GM invested $500 million in Lyft earlier this year to help Lyft expand its ride-sharing service. GM holds a seat on Lyft’s board of directors. The goal is joint development of a network of on-demand autonomous vehicles.
General Motors Co. (NYSE: GM) posted Q1 net income to common stockholders of $2.0 billion or $1.24 per diluted share, compared to $0.9 billion or $0.56 per diluted share a year ago. Earnings per share diluted-adjusted for special items was a first-quarter record at $1.26, up 47 percent compared to the first quarter of 2015. The company set first-quarter records for earnings and margin, with earnings before interest and tax (EBIT) adjusted of $2.7 billion and an EBIT-adjusted margin of 7.% based on global sales of 1.411 million vehicles – 874,000 in North America.
However, with the exception of GM North America with its Q1 record EBIT-adjusted of $2.3 billion, including $0.2 billion for restructuring costs, GM’s other operations were weak performers returning little to shareholders, if not hurting their investment in the global conglomerate.
- GM Europe in a recovering European market was breakeven. GM International Operations, which includes China the world’s largest auto market, reported EBIT-adjusted of $0.4 billion compared with $0.4 billion in Q1 of 2015.
- GM South America reported a loss of EBIT-adjusted of $(0.1) billion compared with $(0.2) billion in the first quarter of 2015.
- GM Financial posted earnings before tax of $0.2 billion, “about equal to a year ago.”
Cash Flow and Liquidity
Worrisome was that during Q1, GM’s automotive cash flow from operating activities was -$0.7 billion. Adjusted automotive free cash flow was -$1.5 billion. GM ended the quarter with total automotive liquidity of $30.6 billion, and automotive cash and marketable securities of $18.5 billion.
