General Motors Company
CEO : Ms. Mary T. Barra
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 28.4% YoY | 71.7% | -40.8% | 2023-01-31 |
Paul Jacobson says,
Revenue and Growth
- Full-year revenue of $156.7 billion, representing YoY growth of 23%.
- 25% YoY growth in wholesale volumes, within the objective of 25% to 30% for the year.
- 2022 full-year EBIT-adjusted of $14.5 billion, 9.2% EBIT-adjusted margins, and $7.59 in EPS diluted-adjusted.
- Q4 revenue of $43.1 billion, up 28% YoY.
Free Cash Flow and Shareholder Returns
- Generated adjusted free cash flow of $10.5 billion.
- Repurchased $2.5 billion of stock in 2022, retiring 65 million shares.
- Opportunistically early retired $1 billion of senior unsecured notes in the U.S. and $0.5 billion of unsecured term loans in GM International in 2023.
North America Results
- North America delivered Q4 EBIT-adjusted of $3.7 billion, up $1.5 billion YoY, and EBIT-adjusted margins of 10.3%.
- Production in the second half of 2022 increased with strengthening supply chain and logistics, allowing us to improve dealer inventory for certain vehicles.
- Ended 2022 with total dealer inventory, including in-transit vehicles running around 50 days with the number of vehicles physically on dealer lots improving gradually, but still approximately one third the level we were at in mid-2019, supporting a favorable supply and demand environment.
EVs and Reservations
- Strong demand for electric vehicles with inventory turning on the Bolt EV and EUV in less than 10 days.
- Over 250,000 combined reservations for the GMC HUMMER EV and Chevrolet Silverado EV.
- Strong demand for the Cadillac LYRIQ, GMC Sierra EVs as well.
Dealer Inventory Target
- Targeting to end 2023 with 50 to 60 days of total dealer inventory on a portfolio basis, down 20 to 30 days from mid-2019.
- Trucks expected to run at higher levels, reflecting greater customer-driven variation requirements, and sedans and SUVs are expected to run at this range or lower.
Mary Barra says,
Record Year in 2022
- Delivered record EBIT-adjusted and set apart from competition
- GM led the U.S. industry in total sales and increased market share
- Chevrolet and GMC delivered more than 1.1 million full-size pickups, full-size SUVs, and mid-size pickups in the U.S.
- Best year for commercial deliveries since 2006
Growing EV Portfolio
- Nine EVs in the market in North America, targeting the most popular segment at multiple price points
- Chevrolet Bolt EV and EUV saw record sales, and company plans to build more than 70,000 this year for North America and other markets
Quality Improvement
- Improved in J.D. Power U.S. Initial Quality Study while the industry went backwards
- GM and Buick brand led the industry
- Commitment to customer satisfaction and industry-leading quality helped U.S. hourly employees earn record profit sharing totaling $500 million
Expectation for Strong Year in 2023
- Expected to deliver EBIT-adjusted in the range of $10.5 billion to $12.5 billion
- Guidance includes $2 billion in cost savings in the automotive business over the next two years
- Continuing to reduce complexity at all of our products and reducing corporate overhead expenses across the board
- No planned layoffs, limiting hiring to only the most strategically important roles and using attrition to manage overall headcount
Q & A sessions,
Supply Chain Resiliency and Investment
- The strategy is to build where GM sells to have a strong supply chain.
- GM has made investments in battery plants and supply chain to have better cost advantages and supply chain resiliency.
- GM is waiting for the final rules from Treasury and is primarily focused on supporting North America production.
Operational Synergies and Cost Reduction
- GM expects frictional costs on utilization during concurrent operations with ICE and EV.
- GM expects a tremendous level of operational synergies as they ramp up productions.
- GM announced a $2 billion cost reduction program to drive efficiencies as they ramp up productions.
ICE and EV Portfolio
- The ICE portfolio remains strong, while GM is building EV factories for the future.
- GM expects a strong demand for all their vehicle programs.
No bad stock 