General Motors Co. ( GM ) reported a 28.0%
fall in earnings to 67 cents per share in the first quarter of the
year from 93 cents in the same quarter of 2012 (all excluding
special items) due to lower earnings generated from the company's
all geographic operations except Europe.
Despite this, the automaker's earnings exceeded the Zacks
Consensus Estimate by 11 cents per share.DENSO CORP (DNZOY): Get Free ReportFORD MOTOR CO (F): Free Stock Analysis ReportGENERAL MOTORS (GM): Free Stock Analysis ReportVISTEON CORP (VC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
Net earnings fell 31.3% to $1.1 billion from $1.6 billion in the
first quarter of 2012. Including a net loss from special items,
earnings were $0.9 billion or 58 cents per share in the quarter
compared with $1.0 billion or 60 cents a year ago.
Revenues in the quarter slid 2.4% to $36.9 billion, despite a 3.6%
rise in retail unit sales to 2.4 million vehicles globally. It was
higher than the Zacks Consensus Estimate of $36.4 billion.
Wholesale vehicle sales edged down 2.5% to 1.6 million units. The
automaker occupied a worldwide market share of 11.4% during the
quarter compared with 11.2% a year-ago.
Adjusted earnings before interest and tax (EBIT) was $1.8 billion
in the quarter compared with $2.2 billion the first quarter of
2012. EBIT for 2013 included the impact of $0.1 billion in
GM North America (GMNA) generated revenues of $23.0 billion during
the quarter, down a 0.8% rise from the prior year. Adjusted EBIT
decreased 13.9% to $1.4 billion from $1.6 billion in the first
quarter of 2012.
GM Europe (GME) had revenues of $4.8 billion, an 8.3% fall from
the previous year quarter. The segment reported a narrower adjusted
loss of $175 million in the quarter compared with $294 million in
the year-ago quarter.
GM International Operations (GMIO) generated revenues of $4.8
billion, reflecting a 3.9% decline from the prior year. Adjusted
EBIT was $495 million in the quarter, down 5.0% from $521 million
in the comparable quarter of 2012.
GM South America (GMSA) had revenues of $3.7 billion, a decline of
4.6% from the prior-year quarter. The segment had an adjusted loss
of $38 million in the quarter in sharp contrast to a profit of $153
million in the first quarter of 2012.
GM Financial reported a 25.3% rise in revenues to $540 million
during the quarter. Adjusted EBIT was almost flat at $180 million
compared with $181 million in the year-ago quarter.
General Motors had cash and cash equivalents of $20.6 billion as
of Mar 31, 2013 compared with $18.4 billion as of Dec 31, 2012.
Total debt (Automotive and Financial) increased to $18.4 billion as
of Mar 31, 2013 from $16.1 billion as of Dec 31, 2012.
Consequently, debt-to-capitalization ratio increased to 32.9% as of
Mar 31, 2013 from 30.7% as of Dec 31, 2012.
During the quarter, the company had a net cash flow of $543
million from automotive operations, significantly down from $2.3
billion in the year-ago quarter. The decline was mainly
attributable to lower earnings and a series of timing-related items
that GM expects to reverse during the rest of 2013.
After deducting $1.9 billion and $2.0 billion of capital
expenditures in the first quarter of 2013 and 2012, respectively,
the company had a free cash flow use of $1.4 billion during the
quarter compared with an inflow of $282 million a year ago.
General Motors is gearing up for more than 40 major vehicle
launches in 2013 across the globe in order to drive sales and
revenues. In addition, the company expects that its European
results will improve further based on its cost reduction
GM is a leading global automotive company. The company has
presence in almost 120 countries and has facilities located in 30
countries. It currently retains a Zacks Rank #3 (Hold).
GM's major rival Ford Motor Co. ( F ) posted an increase of
4.1% in earnings to $1.6 billion and 5.1% in earnings per share to
41 cents in the first quarter of 2013, beating the Zacks Consensus
Estimate by 3 cents. Revenues improved 10.5% to $35.8 billion,
exceeding the Zacks Consensus Estimate of $32.8 billion.
The improvement in revenues and earnings was mainly attributable
to Ford's strong performance in North America and Asia Pacific and
Africa. The company's results were disappointing in South America
due to an unfavorable exchange rate as well as in Europe due to the
Few stocks that are performing well in the industry include
Visteon Corp. ( VC ) and Denso
Corp. ( DNZOY ). They carry a
Zacks Rank #1 (Strong Buy).