On Monday, Shares of General Motors Company (NYSE:GM), gained 0.27% to $33.24.
On Oct. 1, General Motors Co. CEO Mary Barra and her leadership team outlined the company’s plans to capitalize on the future of personal mobility by owning the customer relationship beyond the vehicle, building upon nearly two decades of connectivity leadership.
GM also said it plans to strengthen its core business through global growth initiatives and an aggressive product launch cadence, while ongoing to focus on driving cost efficiencies. As a result, the company anticipates to improvement its earnings per share and generate noteworthy shareholder value. The company shared its plans with investors during a conference at its Milford Proving Ground.
“The convergence of rapidly improving technology and changing consumer preferences is creating an inflection point for the transportation industry not seen in decades,” said Barra. “Some might find this massive change to be daunting, but we look at it and see the opportunity to be a disruptor. We believe our decades of leadership in vehicle connectivity is fundamental to our quest to redefine the future of personal mobility.”
General Motors Company designs, builds, and sells cars, crossovers, trucks, and automobile parts worldwide. It operates through GM North America, GM Europe, GM International Operations, GM South America, and GM Financial segments.
On other hand, Shares of Mattel, Inc. (NASDAQ:MAT), declined -3.14% to $23.14.
Mattel, is -23.58% down from its peak. The consensus price target is $26.50. The stock was trading at $23.14, up 18.97 percent from 52-week low of $19.45. Its average volume stood at 5.41M. The stock has shown 3.76% volatility for the week, while for the month it was 3.60%.
For the third quarter of 2015, Mattel, Inc. (MAT), stated worldwide net sales down 4% in constant currency, adjusted operating income of $321.6 million and adjusted earnings per share of $0.71.
“Our results for the quarter, not taking into account the noteworthy impact from currency exchange rates, were broadly in line with our expectations at this stage of our turnaround,” said Christopher Sinclair, Mattel Chairman and CEO. “Importantly, we’re very encouraged by the progress we are making on reenergizing the company, building momentum in our core brands, improving retail execution, reducing costs and building scale in key emerging markets. As we continue our turnaround efforts, we remain comfortable with our full-year outlook.”
Financial Overview
For the quarter, worldwide net sales were down 4% in constant currency contrast to last year. In the North American Region, which comprises of the United States, Canada and American Girl, third quarter gross sales reduced by 4% in constant currency, and 5% as stated. In the International Region, gross sales reduced by 2% in constant currency, and reduced 19% as stated. Adjusted gross margin reduced 170 basis points and 140 basis points as stated, primarily from the negative impact from changes in currency exchange rates. Adjusted other selling and administrative expenses reduced $30 million, reflecting continued cost improvement initiatives. Adjusted operating income for the quarter was $321.6 million, contrast to prior year’s adjusted operating income of $434.5 million, reflecting the negative impact from changes in currency exchange rates and lower sales, partially offset by lower other selling and administrative expenses.
The Company’s debt-to-total capital ratio as of September 30, 2015 was 46.8%.
Cash flows used for operating activities were about $222 million, contrast to about $144 million in 2014. Cash flows used for investing activities were about $206 million, a decrease of about $398 million, primarily due to the prior-year acquisition of MEGA Brands. Cash flows used for financing activities and other were about $254 million, contrast to about $29 million in 2014. The change was primarily driven by prior year net proceeds from long-term borrowings, partially offset by prior year share repurchases.
Mattel, Inc. designs, manufactures, and markets a range of toy products worldwide. The company operates in three segments: North America, International, and American Girl. It offers dolls and accessories, vehicles and play sets, and games and puzzles under the Mattel Girls & Boys brands, counting Barbie, Monster High, Disney Classics, Ever After High, Little Mommy, Polly Pocket, Hot Wheels, Matchbox, CARS, Disney Planes, BOOMco, Radica, Toy Story, Max Steel, WWE Wrestling, and Batman.
