Tags: US | Earns | GM

GM Posts $4.3 Billion Loss, Hopes for 2010 Profit

Wednesday, 07 Apr 2010 10:21 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

General Motors Co. says it lost $4.3 billion in the last half of 2009 as it struggled to emerge from bankruptcy protection, repay government loans and cope with a severe downturn in U.S. sales.

However, the automaker says it still sees a chance of being profitable in 2010.

GM's results aren't comparable to prior years. They only measure the period from July 10, when GM emerged from bankruptcy protection after shedding billions in debt, through Dec. 31. GM said it earned $109 million in the period from Jan. 1 to July 9, under old accounting.

The Detroit company reported revenue of $57.5 billion for the period. That compares to $47.1 billion in revenues in the period from Jan. 1-July 9.

GM arrived at the totals using fresh-start accounting, which allows companies to completely revalue their assets after bankruptcy protection. GM says it's the largest company ever to go through the fresh-start process.

The federal government has given GM $52 billion in aid and has owned 61 percent of GM since its emergence from bankruptcy. Most of that will be repaid when GM makes a public stock offering, but the company has pledged to repay $6.7 billion in cash.

GM made a $1 billion payment to the U.S. government in December and another $1 billion payment in March. GM's new Chief Financial Officer Chris Lidell said last month that the company still hopes to repay the entire $6.7 billion before June.

Under new CEO Ed Whitacre, since July the automaker has shed four brands — Pontiac, Saturn, Saab and Hummer — and made a series of management changes and cut thousands of salaried employees.

GM, which remains the largest car company by sales in the U.S., saw a slight gain in U.S. market share in the first three months of this year compared to a year ago. Sales of some of its new crossovers, including the Chevrolet Traverse and Equinox and GMC Acadia and Terrain, have been particularly strong.

GM last reported earnings in November, when it said it lost $1.2 billion in the third quarter. That was before the company completed the fresh-start process. It lost $6 billion in the first three months of 2009 before its stay in Chapter 11. It lost $31 billion in 2008.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Giant Sunspot Has Scientists Scratching Their Heads

Thursday, 30 Oct 2014 06:47 AM

A colossal sunspot - at 80,000 miles wide, the largest seen in about a quarter of a century - is acting peculiarly, prod . . .

Group Says Piece of Metal Found on Island Is From Earhart's Plane

Wednesday, 29 Oct 2014 23:23 PM

Researchers probing the 1937 disappearance of famed American aviator Amelia Earhart's plane said on Wednesday they now b . . .

Retailers' Deal With Rival System Blocks Apple Pay

Wednesday, 29 Oct 2014 14:28 PM

A coalition of retailers is refusing to accept Apple's new mobile wallet because of agreements they have already signed  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved