-- In the fourth quarter, GM earned $1.0 billion, or $1.71 per share Excluding Hughes, $934 million, or $1.67 per share -- Record revenue, market share gains in three automotive regions, strong cash generation, and improved cost performance were key highlights in 2002 -- GMAC posts eighth straight year of earnings growth
DETROIT, Jan. 16 /PRNewswire/ -- General Motors Corp. today reported record revenues and significantly improved earnings in both the calendar year and fourth quarter of 2002.
GM earned $1.7 billion on record revenue of $186.8 billion, or $3.35 diluted earnings per share of GM $1-2/3 par value common stock, compared with $601 million, or $1.77 per share, in 2001.
Excluding special items (see "Highlights") and Hughes, 2002 earnings totaled $3.9 billion, or $6.98 per share, nearly double the results in 2001 when GM earned $2.0 billion, or $3.60 per share.
Earnings totaled $1.0 billion on record quarterly revenue of $48.7 billion, or $1.71 per share. That compares with $255 million, or $0.60 per share, in the prior-year period. There were no special items other than those at Hughes in the fourth quarter of 2002.
Excluding Hughes and its special items, earnings in the fourth quarter of 2002 totaled $934 million, or $1.67 per share, more than double the $386 million, or $0.69 per share, earned in the prior-year period.
"Our strategy to leverage GM''s size, and fundamentally improve its operating efficiency continues to pay off," said GM Chairman Jack Smith. "We''re a far leaner, more flexible company, offering cars and trucks that are winners in the marketplace, which continues to drive our improved earnings."
"GM delivered strong results despite challenging global economic and market conditions," said GM President and Chief Executive Officer Rick Wagoner. "Strong launches of well-received products, aggressive marketing, improved quality and productivity, and continued cost reductions were the primary drivers of our improved performance. Our performance in 2002 gives us confidence in the strength of our fundamental operating systems, and is an excellent foundation on which we can build.
"General Motors Acceptance Corp. (GMAC) achieved its eighth consecutive year of earnings growth and fourth straight year of record earnings -- truly an outstanding performance, which was achieved despite considerable challenges in the capital markets," Wagoner said.
GM''s automotive operations generated approximately $8 billion in cash flow, as total cash generation was about $12 billion in 2002, exceeding the target of $10 billion. "We generated significantly more cash than expected," Wagoner said. "This was achieved despite the fact that the Hughes transaction, which had been a major element of our cash-generation plan, could not be completed. And, we still have a significant store of value in Hughes that we can capitalize on going forward."
The strong cash performance allowed GM to contribute a total of $4.8 billion to its U.S. pension plans during the year, including a $2.6 billion cash contribution in the fourth quarter. In addition, GM made a $1 billion cash contribution to the long-term Voluntary Employees'' Beneficiary Association (VEBA) Trust in June of 2002. Even with these contributions, net liquidity of $2.3 billion at year-end 2002 was up $1.3 billion from year- end 2001.
Cash, marketable securities, and assets of the VEBA trust invested in short-term fixed-income securities totaled $17.3 billion at Dec. 31, 2002, excluding GMAC and Hughes, up almost $6 billion from the end of 2001.
GM financial results described throughout the remainder of this release exclude special items unless otherwise noted (see "Highlights").
GM AUTOMOTIVE OPERATIONS
GM''s global automotive operations earned $563 million in the fourth quarter of 2002, compared with $66 million in the prior-year period. The increase was fueled by income growth at GM North America (GMNA) and Asia Pacific, and moderating losses in Europe and Latin America. For 2002, GMNA earned $3.0 billion, double its 2001 performance.
"For the second year in a row, we increased our market share in three of the four automotive regions, and we improved the quality of our share with stronger sales of higher-profit models," Wagoner said.
GM''s U.S. market share increased to 28.3 percent for the year, up 0.2 percentage points from 2001. "We''ve grown market share in the United States for the second consecutive year, thanks to strong core products like our full- size pickups, and mid-size and large SUVs," Wagoner said. "GM set all-time industry records for truck and SUV sales in 2002, becoming the first manufacturer ever to top 1.2 million SUV sales in a calendar year. We''re making these gains because we''re offering cars and trucks that customers really want to buy, and we''re targeting market share gains again in 2003 as we introduce 12 new vehicles in the United States alone this year."
The pricing environment continued to be challenging, with vehicle prices continuing to decline in North America. Net price retention was negative 3.2 percent in the fourth quarter of 2002, and negative 2.1 percent for the year. Higher production volume and significant improvements in structural and material costs more than offset the continued pricing pressures, leading to more than a 50 percent improvement in GMNA''s fourth-quarter net income compared with the same period in 2001. Year-end dealer inventories were well positioned at slightly more than a million units.
GM Europe (GME) reported a loss of $129 million in the fourth quarter of 2002, an improvement from the $240 million loss in the year-ago period. Significant progress in reducing material and structural costs and increased volume were partially offset by higher losses at Saab. For 2002, GME had a loss of $549 million, compared with a loss of $767 million in 2001.
"We''ve made very good progress on the cost side in Europe, and we continue to focus on revenue growth," Wagoner said. "We''ve mounted a major product offensive and expect the new Opel/Vauxhall and Saab models, along with expanded diesel engine availability, to drive increased sales. We''re pleased with the progress we''re making in turning around our Opel/Vauxhall operations, and we are intensifying our efforts to cut costs and improve sales at Saab."
GM Asia-Pacific (GMAP) reported a profit of $66 million in the fourth quarter of 2002 compared with earnings of $25 million a year ago, led by continued strong performance at GM''s Australia-based Holden and Shanghai GM in China. The earnings also reflect better-than-expected results from GM''s equity alliances. The fourth-quarter-2002 results included GM''s share of start-up related losses at GM Daewoo Auto & Technology Co., which totaled approximately $50 million. For 2002, GMAP earned $188 million, compared with $77 million in 2001.
"We are very pleased with our steady sales and earnings progress in Asia," Wagoner said. "Holden continues to perform very well, and Shanghai GM is aggressively and profitably expanding its capacity and model lineup in China."
GM Latin America/Africa/Mid-East (GMLAAM) reported a loss of $7 million in the fourth quarter of 2002, a significant improvement versus its loss of $111 million in the year-ago quarter. Results there were negatively affected by the general economic downturn in the region and turmoil in Venezuela and Argentina. For 2002, GMLAAM had a loss of $181 million, compared with a loss of $80 million in 2001.
"Responding to the challenging economic conditions, we continued to reduce our costs and grew market share by nearly one percentage point on the strength of new products, such as the new Corsa and the Chevrolet Meriva. We strengthened our lead as the number-one manufacturer in the region, and we''re well positioned to generate solid earnings when the economy recovers," Wagoner said.
GMAC
GMAC earned $524 million in the fourth quarter of 2002 -- an all-time fourth-quarter record. These results represent an increase of more than 20 percent from fourth-quarter earnings of $435 million a year ago, with the improvement driven by strong results from automotive finance and mortgage operations. For 2002, GMAC earned an all-time record $1.9 billion, compared with $1.8 billion in 2001.
"GMAC continues to be a key contributor to GM''s profitability," Wagoner said. "Eight consecutive years of annual income growth demonstrates we have a solid operating strategy and an effective approach to meet the challenges of the difficult capital-funding environment."
HUGHES
Hughes had a loss of $84 million in the fourth quarter of 2002, compared with a loss of $131 million in the prior-year period. The results primarily reflect continued improvement in the operating performance of DIRECTV U.S. Revenue, led by the growing subscriber base of DIRECTV, totaled $2.5 billion in the fourth quarter of 2002, up from $2.3 billion in the same quarter last year. Total DIRECTV subscriptions in the United States increased approximately 256,000 from the third quarter of 2002 to 11.2 million. For 2002, Hughes had a loss of $467 million, compared with a loss of $525 million in 2001.
Including special items disclosed by Hughes yesterday, earnings totaled $86 million in the fourth quarter of 2002. The net effect of the fourth- quarter special items totaled a favorable $170 million after taxes (see "Highlights").
PROFIT SHARING
General Motors also announced that approximately 130,000 hourly employees in the United States will qualify for profit-sharing payments in 2003. A typical U.S. hourly employee, eligible under the profit-sharing program, will qualify for a payment of approximately $940.
LOOKING AHEAD
GM expects moderate economic growth in 2003 in the United States, resulting in total U.S. industry vehicle sales of approximately 16.5 million units. In Europe, total industry vehicle sales are expected to be about 19 million units. GM''s 2003 first-quarter production forecast for North America is now estimated at 1.43 million units, up nearly 6 percent from the first quarter of 2002. GM estimates that earnings in the first quarter of 2003 will be approximately $1.50 per share, and the calendar-year earnings target is approximately $5.00 per share, excluding Hughes and any special items. In the fourth quarter of 2002, GM''s effective income-tax rate, excluding financing and insurance operations, was 26 percent, the level expected for GM in each of the next several years.
General Motors, the world''s largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide, and has been the global automotive sales leader since 1931. More information on GM can be found at
www.gm.com/ .
In this press release and related comments by General Motors management, our use of the words "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions is intended to identify forward looking statements. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors that are described in GM''s most recent report on SEC Form 10-K (at page II-15, 16) 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.
General Motors Corporation List of Special Items - After Tax (dollars in millions) Fourth Quarter 2002 --------------------------------- GM $1-2/3 Par Value Common Stock Total Diluted Hughes GM EPS ------ ------ ------------ Reported Net Income $86 $1,020 $1.71 Hughes EchoStar Termination Payment (A) (372) (372) (0.20) Hughes Write-down of Crown Media Investment (B) 27 27 0.02 Hughes Write-down of XM Radio Investment (C) 63 63 0.03 Hughes Costs Related to Shut-down of DIRECTV DSL(TM) Service (D) 97 97 0.05 Hughes Loss on HTIL Transaction (E) 15 15 0.01 -- --- ---- Adjusted Income (Loss) $(84) $850 $1.62 ==
= (A) The Hughes EchoStar Termination Payment reflects the $600 million EchoStar paid to Hughes in connection with the termination of the October 28, 2001 merger agreement between Hughes and EchoStar. (B) The Hughes Write-down of Crown Media Investment relates to the recognition of an other than temporary decline in the market value of Hughes'' investment in Crown Media. (C) The Hughes Write-down of XM Radio Investment relates to the recognition of an other than temporary decline in the market value of Hughes'' investment in XM Radio. (D) The Hughes Costs Related to Shut-down of DIRECTV DSL(TM) Service relates to the costs to close the business including contract termination payments, write-offs of equipment, and severance payments. (E) The Hughes Loss on HTIL Transaction relates to the exchange of Hughes'' ownership in Hughes Tele.com (India) Limited for an equity interest in and long term receivables from Tata Teleservices Limited. NOTE: There were no special items presented in the fourth quarter of 2001. General Motors Corporation List of Special Items - After Tax (dollars in millions) Year to Date 2002 ------------------------------------------------- GM $1-2/3 Par Value Common Stock Other Total Diluted GMNA GME Hughes ACO GM EPS ---- --- ------ ----- ----- ---------- Reported Net Income (Loss) $2,900 $(1,011) $(239) $(1,803) $1,736 $3.35 Hughes EchoStar Termination Payment (A) - - (372) - (372) (0.21) Hughes Write-down of Crown Media Investment (B) - - 27 - 27 0.02 Hughes Write-down of XM Radio Investment (C) - - 63 - 63 0.04 Hughes Costs Related to Shut-down of DIRECTV DSL(TM) Service (D) - - 97 - 97 0.05 Hughes Loss on HTIL Transaction (E) - - 15 - 15 0.01 Write-down of Fiat Auto Investment (F) - - - 1,371 1,371 2.44 GMNA Production Footprint (G) 116 - - - 116 0.21 Hughes Sale of Equity Interests (H) - - (68) - (68) (0.04) GME End of Life Vehicle Charge (I) - 55 - - 55 0.10 GME Restructuring Charge (J) - 407 - - 407 0.72 Hughes Space Shuttle Settlement (K) - - (59) - (59) (0.04) Hughes GECC Contractual Dispute (L) - - 51 - 51 0.03 Hughes Loan Guarantee Charge (M) - - 18 - 18 0.01 ----- --- --- --- ----- ---- Adjusted Income (Loss) $3,016 $(549) $(467) $(432) $3,457 $6.69
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= See notes below General Motors Corporation List of Special Items - After Tax See previous pages for notes (A) - (E) (F) The Write-down of Fiat Auto Investment relates to GM''s investment in Fiat Auto Holdings, B.V. ("Fiat Auto") and reflects completion of an impairment study relating to the carrying value of that investment, which was reduced from $2.4 billion to $220 million. (G) The GMNA Production Footprint charge primarily relates to costs associated with the transfer of commercial truck production from Janesville, Wisconsin, to Flint, Michigan. (H) The Hughes Sale of Equity Interests relates primarily to the investment in the multimedia company Thomson. (I) The GME End of Life Vehicle Charge relates to the European Union''s directive requiring member states to enact legislation regarding end-of-life vehicles to be the responsibility of manufacturers for dismantling and recycling vehicles they have sold. (J) The GME Restructuring Charge relates to the initiative implemented in the first quarter of 2002 to improve the competitiveness of GM''s automotive operations in Europe. (K) The Hughes Space Shuttle Settlement relates to the favorable resolution of a lawsuit that was filed against the U.S. government on March 22, 1991, based upon the National Aeronautics and Space Administration''s (NASA) breach of contract to launch ten satellites on the Space Shuttle. (L) The Hughes GECC Contractual Dispute relates to an expected loss associated with a contractual dispute with General Electric Capital Corporation. (M) The Hughes Loan Guarantee Charge relates to a loan guarantee for a Hughes Network Systems'' affiliate in India. General Motors Corporation List of Special Items - After Tax (dollars in millions) Year to Date 2001 ---------------------------------------- Other GMNA GME GMLAAM GMAP Hughes ACO ---- --- ------ ---- ------ ----- Reported Net Income (Loss) $1,270 $(765) $(81) $(57) $(618) $(916) Ste. Therese Charge (A) 194 - - - - - Raytheon Settlement (B) - - - - - 474 Gain on Sale of Thomson (C) - - - - (67) - SkyPerfecTV! Writedown (D) - - - - 133 - Severance Charge (E) - - - - 40 - DirecTV Japan Adjustment (F) - - - - (21) - Isuzu Restructuring (G) - - - 133 - - SFAS 133 (H) 14 (2) 1 1 8 - ----- --- -- -- --- --- Adjusted Income (Loss) $1,478 $(767) $(80) $77 $(525) $(442)
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GM $1-2/3 Par Value Common Stock Total Other Total Diluted ACO GMAC FIO GM EPS ----- ------ ----- ----- ------------ Reported Net Income (Loss)$(1,167) $1,786 $(18) $601 $1.77 Ste. Therese Charge (A) 194 - - 194 0.35 Raytheon Settlement (B) 474 - - 474 0.85 Gain on Sale of Thomson (C) (67) - - (67) (0.04) SkyPerfecTV! Writedown (D) 133 - - 133 0.08 Severance Charge (E) 40 - - 40 0.02 DirecTV Japan Adjustment (F) (21) - - (21) (0.01) Isuzu Restructuring (G) 133 - - 133 0.24 SFAS 133 (H) 22 (34) - (12) (0.03) --- ----- -- ----- ---- Adjusted Income (Loss) $(259) $1,752 $(18) $1,475 $3.23
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= See notes below General Motors Corporation List of Special Items - After Tax A) The Ste. Therese Charge relates to the closing of the Ste. Therese, Quebec assembly plant. B) The Raytheon Settlement relates to Hughes'' settlement with the Raytheon Company on a purchase price adjustment related to Raytheon''s 1997 merger with Hughes Defense. C) The Gain on Sale of Thomson relates to Hughes'' sale of 4.1 million shares of Thomson Multimedia common stock. D) The SkyPerfecTV! Writedown relates to Hughes'' non-cash charge from the revaluation of its investment. E) The Severance Charge relates to Hughes'' 10% company-wide workforce reduction in the U.S. F) The DirecTV Japan Adjustment relates to a favorable adjustment to the expected costs associated with the shutdown of Hughes'' DirecTV Japan business. G) The Isuzu Restructuring charges include General Motors'' portion of severance payments and asset impairments that were part of the second quarter restructuring of its affiliate Isuzu Motors Ltd. H) The SFAS 133 Adjustment represents the net impact during the first quarter 2001 from initially adopting SFAS No. 133, Accounting for Derivatives and Hedging Activities. General Motors Corporation Adjusted Corporate Financial Results Fourth Quarter Year to Date -------------- -------------- 2002(1) 2001(1) 2002(1) 2001(1) ---- ---- ---- ---- Total net sales and revenues ($Mil''s) $48,108 $45,950 $186,244 $177,268 Excluding Hughes $45,600 $43,665 $177,276 $168,950 Memo: Reported $48,656 $186,763 $45,950 $177,260 Consolidated adjusted income ($Mil''s) $850 $255 $3,457 $1,475 Excluding Hughes $934 $386 $3,924 $2,000 Net margin from adjusted income 1.8% 0.6% 1.9% 0.8% Excluding Hughes 2.0% 0.9% 2.2% 1.2% GM $1-2/3 par value earnings per share Basic EPS $1.62 $0.61 $6.72 $3.26 Diluted EPS $1.62 $0.60 $6.69 $3.23 Diluted EPS excluding Hughes $1.67 $0.69 $6.98 $3.60 GM Class H earnings per share Basic EPS $(0.06) $(0.12) $(0.38) $(0.48) Diluted EPS $(0.06) $(0.12) $(0.38) $(0.48) Earnings attributable to GM $1-2/3 par value ($Mil''s) Adjusted income $850 $255 $3,457 $1,475 Preferred dividends - (23) (47) (99) Losses attributable to GM Class H 59 105 352 419 --- --- ----- ----- Total earnings attributable to GM $1-2/3 par value $909 $337 $3,762 $1,795
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== GM $1-2/3 par value average shares outstanding (Mil''s) Basic shares 560 556 560 551 Diluted shares 561 559 562 556 Cash dividends per share of common stocks GM $1-2/3 par value $0.50 $0.50 $2.00 $2.00 GM Class H - - - - Book value per share of common stocks at Dec. 31 GM $1-2/3 par value $9.06 $24.79 GM Class H $1.81 $4.96 Total cash at Dec. 31, Excluding Hughes($Bil''s) (2) $17.3 $11.5 Automotive, Communications Services, and Other Operations ($Mil''s) Depreciation $1,282 $1,095 $4,723 $4,354 Amortization of special tools 751 613 2,647 2,360 Amortization of intangible assets 21 67 27 285 ----- ----- ----- ----- Total $2,054 $1,775 $7,397 $6,999
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== See footnotes General Motors Corporation Adjusted Segment Financial Results Fourth Quarter Year to Date -------------- -------------- 2002(1) 2001(1) 2002(1) 2001(1) ---- ---- ---- ---- (dollars in millions) Total net sales and revenues GMNA $28,864 $27,446 $114,444 $106,938 GME 6,763 6,084 23,912 23,700 GMLAAM 1,342 1,392 5,110 5,864 GMAP 1,180 1,063 4,524 4,201 ------ ------ ------- ------- Total GMA 38,149 35,985 147,990 140,703 Hughes 2,508 2,285 8,968 8,318 Other 384 1,029 2,260 2,470 ------ ------ ------- ------- Total ACO 41,041 39,299 159,218 151,491 GMAC 7,066 6,565 26,793 25,480 Other Financing 1 86 233 297 ------ ------ ------- ------- Total FIO 7,067 6,651 27,026 25,777 ------ ------ ------- ------- Consolidated net sales and revenues $48,108 $45,950 $186,244 $177,268
