----- Net cash provided by financing activities 11,175 24,634 Effect of exchange rate changes on cash and cash equivalents (248) 436 ---- --- Net increase (decrease) in cash and cash equivalents (2,653) 7,504 Cash and cash equivalents at beginning of the period 32,554 20,320 ------ ------ Cash and cash equivalents at end of the period $29,901 $27,824 ====== ====== 21 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, ----------------------------------- 2004 2003 2004 2003 ---- ---- ---- ---- (dollars in millions) Net cash provided by operating activities $955 $6,844 $6,644 $3,804 Cash flows from investing activities Expenditures for property (3,038) (2,762) (163) (384) Investments in marketable securities - acquisitions (855) (2,837) (5,611) (4,361) Investments in marketable securities - liquidations 1,603 100 5,461 5,704 Net change in mortgage servicing rights - - (816) (1,152) Increase in finance receivables - - (66,456)(71,799) Proceeds from sales of finance receivables - - 51,172 49,635 Proceeds from sale of business units - 1,076 - - Operating leases - acquisitions - - (7,015) (6,131) Operating leases - liquidations - - 4,019 5,362 Investments in companies, net of cash acquired (53) (59) 21 - Other 110 35 442 (571) --- -- --- --- Net cash used in investing activities (2,233) (4,517) (18,946)(23,697) Cash flows from financing activities Net increase (decrease) in loans payable (437) (427) 2,574 1,527 Long-term debt - borrowings 756 1,501 37,028 38,562 Long-term debt - repayments (55) (18) (30,931)(17,284) Cash dividends paid to stockholders (564) (560) - - Other - - 2,804 1,333 ---- ---- ----- ----- Net cash (used in) provided by financing activities (300) 496 11,475 24,138 Effect of exchange rate changes on cash and cash equivalents (176) 373 (72) 63 Net transactions with Automotive/Financing Operations 512 39 (512) (39) --- --- --- -- Net increase (decrease) in cash and cash equivalents (1,242) 3,235 (1,411) 4,269 Cash and cash equivalents at beginning of the period 14,424 12,162 18,130 8,158 ------ ------ ------ ----- Cash and cash equivalents at end of the period $13,182 $15,397 $16,719 $12,427 ====== ====== ====== ======= 22 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 21, 2004 By: /s/PETER R. BIBLE --- -------------------------- (Peter R. Bible, Chief Accounting Officer) 23 -----END PRIVACY-ENHANCED MESSAGE-----