DETROIT, Nov. 29,
2023 /PRNewswire/ -- General Motors Co. (NYSE:
GM) announced today it is reinstating its full-year 2023 earnings
guidance. In addition, the company announced a $10 billion accelerated share repurchase (ASR)
program and its intention to increase its common stock dividend by
33% beginning with the January 2024
declaration.
"GM will deliver very strong profits in 2023 thanks to an
exceptional portfolio of vehicles that customers love and our
operating discipline," said GM Chair and CEO Mary Barra.
"We are finalizing a 2024 budget that will fully offset the
incremental costs of our new labor agreements and the long-term
plan we are executing includes reducing the capital intensity of
the business, developing products even more efficiently, and
further reducing our fixed and variable costs," she
added. "With this clear path forward, and our strong balance
sheet, we will return significant capital to shareholders."
2023 guidance
During 2023, GM twice raised its full-year earnings guidance
before withdrawing it in the third quarter due to labor
disruptions. GM's reinstated guidance includes an estimated
$1.1 billion EBIT-adjusted
impact from the UAW strike, primarily from lost production.
Details include:
- Net income attributable to stockholders of $9.1 billion-$9.7
billion, compared to the previous outlook of $9.3 billion-$10.7
billion
- EBIT-adjusted of $11.7 billion-$12.7 billion, compared to the previous
outlook of $12.0 billion-$14.0 billion
- EPS-diluted in the $6.52-$7.02 range,
including the estimated impact of the ASR, compared to the previous
outlook of $6.54-$7.54
- EPS-diluted-adjusted in the $7.20-$7.70 range
including the ASR, compared to the previous outlook of $7.15-$8.15
- Net automotive cash provided by operating activities
of $19.5 billion-$21.0 billion, compared to the previous
outlook of $17.4 billion-$20.4 billion
- Adjusted automotive free cash flow
of $10.5 billion-$11.5 billion, compared to the previous
outlook of $7.0 billion-$9.0 billion
GM now anticipates full-year 2023 capital spending to be
$11.0 billion-$11.5 billion, which is at the low end of
its prior guidance range of $11.0 billion-$12.0 billion, driven by the previously
announced retiming of certain product programs and more
capital-efficient investment.
Accelerated share repurchase program
In connection with GM's ASR program, GM will advance an
aggregate of $10.0 billion to
the executing banks and will immediately receive and retire
$6.8 billion worth of GM's common
stock. GM had approximately 1.37 billion shares of common stock
outstanding prior to the ASR.
The total number of shares ultimately repurchased under the ASR
program will be determined upon final settlement and will be based
on the average of the daily volume-weighted average prices of GM's
common stock during the term of the ASR program. The ASR program is
expected to conclude in the fourth quarter of 2024. The ASR program
will be executed by Bank of America, N.A., Goldman Sachs & Co.
LLC, Barclays Bank PLC and Citibank, N.A.
Outside of the ASR program, GM will have $1.4 billion
of capacity remaining under its share repurchase authorization for
additional, opportunistic share repurchases.
GM has also canceled the $6.0
billion revolving credit facility it entered in October and
plans to enter into a new 364-day $3.0
billion committed credit facility with the banks executing
the ASR acting as lenders.
GM also expects to increase its common stock dividend by
3 cents per quarter to 12 cents beginning in 2024.
General Motors (NYSE:GM) is a global company focused
on advancing an all-electric future that is inclusive and
accessible to all. At the heart of this strategy is the Ultium
battery platform, which will power everything from mass-market to
high-performance vehicles. General Motors, its subsidiaries and its
joint venture entities sell vehicles under
the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands.
More information on the company and its subsidiaries,
including OnStar, a global leader in vehicle safety and
security services, can be found
at https://www.gm.com.
Cautionary Note on Forward-Looking
Statements: This press release and related
comments by management, may include "forward-looking statements"
within the meaning of the U.S. federal securities laws.
Future declarations of quarterly dividends and the
establishment of future record and payment dates are at the
discretion of our Board of Directors and will be based on a number
of factors, including our future financial performance and other
investment priorities. Forward-looking statements are any
statements other than statements of historical fact.
Forward-looking statements represent our current judgment about
possible future events and are often identified by words like
"aim," "anticipate," "appears," "approximately," "believe,"
"continue," "could," "designed," "effect," "estimate," "evaluate,"
"expect," "forecast," "goal," "initiative," "intend," "may,"
"objective," "outlook," "plan," "potential," "priorities,"
"project," "pursue," "seek," "should," "target," "when," "will,"
"would," or the negative of any of those words or similar
expressions. In making these statements, we rely on assumptions and
analysis based on our experience and perception of historical
trends, current conditions and expected future developments as well
as other factors we consider appropriate under the circumstances.