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= Pre-tax income (loss) GMNA $838 $528 $4,198 $2,051 GME (233) (345) (797) (1,092) GMLAAM (6) (150) (240) (79) GMAP 45 (17) 10 27 --- --- ----- ----- Total GMA 644 16 3,171 907 Hughes (3) (92) (213) (640) (786) Other (274) (135) (681) (537) --- --- ----- ----- Total ACO 278 (332) 1,850 (416) GMAC 778 730 3,001 2,872 Other Financing 4 (24) (30) (58) --- --- ----- ----- Total FIO 782 706 2,971 2,814 ----- --- ----- ----- Consolidated pre-tax income $1,060 $374 $4,821 $2,398
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== Net income (loss) GMNA $633 $392 $3,016 $1,478 GME (129) (240) (549) (767) GMLAAM (7) (111) (181) (80) GMAP 66 25 188 77 --- --- ----- ----- Total GMA 563 66 2,474 708 Hughes (3)(4) (84) (131) (467) (525) Other (199) (120) (432) (442) --- --- ----- ----- Total ACO 280 (185) 1,575 (259) GMAC 524 435 1,870 1,752 Other Financing 46 5 12 (18) --- --- ----- ----- Total FIO 570 440 1,882 1,734 --- --- ----- ----- Consolidated adjusted income $850 $255 $3,457 $1,475
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== See footnotes General Motors Corporation Supplementary Adjusted Segment Financial Results Fourth Quarter Year to Date -------------- -------------- 2002(1) 2001(1) 2002(1) 2001(1) ---- ---- ---- ---- (dollars in millions) Income tax expense (benefit) GMNA $240 $150 $1,227 $537 GME (62) (72) (172) (284) GMLAAM 3 (38) (76) (17) GMAP 43 17 55 24 --- --- ----- --- Total GMA $224 $57 $1,034 $260
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Equity income (loss) and minority interests GMNA $35 $14 $45 $(36) GME 42 33 76 41 GMLAAM 2 1 (17) (18) GMAP 64 59 233 74 --- --- --- -- Total GMA $143 $107 $337 $61
== Effective income tax rate GMNA 28.6% 28.4% 29.2% 26.2% GME 26.6% 20.9% 21.6% 26.0% GMLAAM (50.0%) 25.3% 31.7% 21.5% GMAP 95.6% (100.0%) - 88.9% Total ACO 26.0% 31.0% 28.7% 31.0% Net margins GMNA 2.2% 1.4% 2.6% 1.4% GME (1.9%) (3.9%) (2.3%) (3.2%) GMLAAM (0.5%) (8.0%) (3.5%) (1.4%) GMAP 5.6% 2.4% 4.2% 1.8% Total GMA 1.5% 0.2% 1.7% 0.5% Hughes (3)(4) (3.3%) (5.7%) (5.2%) (6.3%) Total ACO 0.7% (0.5%) 1.0% (0.2%) GMAC 7.4% 6.6% 7.0% 6.9% Consolidated net income 1.8% 0.6% 1.9% 0.8% See footnotes General Motors Corporation Operating Statistics Fourth Quarter Year to Date -------------- -------------- 2002 2001 2002 2001 ---- ---- ---- ---- (units in thousands) Worldwide Wholesale Sales United States - Cars 535 503 2,090 2,075 United States - Trucks 754 648 2,810 2,463 ----- ----- ----- ----- Total United States 1,289 1,151 4,900 4,538 Canada, Mexico, and Other 205 166 786 649 ----- ----- ----- ----- Total GMNA 1,494 1,317 5,686 5,187 GME 420 401 1,645 1,760 GMLAAM 164 166 640 666 GMAP 92 100 405 460 ----- ----- ----- ----- Total Worldwide 2,170 1,984 8,376 8,073
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== Vehicle Unit Deliveries Chevrolet - Cars 161 193 747 830 Chevrolet - Trucks 466 539 1,896 1,860 Pontiac 115 115 517 533 GMC 146 163 561 555 Buick 108 105 432 406 Oldsmobile 32 44 155 234 Saturn 69 61 280 261 Cadillac 54 47 200 172 Other 23 14 71 54 ----- ----- ----- ----- Total United States 1,174 1,281 4,859 4,905 Canada, Mexico, and Other 192 172 764 686 ----- ----- ----- ----- Total GMNA 1,366 1,453 5,623 5,591 GME 392 382 1,662 1,800 GMLAAM 164 167 647 665 GMAP 156 136 605 524 ----- ----- ----- ----- Total Worldwide 2,078 2,138 8,537 8,580
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== Market Share United States - Cars 25.5% 25.8% 25.4% 26.9% United States - Trucks 32.1% 31.4% 31.0% 29.2% Total United States 29.2% 28.9% 28.3% 28.1% Total North America 28.6% 28.1% 28.0% 27.6% Total Europe 8.8% 8.5% 8.7% 9.1% Latin America (5) 23.9% 23.4% 23.8% 22.4% Asia and Pacific 4.4% 4.3% 4.2% 4.0% Total Worldwide 15.2% 15.5% 14.9% 15.0% U.S. Retail/Fleet Mix % Fleet Sales - Cars 29.7% 14.8% 28.9% 25.7% % Fleet Sales - Trucks 10.3% 7.4% 11.3% 12.1% Total Vehicles 17.9% 10.4% 18.8% 18.4% Retail Lease as % of Retail Sales Total Smartlease and Smartbuy 7.2% 4.3% 10.3% 11.9% Days Supply of Inventory at December 31 United States - Cars 77 93 United States - Trucks 62 75 GMNA Capacity Utilization (2 shift rated) 94.3% 83.7% 88.4% 79.7% GMNA Net Price (3.2%) (1.5%) (2.1%) (1.3%) See footnotes General Motors Corporation Operating Statistics Fourth Quarter Year to Date -------------- -------------- 2002 2001 2002 2001 ---- ---- ---- ---- GMAC''s U.S. Cost of Borrowing 4.28% 4.76% 4.33% 5.51% Current Debt Spreads Over U.S. Treasuries 2 Year 330 bp 195 bp 5 Year 335 bp 215 bp 10 Year 335 bp 225 bp Worldwide Employment at Dec. 31 (in 000''s) United States Hourly 121 126 United States Salary 40 42 --- --- Total United States 161 168 Canada, Mexico, and Other 32 34 --- --- GMNA 193 202 GME 66 73 GMLAAM 24 23 GMAP 11 11 Hughes 12 12 GMAC 31 28 Other 12 13 --- --- Total 349 362
