GM Reports Earnings

By Staff Writer July 30, 2020

General Motors Co. reported solid second-quarter earnings, despite significant impacts to production and wholesales as a result of the COVID-19 pandemic. The results reflect actions GM has taken over the past few years to be more resilient.

Second-quarter 2020 results:

• EPS-diluted of $(0.56), and EPS-diluted-adjusted of $(0.50)

  • EPS-diluted-adjusted includes a $0.08 gain from PSA revaluations
  • Income of $(0.8) billion, and EBIT-adjusted of $(0.5) billion
  • Revenue of $16.8 billion
  • Automotive liquidity of $30.6 billion
  • Automotive operating cash flow of $(8.0) billion, and adjusted automotive free cash flow of $(9.0) billion
  • GM North America EBIT-adjusted near breakeven at $(0.1) billion
  • GM Financial EBT-adjusted of $0.2 billion

 

Second-quarter adjusted auto free cash flow was a loss of $9 billion, down $11.6 billion year over year. The difference was largely due to the financial impact of the pandemic and managed working capital unwind, partially offset by lower capital expenditures. The quarter benefitted from a $500-million dividend from GM’s China operations and a $400-million dividend from GM Financial. Total automotive liquidity at the end of the quarter remained strong at $30.6 billion.

“Clearly, the second quarter was a challenge, but we achieved near breakeven EBIT-adj. in North America, despite losing eight of 13 weeks of production,” CFO Dhivya Suryadevara, said. “These results illustrate the resiliency and earnings power of the business as we make the critical investments necessary for our future.”

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Last modified on Thursday, 30 July 2020 15:22

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