L:\secfiles\8-k\1997\delphi\marpress.doc
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) March 12, 1997
----------------
GENERAL MOTORS CORPORATION
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
- ---------------------------- ----------------------- -------------------
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
100 Renaissance Center, Detroit, Michigan 48243-7301
3044 West Grand Boulevard, Detroit, Michigan 48202-3091
- -------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
--------------
- 1 -
ITEM 5. OTHER EVENTS
(a) On March 12, 1997, General Motors Corporation (GM or General
Motors) issued a news release on the subject of separate summary financial
information for its North American Automotive Operations and Delphi Automotive
Systems. The content of the news release was as follows:
GM RELEASES FINANCIAL-PERFORMANCE DATA FOR GM-NAO AND DELPHI BUSINESS SECTORS
DETROIT - General Motors Corp. today released financial information on the
separate financial performance of its North American Operations (GM-NAO) and
Delphi Automotive Systems (Delphi) business sectors - on a quarterly basis for
1994 through 1996, and on an annual basis for 1991 through 1996. GM previously
reported combined results for the two sectors. The corporation's consolidated
earnings for the 1996 fourth quarter and calendar year, including the combined
GM-NAO/Delphi results, were reported on Jan. 28, 1997.
"With the additional financial data we're releasing today, and which will
be provided on a quarterly basis going forward, stockholders and potential
investors will be able to better understand GM-NAO and Delphi, and see the
progress we've made - and expect to continue to make - in strengthening two of
our core business sectors," GM Chairman and Chief Executive Officer John F.
Smith, Jr., said.
"When looking at the results for the last six years," Smith said, "it's
significant that both of these important business sectors were profitable on an
annual basis in each of the last three years."
# # #
GM-NAO AND DELPHI HIGHLIGHTS ATTACHED
- 2 -
General Motors North American Operations
and Delphi Automotive Systems
Income Statement Summary Data
(Unaudited)
Year Ended December 31,
1994(1) 1995(1) 1996(1)
------ ------ ------
($ in Millions)
GM North American Operations (GM-NAO)
Net sales $91,768 $95,936 $93,381
------ ------ ------
Income before income taxes $644 $2,071 $608
US, foreign and other
income taxes
(benefit) (34) 569 (85)
Equity in earnings of
affiliates 28 22 37
Cumulative effect of
accounting changes (7,8) (482) (52) -
------ ------ ------
Net income (5) $224 $1,472 $730
====== ====== ======
Net profit margin 0.2% 1.5% 0.8%
Delphi Automotive Systems (Delphi)
Net sales $26,097 $26,426 $26,002
------ ------ ------
Income before income taxes $961 $1,251 $613
US, foreign and other
income taxes 308 377 134
Equity in earnings of
affiliates 33 42 47
Cumulative effect of
accounting change (7) (223) - -
------ ------ ------
Net income (5) $463 $916 $526
====== ====== ======
Net profit margin 1.8% 3.5% 2.0%
GM-NAO/Delphi Combined (2)
Net sales $98,133 $103,253 $101,002
------ ------- -------
Income before income taxes $1,589 $3,346 $1,206
US, foreign and other
income taxes 268 962 44
Equity in earnings of
affiliates 61 64 84
Cumulative effect of
accounting changes (7,8) (705) (52) -
------ ------ ------
Net income (5) $677 $2,396 $1,246
====== ======= =======
Net profit margin 0.7% 2.3% 1.2%
See notes to income statement summary data.
- 3 -
<PAGE>
General Motors North American Operations
and Delphi Automotive Systems
Income Statement Summary Data
(Unaudited)
Year Ended December 31,
1991(1) 1992(1) 1993(1)
------ ------ ------
($ in Millions)
GM-NAO
Net sales (3) $70,030 $75,447 $80,553
------ ------- -------
Net (loss)(3,5) $(7,620) $(18,891) $(1,717)
====== ======= =======
Net (loss) margin (3) (10.9)% (25.0)% (2.1)%
Delphi
Net sales (3) $21,781 $23,625 $25,090
------ ------- -------
Net income (loss)(3,5) $(462) $(5,621) $ 717
====== ======= =======
Net profit (loss)
margin (3) (2.1)% (23.8)% 2.9%
GM-NAO/Delphi Combined (2)
Net sales (3) $74,992 $80,863 $85,965
------ ------- -------
Net (loss)(3,5) $(8,092) $(24,522) $(1,012)
====== ======= =======
Net (loss) margin (3) (10.8)% (30.3)% (1.2)%
See notes to income statement summary data.
