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) October 6, 1998
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GENERAL MOTORS CORPORATION
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(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
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(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
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
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ITEM 5. OTHER EVENTS
General Motors Corporation (GM or General Motors) today released financial
information on the separate financial performance of its GM Europe (GME), GM
Latin American/Africa/Mid-East (GMLAAM), and GM Asia/Pacific (GMAP) businesses
which were formerly included in General Motors International Operations (GMIO)
- -- on a quarterly basis for 1996 through the 2nd Quarter of 1998. On October 6,
1998, GM filed an 8-K regarding the formation of the new GM Automotive
Operations sector which includes GM North America (GMNA), GME, GMLAAM, and GMAP.
The following financial information has 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 purpose
of assisting in making internal operating decisions. It is being released to
allow interested parties to view the performance of the GME, GMLAAM, and GMAP
businesses 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. This data represents historical information used by
management for internal decision making purposes and, accordingly, other data
prepared to represent the way in which the business may operate in the future,
or data prepared on a GAAP basis may be materially different.
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General Motors Corporation
Income Statement Summary Data
(Unaudited)
1998 - Q1 GME GMLAAM GMAP
- --------- --- ------ ----
Revenues $5,397 $2,025 $728
Income (loss) before income taxes 203 17 (7)
US, foreign and other income
taxes (benefit) 91 (19) 0
Equity in (losses) earnings
of affiliates (13) 19 14
Minority interest 0 (1) 0
-- -- -
Net income $99 $54 $7
== == =
Net profit margin 1.8% 2.7% 1.0%
1998 - Q2 (1)
- -------------
Revenues $6,227 $2,193 $756
Income before income taxes 244 16 5
US, foreign and other income
taxes (benefit) 129 (10) 4
Equity in earnings (losses)
of affiliates 1 29 (36)
Minority interest 8 (7) 0
--- -- --
Net income (loss) $124 $48 $(35)
=== == ==
Net profit (loss) margin 2.0% 2.2% (4.6%)
1997 - Q1 (2)
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Revenues $5,697 $1,886 $700
Income before income taxes 351 114 8
US, foreign and other income taxes 148 14 2
Equity in (losses) earnings
of affiliates (55) 29 31
Minority interest 1 0 2
--- --- --
Net income $149 $129 $39
=== === ==
Net profit margin 2.6% 6.8% 5.6%
See footnotes on page 7 for special items.
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General Motors Corporation
Income Statement Summary Data
(Unaudited)
1997 - Q2 (3) GME GMLAAM GMAP
- ------------- --- ------ ----
Revenues $6,620 $2,329 $762
Income before income taxes 513 200 14
US, foreign and other income
taxes (benefit) 186 48 (1)
Equity in (losses) earnings
of affiliates (17) 27 (23)
Minority interest 2 2 3
--- --- -
Net income (loss) $312 $181 $(5)
=== === =
Net profit (loss) margin 4.7% 7.8% (0.7%)
1997 - Q3
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Revenues $5,686 $2,273 $682
Income (loss) before income taxes 87 154 (73)
US, foreign and other income
taxes (benefit) 48 14 (15)
Equity in (losses) earnings
of affiliates (70) 25 43
Minority interest 10 0 8
-- --- -
Net (loss) income $(21) $165 $(7)
== === =
Net (loss) profit margin (0.4%) 7.3% (1.0%)
1997 - Q4 (4)
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Revenues $6,103 $2,085 $836
(Loss) income before income taxes (695) 68 (180)
US, foreign and other income
taxes (benefit) (261) (33) (14)
Equity in (losses) earnings
of affiliates (29) 92 (40)
Minority interest 6 (1) 10
--- --- ---
Net (loss) income $(457) $192 $(196)
=== === ===
Net(loss) profit margin (7.5%) 9.2% (23.4%)
See footnotes on page 7 for special items.
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General Motors Corporation
Income Statement Summary Data
(Unaudited)
1997 - Calendar Year GME GMLAAM GMAP
- -------------------- --- ------ ----
Revenues $24,106 $8,573 $2,980
Income (loss) before income taxes 256 536 (231)
US, foreign and other income
taxes (benefit) 121 43 (28)
Equity in (losses) earnings
of affiliates (171) 173 11
Minority interest 19 1 23
-- --- ---
Net (loss) income $(17) $667 $(169)
== === ===
Net (loss) profit margin (0.1%) 7.8% (5.7%)
1996 - Q1
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Revenues $6,728 $1,497 $772
Income before income taxes 433 132 15
US, foreign and other income taxes 118 34 18
Equity in (losses) earnings
of affiliates (24) 24 25
Minority interest (6) 0 3
--- --- --
Net income $285 $122 $25
=== === ==
Net profit margin 4.2% 8.1% 3.2%
1996 - Q2
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Revenues $6,645 $1,627 $829
Income before income taxes 497 85 47
US, foreign and other income taxes 146 38 25
Equity in (losses) earnings
of affiliates (31) 17 21
Minority interest (1) (4) 2
--- -- --
Net income $319 $60 $45
=== == ==
Net profit margin 4.8% 3.7% 5.4%
See footnotes on page 7 for special items.
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General Motors Corporation
Income Statement Summary Data
(Unaudited)
1996 - Q3 GME GMLAAM GMAP
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Revenues $5,744 $1,825 $691
Income before income taxes 6 203 59
US, foreign and other income
taxes (benefit) (95) 56 4
Equity in (losses) earnings
of affiliates (25) 21 27
Minority interest (1) (3) 1
-- --- --
Net income $75 $165 $83
== === ==
Net profit margin 1.3% 9.0% 12.0%
1996 - Q4
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Revenues $6,411 $1,773 $709
Income (loss) before income taxes 117 247 (55)
US, foreign and other income
taxes (benefit) (1) (22) (14)
Equity in (losses) earnings of
affiliates (17) 17 (3)
Minority interest (2) 9 3
-- --- --
Net income (loss) $99 $295 $(41)
== === ==
Net profit (loss) margin 1.5% 16.6% (5.8%)
1996 -Calendar Year
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Revenues $25,528 $6,722 $3,001
Income before income taxes 1,053 667 66
US, foreign and other income taxes 168 106 33
Equity in (losses) earnings
of affiliates (97) 79 70
Minority interest (10) 2 9
--- -- ---
Net income $778 $642 $112
=== === ===
Net profit margin 3.0% 9.6% 3.7%
See footnotes on page 7 for special items.
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General Motors Corporation
Income Statement Summary Data
(Unaudited)
FN - Special Items
(1) The second quarter 1998 results for GME included a pre-tax
charge of $74 million ($44 million after-tax), related to work schedule
modifications at Opel Belgium.
(2) The first-quarter 1997 results for GME included a pre-tax gain of $88
million ($55 million after taxes), that resulted from an agreement with
Volkswagen A.G. (VW) settling a civil lawsuit which GM brought against VW.
(3) Second quarter 1997 results for GME included a pre-tax gain of $128
million ($103 million after taxes), related to the sale of GM Europe's
equity interest in Avis Europe.
(4) During December 1997, GM substantially completed studies concerning the
long-term competitiveness of all facets of its businesses
(Competit- iveness Studies). These studies were performed in conjunction
with GM's current business planning cycle. Based on the results of these
Competitiveness Studies, in the fourth quarter of 1997, GME recorded
pre-tax charges against income totaling $848 million ($488 million
after-tax )and GMAP recorded pre-tax charges against income totaling
$174 million ($170 million after-tax).
* * *
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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
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(Registrant)
Date October 30, 1998
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By
s/Peter R. Bible
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(Peter R. Bible,
Chief Accounting Officer)
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