Worldwide Payrolls ($Bil''s) $5.4 $4.8 $21.0 $19.8 Footnotes: --------- (1) Adjusted amounts for all periods represent the reported amounts excluding the effects of special items as detailed on previous pages. (2) Represents total cash for Automotive, Communications Services, and Other Operations, excluding Hughes, which includes cash and marketable securities, as well as $3.0 billion invested in short-term fixed income securities of the Corporation''s Voluntary Employees'' Beneficiary Association Trust. (3) The Q4 2001 and Year-to-Date 2001 amounts exclude the effects of purchase accounting adjustments related to General Motors'' acquisition of Hughes in 1985. This purchase accounting adjustment is not recorded in 2002 because the related goodwill is no longer being amortized effective January 1, 2002 in accordance with SFAS No. 142, Goodwill and Other Intangible Assets. (4) Excludes Hughes Series A Preferred Stock dividends paid to General Motors. (5) Latin America excludes the Middle East and Africa. CONSOLIDATED STATEMENTS OF INCOME Three Months Ended December 31, ------------------------------- 2002 2001 ---- ---- (dollars in millions except per share amounts) GENERAL MOTORS CORPORATION AND SUBSIDIARIES Total net sales and revenues $48,656 $45,950 ------ ------ Cost of sales and other expenses 39,827 37,336 Selling, general, and administrative expenses 5,680 6,131 Interest expense 1,799 2,109 ------ ------- Total costs and expenses 47,306 45,576 ------ ------ Income before income taxes and minority interests 1,350 374 Income tax expense 396 180 Equity income and minority interests 66 61 ------ --- Net income 1,020 255 Dividends on preference stocks - (23) ------ --- Earnings attributable to common stocks $1,020 $232
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Basic earnings (losses) per share attributable to common stocks Earnings per share attributable to $1-2/3 par value $1.71 $0.61
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= Earnings per share attributable to Class H $0.06 $(0.12)
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= Earnings (losses) per share attributable to common stocks assuming dilution Earnings per share attributable to $1-2/3 par value $1.71 $0.60
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= Earnings per share attributable to Class H $0.06 $(0.12)
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= Three Months Ended December 31, ------------ 2002 2001 ---- ---- (dollars in millions) AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS Total net sales and revenues $41,589 $39,299 ------ ------ Cost of sales and other expenses 37,010 35,083 Selling, general, and administrative expenses 3,840 4,206 ------ ------- Total costs and expenses 40,850 39,289 ------ ------ Interest expense 83 222 Net expense from transactions with Financing and Insurance Operations 88 120 --- --- Income (loss) before income taxes and minority interests 568 (332) Income tax expense (benefit) 195 (76) Equity income and minority interests 77 71 --- --- Net income (loss) - Automotive, Communications Services, and Other Operations $450 $(185)
FINANCING AND INSURANCE OPERATIONS Total revenues $7,067 $6,651 ----- ----- Interest expense 1,716 1,887 Depreciation and amortization expense 1,432 1,428 Operating and other expenses 2,125 1,928 Provisions for financing and insurance losses 1,100 822 ----- ----- Total costs and expenses 6,373 6,065 ----- ----- Net income from transactions with Automotive, Communications Services, and Other Operations (88) (120) --- --- Income before income taxes and minority interests 782 706 Income tax expense 201 256 Equity loss and minority interests (11) (10) --- --- Net income - Financing and Insurance Operations $570 $440
Years Ended December 31, ----------- ------------ 2002 2001 2000 ---- ---- ---- (dollars in millions except per share amounts) GENERAL MOTORS CORPORATION AND SUBSIDIARIES Total net sales and revenues $186,763 $177,260 $184,632 ------- ------- ------- Cost of sales and other expenses 153,344 144,093 145,664 Selling, general, and administrative expenses 23,624 23,302 22,252 Interest expense 7,715 8,347 9,552 ------- ------- ------- Total costs and expenses 184,683 175,742 177,468 ------- ------- ------- Income before income taxes and minority interests 2,080 1,518 7,164 Income tax expense 533 768 2,393 Equity income (loss) and minority interests 189 (149) (319) ----- --- ----- Net income 1,736 601 4,452 Dividends on preference stocks (47) (99) (110) ----- --- ----- Earnings attributable to common stocks $1,689 $502 $4,342