- 4 -
General Motors North American Operations
and Delphi Automotive Systems
Income Statement Summary Data - 1996
(Unaudited)
Q1(1) Q2(1) Q3(1) Q4(1)
------ ------ ------ ------
($ in Millions)
GM-NAO
Net sales $21,683 $26,928 $22,267 $22,503
------ ------ ------ ------
Income (loss) before
income taxes $(517) $1,074 $238 $(187)
US, foreign and
other income taxes
(benefit) (222) 387 (35) (215)
Equity in earnings
(loss)of affiliates 16 18 4 (1)
------ ------ ------ ------
Net income (loss)(6) $(279) $705 $277 $27
====== ====== ====== ======
Net profit (loss)
margin (1.3)% 2.6% 1.2% 0.1%
Delphi
Net sales $ 6,189 $ 7,307 $ 6,370 $ 6,136
------ ------ ------ ------
Income (loss) before
income taxes $122 $523 $191 $(223)
US, foreign and
other income taxes
(benefit) 47 184 (35) (62)
Equity in earnings
of affiliates 4 16 12 15
------ ------ ------ ------
Net income (loss)(6) $79 $355 $238 $(146)
====== ====== ====== ======
Net profit (loss)
margin 1.3% 4.9% 3.7% (2.4)%
GM-NAO/Delphi Combined (4)
Net sales $23,565 $28,949 $24,101 $24,387
------ ------ ------ ------
Income (loss) before
income taxes $(387) $1,581 $430 $(418)
US, foreign and
other income taxes
(benefit) (172) 565 (69) (280)
Equity in earnings
of affiliates 20 34 16 14
------ ------ ------ ------
Net income (loss)(6) $(195) $1,050 $515 $(124)
====== ====== ====== ======
Net profit (loss)
margin (0.8)% 3.6% 2.1% (0.5)%
See notes to income statement summary data.
- 5 -
General Motors North American Operations
and Delphi Automotive Systems
Income Statement Summary Data - 1995
(Unaudited)
Q1(1) Q2(1) Q3(1) Q4(1)
------ ------ ------ ------
($ in Millions)
GM-NAO
Net sales $25,574 $25,300 $20,753 $24,309
------ ------ ------ ------
Income (loss) before
income taxes $1,182 $688 $(227) $428
US, foreign and
other income taxes
(benefit) 452 207 (114) 24
Equity in earnings
(loss) of affiliates 21 (4) (5) 10
Cumulative effect of
accounting change(8) (52) - - -
------ ------ ------ ------
Net income (loss)(6) $699 $477 $(118) $414
====== ====== ====== ======
Net profit (loss)
margin 2.7% 1.9% (0.6)% 1.7%
Delphi
Net sales $7,154 $7,055 $5,734 $6,483
------ ------ ------ ------
Income before
income taxes $423 $566 $40 $222
US, foreign and
other income taxes 117 190 22 48
Equity in earnings
of affiliates 11 8 5 18
------ ------ ------ ------
Net income (6) $317 $384 $23 $192
====== ====== ====== ======
Net profit margin 4.4% 5.4% 0.4% 3.0%
GM-NAO/Delphi Combined (4)
Net sales $27,450 $27,262 $22,322 $26,219
------ ------ ------ ------
Income (loss) before
income taxes $1,589 $1,286 $(185) $656
US, foreign and
other income taxes
(benefit) 563 410 (92) 81
Equity in earnings
of affiliates 32 4 - 28
Cumulative effect of
accounting change(8) (52) - - -
------ ------ ------ ------
Net income (loss)(6) $1,006 $880 $(93) $603
====== ====== ====== ======
Net profit (loss)
margin 3.7% 3.2% (0.4)% 2.3%
See notes to income statement summary data.
