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GM Reports Record Net Income and Record EBIT 03 February 2016

Plans to improve results in 2016, driven by a significant vehicle launch cadence

General Motors Co. announced record 2015 calendar-year net income attributable to common stockholders of US$9.7 billion, or US$5.91 per diluted share, up from US$2.8 billion, or US$1.65 per diluted share in 2014. Earnings per share (EPS) adjusted for special items was US$5.02, up 65 percent compared to US$3.05 in 2014. Full-year earnings before interest and tax (EBIT) adjusted rose to a record US$10.8 billion, up from US$6.5 billion in 2014. EBIT adjusted margin for the year also increased, to a record 7.1 percent, compared to 4.2 percent in 2014.

“It was a strong year on many fronts, capped with record sales and earnings, and a substantial return of capital to our shareholders,” said Chairman and CEO Mary Barra. “We continue to strengthen our core business, which is laying the foundation for the company to lead in the transformation of personal mobility. We believe the opportunities this will create in connectivity, autonomous, car-sharing and electrification will set the stage for driving value for our owners for years to come.”

Special items during the calendar year impacted full-year net income to common stockholders favourably, US$1.5 billion, or US$0.89 per share, compared to an unfavourable US$(2.4) billion impact in 2014, or US$(1.40) per share. Among these special items were a net gain from the reversal of certain valuation allowances on deferred tax assets, and charges for litigation matters related to the ignition switch recall and a Venezuelan bolivar currency devaluation.

Total net revenue for the year was US$152.4 billion, compared to US$155.9 billion in 2014. The change in net revenue is due primarily to a negative net foreign currency exchange impact of US$9.3 billion. Holding exchange rates constant, net revenue in 2015 was US$5.8 billion higher than 2014.

Based on its strong operating performance in 2015 and consistent with the outlook provided in January, the company reaffirms its expectation that its EPS-adjusted will be between US$5.25 and US$5.75 in 2016.

Fourth Quarter Results

GM’s fourth quarter 2015 net income attributable to common stockholders was US$6.3 billion, or US$3.92 per diluted share, up from US$1.1 billion, or US$0.66 per diluted share during the fourth quarter of 2014. Earnings per share adjusted for special items during the fourth quarter was US$1.39, up 17 percent compared to US$1.19 per share for the fourth quarter of 2014.

EBIT-adjusted was a record US$2.8 billion and EBIT-adjusted margin was 7.0 percent in the fourth quarter of 2015, compared to EBIT-adjusted of US$2.4 billion and EBIT-adjusted margin of 6.1 percent in the fourth quarter of 2014.

“The fourth quarter closed another very strong year of operating performance,” said Chuck Stevens, executive vice president and CFO. “We plan to improve our results in 2016, driven by a significant vehicle launch cadence, continued emphasis on growing our adjacent businesses and an unrelenting focus on driving efficiencies into our core operations.”

Special items during the fourth quarter of 2015 impacted net income to common stockholders favourably, US$4.0 billion, or US$2.53 per share, compared to an unfavourable US$(0.9) billion impact in 2014, or US$(0.53) per share. These special items included a US$3.9 billion net non-cash benefit related to the release of the company’s valuation allowances on certain GM Europe deferred tax assets.

Total net revenue in the fourth quarter of 2015 was US$39.6 billion, approximately equal to the fourth quarter of 2014. Holding exchange rates constant, net revenue during the fourth quarter was US$2.4 billion higher than the fourth quarter of 2014.

Segment Results

GM North America (GMNA) reported EBIT-adjusted of US$2.8 billion in the fourth quarter of 2015 compared to US$2.2 billion in 2014. Full-year EBIT-adjusted of US$11.0 billion and EBIT-adjusted margin of 10.3 percent were both records, and compared to EBIT-adjusted of US$6.6 billion and EBIT-adjusted margin of 6.5 percent in 2014. Based on GMNA’s 2015 financial performance, the company will pay profit sharing of up to US$11,000 to approximately 49,600 eligible GM U.S. hourly employees.

GM Europe (GME) reported EBIT-adjusted of US$(0.3) billion in the fourth quarter of 2015, compared to US$(0.4) billion in 2014. Full-year EBIT-adjusted was US$(0.8) billion in 2015, compared to US$(1.4) billion in 2014.

GM International Operations (GMIO) reported EBIT-adjusted of US$0.4 billion in the fourth quarter of 2015 compared to US$0.4 billion in 2014. Full-year EBIT-adjusted was US$1.4 billion in 2015 compared to US$1.2 billion in 2014. Results included China equity income of US$0.6 billion in the fourth quarter and US$2.1 billion for the full year.

GM South America (GMSA) reported approximately break-even results in the fourth quarter of 2015, compared to EBIT-adjusted of US$0.1 billion in 2014. Full-year EBIT-adjusted was US$(0.6) billion in 2015 compared to EBIT-adjusted of US$(0.2) billion in 2014.

GM Financial reported earnings before taxes (EBT) of US$0.2 billion in the fourth quarter of 2015, compared to US$0.1 billion in 2014. Full-year EBT was US$0.8 billion, compared to US$0.8 billion in 2014.