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General Motors (GM) Mary Teresa Barra on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Call

April 21, 2016 10:00 am ET


Randy C. Arickx - Executive Director-Investor Relations

Mary Teresa Barra - Chairman & Chief Executive Officer

Charles K. Stevens - Chief Financial Officer & Executive Vice President


John J. Murphy - Bank of America Merrill Lynch

Itay Michaeli - Citigroup Global Markets, Inc. (Broker)

Joseph R. Spak - RBC Capital Markets LLC

Patrick Archambault - Goldman Sachs & Co.

Rod A. Lache - Deutsche Bank Securities, Inc.

Brian A. Johnson - Barclays Capital, Inc.

Neel N. Mehta - Morgan Stanley & Co. LLC

Colin Michael Langan - UBS Securities LLC

Ryan J. Brinkman - JPMorgan Securities LLC


Ladies and gentlemen, thank you for standing by and welcome to the General Motors Company First Quarter Earnings Conference Call. During the opening remarks, all participants will be in a listen-only mode. After the opening remarks, we will conduct a question-and-answer session. As a reminder, today's conference is being recorded, Thursday, April 21, 2016.

I would now like to turn the conference over to Randy Arickx, Executive Director of Corporate Communications and Investor Relations. Please go ahead, sir.

Randy C. Arickx - Executive Director-Investor Relations

Thanks, operator. Good morning and thank you for joining us as we review GM's financial results for the first quarter of 2016. Our press release was issued this morning and the conference call materials are available on the GM Investor Relations website. We are also broadcasting this call via webcast on the Internet. Included in the chart set materials published this morning, we've included the key takeaways from each chart in the notes pages in order to provide color on the results.

This morning, Mary Barra, General Motors' Chief Executive Officer and Chairman, will provide some brief opening remarks; followed by Chuck Stevens, GM's Executive VP and CFO. And then we'll open the line for questions from the analyst community.

Before we begin, I would like to direct your attention to the legend regarding forward-looking statements on the first page of the chart set. The content of our call will be governed by this language. In the room today, we also have Tom Timko, Vice President, Controller and Chief Accounting Officer; and Dhivya Suryadevara, Vice President, Finance and Treasurer, to assist in answering your questions.

Now, I'll turn the call over to Mary Barra.

Mary Teresa Barra - Chairman & Chief Executive Officer

Thanks, Randy, and thanks, everyone for joining the call. I'm extremely pleased to report that GM delivered a very strong performance in this quarter. So let's take a look at the numbers. As the highlights and year-over-year improvements include, first, revenue of $37.3 billion, up $1.6 billion. Q1 record, EBIT adjusted of $2.8 billion, which is up $0.6 billion, Q1 record EBIT-adjusted margin of 7.1%, up 1.3 percentage points, and Q1 record earnings per share adjusted of $1.26, up 47%.

Our net income was $2 billion; this is also up a $1 billion. And in addition, our record 28.5% ROIC on a trailing four-quarter basis demonstrates the positive results of our disciplined capital allocation framework.

If we look we've returned $0.9 billion to shareholders as of March 31, and this really underscores our commitment to enhancing shareholder value over time.

I think it's also important to take note that in Q1, we saw improved performance in all of our segments, led by North America, continued strength in China and breakeven results in Europe. We've had positive developments for Chevrolet and Cadillac, which are our two global brands.

To start with, in the United States, Chevrolet retail share was up a full point year-over-year to about 11%. Malibu's best Q1 retail sales since 1980 in the U.S. and in March, 85% of Malibu sales were the all-new models. In addition, we are launching the Cruze and very excited about that reception in the marketplace.