- 6 -
General Motors North American Operations
and Delphi Automotive Systems
Income Statement Summary Data - 1994
(Unaudited)
Q1(1) Q2(1) Q3(1) Q4(1)
------ ------ ------ ------
($ in Millions)
GM-NAO
Net sales $23,097 $24,591 $19,071 $25,009
------ ------ ------ ------
Income (loss) before
income taxes $485 $593 $(892) $458
US, foreign and
other income taxes
(benefit) 187 259 (504) 24
Equity in earnings
(loss) of affiliates 16 18 9 (15)
Cumulative effect of
accounting change(7) (482) - - -
------ ------ ------ ------
Net income (loss)(6) $(168) $352 $(379) $419
====== ====== ====== ======
Net profit (loss)
margin (0.7)% 1.4% (2.0)% 1.7%
Delphi
Net sales $6,928 $6,835 $5,479 $6,855
------ ------ ------ ------
Income (loss) before
income taxes $305 $457 $(96) $295
US, foreign and
other income taxes
(benefit) 108 149 (72) 123
Equity in earnings
of affiliates 6 10 13 4
Cumulative effect of
accounting change(7) (223) - - -
------ ------ ------ ------
Net income (loss)(6) $(20) $318 $(11) $176
====== ====== ====== ======
Net profit (loss)
margin (0.3)% 4.7% (0.2)% 2.6%
GM-NAO/Delphi Combined (4)
Net sales $24,490 $26,277 $20,539 $26,827
------ ------ ------ ------
Income (loss) before
income taxes $772 $1,039 $(982) $760
US, foreign and
other income taxes
(benefit) 288 433 (604) 151
Equity in earnings
(loss) of affiliates 22 35 15 (11)
Cumulative effect of
accounting change(7) (705) - - -
------ ------ ------ ------
Net income (loss)(6) $(199) $641 $(363) $598
====== ====== ====== ======
Net profit (loss)
margin (0.8)% 2.4% (1.8)% 2.2%
See notes to income statement summary data.
- 7 -
General Motors North American Operations
and Delphi Automotive Systems
Notes to Income Statement Summary Data
(Unaudited)
(1) These disaggregated financial results have been prepared using a
management approach, which is consistent with the basis and manner in
which management internally disaggregates the Corporation's financial
information for the purposes of assisting in making internal operating
decisions. It is being released to allow interested parties to view the
performance of the sectors in the same manner as management.
This information is not prepared in accordance with generally accepted
accounting principles (GAAP). Certain common expenses are allocated
among sectors less precisely than would be required for standalone
financial information prepared in accordance with GAAP. Additionally,
certain expenses (primarily certain U.S. taxes related to non-U.S.
operations) are included in GM's "Other" sector and not in either
GM-NAO or Delphi. This data represents the historical information used
by management for internal decision making purposes and, accordingly,
other data prepared to represent the way in which the business will
operate in the future, or data prepared on a GAAP basis may be
materially different.
(2) Excludes cross-sector sales and other transactions as
follows:
1994 1995 1996
------ ------ ------
($ in Millions)
Net sales $19,732 $19,109 $18,381
Net income (loss) $(10) $8 $(10)
1991 1992 1993
------ ------ ------
($ in Millions)
Net sales $16,819 $18,209 $19,678
Net (loss) $(10) $(10) $(12)
(3) Net sales, net income (loss), and net profit (loss) margins for 1991,
1992 and 1993 are for periods prior to when the Corporation prepared
sector financial results and are prepared on a less precise basis than
the 1994, 1995 and 1996 financial information. Financial information
for 1991, 1992 and 1993 is presented to give a directional indicator of
the improvement in earnings during the periods.