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== Basic earnings (losses) per share attributable to common stocks Earnings per share attributable to $1-2/3 par value $3.37 $1.78 $6.80
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= Earnings per share attributable to Class H $(0.21) $(0.55) $0.56
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= Earnings (losses) per share attributable to common stocks assuming dilution Earnings per share attributable to $1-2/3 par value $3.35 $1.77 $6.68
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= Earnings per share attributable to Class H $(0.21) $(0.55) $0.55
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= Years Ended December 31, ------------------------ 2002 2001 2000 ---- ---- ---- (dollars in millions) AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS Total net sales and revenues $159,737 $151,491 $160,627 ------- ------- ------- Cost of sales and other expenses 144,550 135,620 138,303 Selling, general, and administrative expenses 14,993 16,043 16,246 ------- ------- ------- Total costs and expenses 159,543 151,663 154,549 ------- ------- ------- Interest expense 789 751 815 Net expense from transactions with Financing and Insurance Operations 296 435 682 --- ----- ----- Income (loss) from continuing operations before income taxes and minority interests (891) (1,358) 4,581 Income tax (benefit) expense (489) (270) 1,443 Equity income (loss) and minority interests 256 (79) (299) --- ----- ----- Net income (loss) - Automotive, Communications Services, and Other Operations $(146) $(1,167) $2,839
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== FINANCING AND INSURANCE OPERATIONS Total revenues $27,026 $25,769 $24,005 ------ ------ ------ Interest expense 6,926 7,596 8,737 Depreciation and amortization expense 5,541 5,857 5,982 Operating and other expenses 8,356 7,348 5,805 Provisions for financing and insurance losses 3,528 2,527 1,580 ------ ------ ------ Total costs and expenses 24,351 23,328 22,104 ------ ------ ------ Net income from transactions with Automotive, Communications Services, and Other Operations (296) (435) (682) --- --- --- Income before income taxes and minority interests 2,971 2,876 2,583 Income tax expense 1,022 1,038 950 Equity loss and minority interests (67) (70) (20) ----- ----- ----- Net income - Financing and Insurance Operations $1,882 $1,768 $1,613
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== CONSOLIDATED BALANCE SHEETS December 31, ------------ GENERAL MOTORS CORPORATION AND SUBSIDIARIES 2002 2001 ---- ---- ASSETS (dollars in millions) Automotive, Communications Services, and Other Operations Cash and cash equivalents $13,291 $8,432 Marketable securities 2,174 790 ------- ------ Total cash and marketable securities 15,465 9,222 Accounts and notes receivable (less allowances) 5,861 5,406 Inventories (less allowances) 10,302 10,034 Equipment on operating leases (less accumulated depreciation) 5,305 4,524 Deferred income taxes and other current assets 10,938 7,877 ------ ------- Total current assets 47,871 37,063 Equity in net assets of nonconsolidated associates 5,044 4,950 Property - net 36,152 34,908 Intangible assets - net 14,611 13,721 Deferred income taxes 32,759 22,294 Other assets 7,323 17,274 ------- -------- Total Automotive, Communications Services, and Other Operations assets 143,760 130,210 Financing and Insurance Operations Cash and cash equivalents 8,158 10,123 Investments in securities 14,651 11,279 Finance receivables - net 134,647 109,211 Investment in leases and other receivables 35,466 34,618 Other assets 33,798 26,971 Net receivable from Automotive, Communications Services, and Other Operations 1,089 1,557 ------- ------- Total Financing and Insurance Operations assets 227,809 193,759 ------- ------- Total assets $371,569 $323,969
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= LIABILITIES AND STOCKHOLDERS'' EQUITY Automotive, Communications Services, and Other Operations Accounts payable (principally trade) $20,169 $18,297 Loans payable 1,516 2,402 Accrued expenses 42,304 34,090 Net payable to Financing and Insurance Operations 1,089 1,557 ------ ------ Total current liabilities 65,078 56,346 Long-term debt 16,651 10,726 Postretirement benefits other than pensions 34,275 34,515 Pensions 22,709 10,790 Other liabilities and deferred income taxes 15,461 13,794 ------- ------- Total Automotive, Communications Services, and Other Operations liabilities 154,174 126,171 Financing and Insurance Operations Accounts payable 6,982 7,900 Debt 183,773 153,186 Other liabilities and deferred income taxes 18,992 16,259 ------- ------- Total Financing and Insurance