General Motors 2012 Annual Report Download - page 7

General Motors Company 2012 ANNUAL REPORT
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Simply stated, our objective is to make GM the
world’s most valuable automotive company over
time by attracting the industry’s most loyal and
enthusiastic customers.
The phrase “most valuable” means different things
to different groups, which is intentional. To suppliers
and our dealers, it means GM will be their preferred
business partner. To our team, it means we will be their
workplace of choice. And to investors, it means we
will become a blue chip holding by virtue of long-term
profitable growth, which is the theme of this letter.
What is immutable is our focus on the customer,
which requires us to go from “good” today to “great”
in everything we do, including product design, initial
quality, durability and service after the sale.
As you will read, the foundation for greatness is being
built. GM has introduced products that customers
around the world love. We are aggressively addressing
the issues that hold us back. We have maintained
our fortress balance sheet and improved our financial
flexibility. And we have planted the seeds of growth
in every region of the world.
A YEAR OF SIGNIFICANT PROGRESS
From a financial standpoint, 2012 was another solid
year for General Motors. Four of our five business
units were profitable and we earned net income
attributable to common stockholders of $4.9 billion.
Those of you who have been invested in GM know
that we track our operating performance using EBIT-
adjusted, which is earnings before interest expense
and taxes, adjusted for special items. On this basis,
GM earned $7.9 billion.
This is down about $400 million from a year ago, due
primarily to a larger loss in Europe. North America’s
results tracked very close to 2011. Earnings in South
America and International Operations were up year
over year. GM Financial had record income before tax.
Cash generation was solid. Our automotive revenue in
2012 was $150 billion, our dealers delivered 9.3 million
vehicles and we generated $9.6 billion in automotive
net cash provided by operating activities. Adjusted
automotive free cash flow was up meaningfully from
2011, reaching $4.3 billion.
We ended 2012 with total liquidity of $37.2 billion,
including $26.1 billion of cash and marketable securities.
DRAFT
The Opel Mokka entered the growing European market
for sub-compact SUVs in 2012. And if the enthusiastic
customer response is any indication, the vehicle’s new
technologies and bold design are already setting a new
standard in its segment.