(4) Excludes cross-sector sales and other transactions as
follows:
Q1 Q2 Q3 Q4
------ ------ ------ ------
($ in Millions)
1996
Net sales $4,307 $5,286 $4,536 $4,252
Net income (loss) $5 $(10) $- $(5)
1995
Net sales $5,278 $5,093 $4,165 $4,573
Net income (loss) $(10) $19 $2 $(3)
1994
Net sales $5,535 $5,149 $4,011 $5,037
Net income (loss) $(11) $(29) $27 $3
- 8 -
General Motors North American Operations
and Delphi Automotive Systems
Notes to Income Statement Summary Data
(Unaudited)
(5) Special Items Analysis
Year Ended December 31,
1994 1995 1996
------ ------ ------
($ in Millions)
GM-NAO
Net income $224 $1,472 $730
Special items
Plant closings reserve
adjustments - - 450
Sale of preferred stock
interest - - 65
Retiree lump sum payments - - (114)
Sale of facilities - - (4)
Cumulative effect of
accounting changes (7,8) (482) (52) -
----- ----- -----
Total special items (482) (52) 397
----- ----- -----
Net income - excluding
special items $706 $1,524 $333
===== ===== =====
Net profit margin -
excluding special items 0.8% 1.6% 0.4%
Delphi
Net income $463 $916 $526
Special items
Retiree lump sum payments - - (49)
Sale of facilities - - (153)
Cumulative effect of
accounting change (7) (223) - -
----- ----- -----
Total special items (223) - (202)
----- ----- -----
Net income - excluding
special items $686 $916 $728
===== ===== =====
Net profit margin -
excluding special items 2.6% 3.5% 2.8%
GM-NAO/Delphi Combined (2)
Net income $677 $2,396 $1,246
Special items
Plant closings reserve
adjustments - - 450
Sale of preferred stock
interest - - 65
Retiree lump sum payments - - (163)
Sale of facilities - - (157)
Cumulative effect of
accounting changes (7,8) (705) (52) -
----- ----- -----
Total special items (705) (52) 195
----- ----- -----
Net income - excluding
special items $1,382 $2,448 $1,051
===== ===== =====
Net profit margin -
excluding special items 1.4% 2.4% 1.0%
- 9 -
General Motors North American Operations
and Delphi Automotive Systems
Notes to Income Statement Summary Data
(Unaudited)
(5) Special Items Analysis (concluded)
Year Ended December 31,
1991(3) 1992(3) 1993(3)
------ ------ ------
($ in Millions)
GM-NAO
Net(loss) $(7,620) $(18,891) $(1,717)
Total special items (1,263) (13,926)* (414)
Pro forma OPEB charge ** 881 - -
----- ----- -----
Adjusted net(loss) -
excluding special items $(7,238) $ (4,965) $(1,303)
===== ===== =====
Adjusted net(loss) margin
- excluding special items (10.3)% (6.6)% (1.6)%
Delphi
Net income (loss) $(462) $(5,621) $717
Total special items 7 (5,752)* 138
Pro forma OPEB charge ** 384 - -
----- ----- -----
Adjusted net income (loss)
- excluding special items $(853) $131 $579
===== ===== =====
Adjusted net profit (loss)
margin - excluding
special items (3.9)% 0.6% 2.3%
GM-NAO/Delphi Combined (2)
Net (loss) $(8,092) $(24,522) $(1,012)
Total special items (1,256) (19,678)* (276)
Pro forma OPEB charge ** 1,265 - -
----- ----- -----
Adjusted net (loss) -
excluding special items $(8,101) $(4,844) $ (736)
===== ===== =====
Adjusted net(loss) margin
- excluding special items (10.8)% (6.0)% (0.9)%
* - The largest component of the 1992 special items was the cumulative
effect of adopting SFAS No. 106, which for GM-NAO/Delphi combined was
approximately $18.9 billion.
** - Estimated charge as though SFAS No. 106 had been in
effect in 1991 is included for consistency purposes.