Operations liabilities 209,747 177,345 ------- ------- Total liabilities 363,921 303,516 Minority interests 834 746 Stockholders'' equity $1-2/3 par value common stock (outstanding, 560,447,797. and 559,044,427 shares) 936 932 Class H common stock (outstanding, 958,284,272 and 877,505,382 shares) 96 88 Capital surplus (principally additional paid-in capital) 21,583 21,519 Retained earnings 10,031 9,463 ------ ------- Subtotal 32,646 32,002 Accumulated foreign currency translation adjustments (2,784) (2,919) Net unrealized loss on derivatives (205) (307) Net unrealized gains on securities 372 512 Minimum pension liability adjustment (23,215) (9,581) ------- ------- Accumulated other comprehensive loss (25,832) (12,295) ------- ------- Total stockholders'' equity 6,814 19,707 ------- ------- Total liabilities and stockholders'' equity $371,569 $323,969
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= CONSOLIDATED STATEMENTS OF CASH FLOWS For The Years Ended December 31, 2002 2001 2000 --------------- --------------- --------------- Auto., Auto., Auto., Comm. Comm. Comm. Serv., Finan. Serv., Finan. Serv., Finan. and and and and and and Other Insur. Other Insur. Other Insur. ------ ------ ------ ------ ------ ------- (dollars in millions) Cash flows from operating activities Income (loss) from continuing operations (146) 1,882 (1,167) 1,768 $2,839 $1,613 Adjustments to reconcile income (loss)from continuing operations to net cash provided by operating activities Depreciation and amortization expenses 7,397 5,541 7,051 5,857 7,429 5,982 Postretirement benefits other than pensions, net of payments and VEBA contributions (223) 15 1,861 20 772 27 Pension expense, net of contributions (3,380) - 148 - 128 - Net change in mortgage loans - (4,377) - (4,241) - 242 Net change in mortgage securities - (656) - (777) - (577) Operating leases - acquisitions (5,595) - (4,997) - (6,000) - Operating leases - liquidations 4,774 - 6,116 - 6,008 - Change in other investments and miscellaneous assets 3,024 3,757 959 (958) 1,154 (1,692) Change in other operating assets and liabilities 4,314 (300) (2,056) 719 724 2,505 Other (1,695) 2,776 (357) 3,039 (1,966) 2,257 ------ ----- ---- ----- ------ ----- Net cash provided by operating activities $8,470 $8,638 $7,558 $5,427 $11,088 $10,357 ------ ------ ------ ------ ------- ------- Cash flows from investing activities Expenditures for property (6,986) (457) (8,611) (20) (9,200) (522) Investments in marketable securities - acquisitions (2,228) (37,158) (857) (34,273) (2,520) (24,599) Investments in marketable securities - liquidations 873 34,815 1,228 33,124 3,057 24,114 Net change in mortgage servicing rights - (1,711) - (2,075) - (1,084) Increase in finance receivables - (141,567) - (107,440) - (73,754) Proceeds from sales of finance receivables - 115,678 - 95,949 - 59,221 Operating leases - acquisitions - (16,624) - (12,938) - (15,415) Operating leases - liquidations - 13,994 - 11,892 - 10,085 Investments in companies, net of cash acquired (690) (182) (743) (542) (4,302) (2,077) Net investing activity with Financing and Insurance Operations 400 - (500) - (1,069) - Other 1,700 (834) (768) (416) 2,504 93 ----- ---- ---- ---- ----- ------ Net cash used in investing activities (6,931) (34,046) (10,251) (16,739) (11,530)(23,938) ----- ------ ------ ------ ------ ------ Cash flows from financing activities Net increase (decrease) in loans payable (1,482) 523 194 (20,238) 142 7,723 Long-term debt - borrowings 6,295 47,404 5,849 58,522 5,279 22,481 Long-term debt - repayments (328) (24,561) (2,602) (18,906) (6,196)(16,263) Net financing activity with Automotive, Communications Services, and Other Operations - (400) - 500 - 1,069 Repurchases of common and preference stocks (97) - (264) - (1,613) - Proceeds from issuing common stocks 62 - 100 - 2,792 - Proceeds from sales of treasury stocks 19 - 418 - - - Cash dividends paid to stockholders (1,167) - (1,201) - (1,294) - ----- ------ ------ ------ ------ ------ Net cash provided by (used in) financing activities 3,302 22,966 2,494 19,878 (890) 15,010 ----- ------ ------ ------ ------ ------ Effect of exchange rate changes on cash and cash equivalents 485 10 (74) (22) (249) (6) Net transactions with Automotive/Financing Operations (467) 467 (414) 414 970 (970) --- --- --- ------ --- --- Net (decrease) increase in cash and cash equivalents 4,859 (1,965) (687) 8,958 (611) 453 Cash and cash equivalents at beginning of the year 8,432 10,123 9,119 1,165 9,730 712 ----- ------ ----- ------ ----- ----- Cash and cash equivalents at end of the year $13,291 $8,158 $8,432 $10,123 $9,119 $1,165
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General Motors Corporation
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