We believe these judgments are reasonable, but these statements are
not guarantees of any future events or financial results, and our
actual results may differ materially due to a variety of important
factors, many of which are beyond our control. These factors, which
may be revised or supplemented in subsequent reports we file with
the SEC, include, among others, the following: (1) our ability to
deliver new products, services, technologies and customer
experiences; (2) our ability to timely fund and introduce new and
improved vehicle models; (3) our ability to profitably deliver a
broad portfolio of electric vehicles (EVs); (4) the success of our
current line of internal combustion engine vehicles; (5) our highly
competitive industry; (6) the unique technological, operational,
regulatory and competitive risks related to the timing and
commercialization of autonomous vehicles (AVs), including the
various regulatory approvals and permits required for operating
driverless AVs in multiple markets; (7) risks associated with
climate change; (8) global automobile market sales volume; (9)
inflationary pressures, persistently high prices, uncertain
availability of raw materials and commodities, and instability in
logistics and related costs; (10) our business in China, which is subject to unique operational,
competitive, regulatory and economic risks; (11) the success of our
ongoing strategic business relationships and of our joint ventures;
(12) the international scale and footprint of our operations, which
exposes us to a variety of unique political, economic, competitive
and regulatory risks; (13) any significant disruption at any of our
manufacturing facilities; (14) the ability of our suppliers to
deliver parts, systems and components without disruption and at
such times to allow us to meet production schedules; (15)
pandemics, epidemics, disease outbreaks and other public health
crises; (16) the possibility that competitors may independently
develop products and services similar to ours, or that our
intellectual property rights are not sufficient to prevent
competitors from developing or selling those products or services;
(17) our ability to manage risks related to security breaches and
other disruptions to our information technology systems and
networked products; (18) our ability to comply with increasingly
complex, restrictive and punitive regulations relating to our
enterprise data practices; (19) our ability to comply with
extensive laws, regulations and policies applicable to our
operations and products, including those relating to fuel economy,
emissions and AVs; (20) costs and risks associated with litigation
and government investigations; (21) the costs and effect on our
reputation of product safety recalls and alleged
defects in products and services; (22) any additional tax expense
or exposure or failure to fully realize available tax incentives;
(23) our continued ability to develop captive financing capability
through General Motors Financial Company, Inc.; and (24) any
significant increase in our pension funding requirements. A further
list and description of these risks, uncertainties and other
factors can be found in our most recent Annual Report on Form 10-K
and our subsequent filings with the SEC. We caution readers not to
place undue reliance on forward-looking statements. Forward-looking
statements speak only as of the date they are made, and we
undertake no obligation to update publicly or otherwise revise any
forward-looking statements, whether as a result of new information,
future events or other factors, except where we are expressly
required to do so by law.
Guidance Reconciliations
The following table reconciles expected Net income attributable
to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars
in billions):
|
Year Ending
December 31, 2023
|
Net income attributable
to stockholders
|
$
9.1-9.7
|
Income tax
expense
|
1.4-1.8
|
Automotive interest
income, net
|
(0.1)
|
Adjustments(a)
|
1.3
|
EBIT-adjusted
|
$
11.7-12.7
|
The following table reconciles expected EPS-diluted under U.S.
GAAP to expected EPS-diluted-adjusted:
|
Year Ending
December 31, 2023
|
Diluted earnings per
common share
|
$
6.52-7.02
|
Adjustments(a)
|
0.68
|
EPS-diluted-adjusted
|
$
7.20-7.70
|
The following table reconciles expected automotive net cash
provided by operating activities under U.S. GAAP to expected
adjusted automotive free cash flow (dollars in billions):
|
Year Ending
December 31, 2023
|
Net automotive cash
provided by operating activities
|
$
19.5-21.0
|
Less: Capital
expenditures
|
10.3-10.8
|
Adjustments(a)
|
1.3
|
Adjusted automotive
free cash flow
|
$
10.5-11.5
|
__________
(a)
|
Adjustments as of
September 30th, 2023. Includes adjustments related to
our Buick dealer strategy, voluntary separation program, and
GM Korea wage litigation. See our Quarterly Report on Form 10-Q for
the quarter ended September 30, 2023 for full details. We do not
consider the potential future impact of adjustments on our expected
financial results.
|
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SOURCE General Motors Co.