- 10 -
<PAGE>
General Motors North American Operations
and Delphi Automotive Systems
Notes to Income Statement Summary Data
(Unaudited)
(6) 1996 Special Items Analysis
Q1(1) Q2(1) Q3(1) Q4(1)
------ ------ ------ ------
($ in Millions)
GM-NAO
Net income (loss) $(279) $705 $277 $27
Special items
Plant closings
reserve adjustments - - 253 197
Sale of preferred
stock interest - - - 65
Retiree lump sum
payments - - - (114)
Sale of facilities - - - (4)
------ ------ ------ ------
Total special items - - 253 144
------ ------ ------ ------
Net income (loss) -
excluding special
items $(279) $705 $24 $(117)
====== ====== ====== ======
Delphi
Net income (loss) $79 $355 $238 $(146)
Special items
Retiree lump sum
payments - - - (49)
Sale of facilities - - - (153)
------ ------ ------ ------
Total special items - - - (202)
------ ------ ------ ------
Net income - excluding
special items $79 $355 $238 $56
====== ====== ====== ======
GM-NAO/Delphi Combined(2)
Net income (loss) $(195) $1,050 $515 $(124)
Special items
Plant closings
reserve adjustments - - 253 197
Sale of preferred
stock interest - - - 65
Retiree lump sum
payments - - - (163)
Sale of facilities - - - (157)
------ ------ ------ ------
Total special items - - 253 (58)
------ ------ ------ ------
Net income (loss) -
excluding special
items $(195) $1,050 $262 $(66)
====== ====== ====== ======
- 11 -
<PAGE>
General Motors North American Operations
and Delphi Automotive Systems
Notes to Income Statement Summary Data
(Unaudited)
(6) 1995 Special Items Analysis (continued)
Q1(1) Q2(1) Q3(1) Q4(1)
------ ------ ------ ------
($ in Millions)
GM-NAO
Net income (loss) $699 $477 $(118) $414
Special items
Cumulative effect of
accounting change(8) (52) - - -
------ ------ ------ ------
Total special items (52) - - -
------ ------ ------ ------
Net income (loss) -
excluding special
items $751 $477 $(118) $414
====== ====== ====== ======
Delphi
Net income $317 $384 $23 $192
Total special items - - - -
------ ------ ------ ------
Net income - excluding
special items $317 $384 $23 $192
====== ====== ====== ======
GM-NAO/Delphi Combined(2)
Net income (loss) $1,006 $880 $(93) $603
Special items
Cumulative effect of
accounting change(8) (52) - - -
------ ------ ------ ------
Total special items (52) - - -
------ ------ ------ ------
Net income (loss) -
excluding special
items $1,058 $880 $(93) $603
====== ====== ====== ======
- 12 -
<PAGE>
General Motors North American Operations
and Delphi Automotive Systems
Notes to Income Statement Summary Data
(Unaudited)
(6) 1994 Special Items Analysis (concluded)
Q1(1) Q2(1) Q3(1) Q4(1)
------ ------ ------ ------
($ in Millions)
GM-NAO
Net income (loss) $(168) $352 $(379) $419
Special items
Cumulative effect of
accounting change(7) (482) - - -
------ ------ ------ ------
Total special items (482) - - -
------ ------ ------ ------
Net income (loss) -
excluding special
items $314 $352 $(379) $419
====== ====== ====== ======
Delphi
Net income (loss) $(20) $318 $(11) $176
Special items
Cumulative effect of
accounting change(7) (223) - - -
------ ------ ------ ------
Total special items (223) - - -
------ ------ ------ ------
Net income (loss) -
excluding special
items $203 $318 $(11) $176
====== ====== ====== ======
GM-NAO/Delphi Combined(2)
Net income (loss) $(199) $641 $(363) $598
Special items
Cumulative effect of
accounting change(7) (705) - - -
------ ------ ------ ------
Total special items (705) - - -
------ ------ ------ ------
Net income (loss) -
excluding special
items $506 $641 $(363) $598
====== ====== ====== ======
(7) Effective January 1, 1994, SFAS No. 112, Employers'
Accounting for Postemployment Benefits, was adopted.
(8) Effective January 1, 1995, EITF Issue No. 95-1, Revenue
Recognition on Sales with a Guaranteed Minimum Resale
Value, was adopted.
- 13 -
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS CORPORATION
--------------------------
March 12, 1997
-----------------
By
s/Wallace W. Creek
-------------------------------
(Wallace W. Creek, Comptroller)
- 14 -
