General Motors Announces First Quarter 2014 Results

Detroit-based auto giant GM reported today its first quarter net income attributable to common stockholders of $0.1 billion, which is dramatically worse than the same period last year. More exactly, nine times worse.
GM HQ 1 photo
Photo: GM
Amusingly, CEO Mary Barra declared: "The performance of our core operations was very strong this quarter, reflecting the positive response of customers to the new vehicles we are bringing to market." Yeah, and pigs fly…

From the revenue point of view, GM truly performed better than in the first quarter of 2013. However, if you take a peek at the other financial figures reported, it's easy to see why GM isn't doing very well.

Take, for example, the diluted earnings per share (EPS) financial indicator. Diluted EPS is one of the most relevant performance metrics used by a given company's shareholders. In GM's case, the diluted EPS plummeted from 58 cents per share in Q1 2013 to just 6 cents in Q1 2014.

Also, first quarter profit is down a staggering 86 percent to $125 million. Even though this is company's worst financial quarter since 2009, shares rose 3.7 percent to $35.66 in premarket trading.

GM also reports that the 2.6 million vehicles with faulty ignition switches have recorded charges of $0.7 billion, while other recalls wasted $0.6 billion of the company's money. The $1.3 billion grand total is said to cover the entire cost of parts for the recalls, including installation at the dealers and loaner cars costs.

Take a look at the table or the PDF attachment below to get the full picture of GM's Q1 2014 financial results:

(in billions except for per share amounts)     Q1 2014      Q1 2013
      $37.4        $36.9
Net income attributable to common stockholders       $0.1        $0.9
Earnings per share (EPS) diluted       $0.06        $0.58
Impact of special items on EPS diluted       $(0.23)        $(0.09)
EBIT-adjusted       $0.5        $1.8
Automotive net cash flow from operating activities       $2.0        $0.5
Adjusted automotive free cash flow       $0.2        $(1.3)
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 Download: GM Q1 2014 Financial Results (PDF)

About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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