GM Reports $9.6 Billion Net Loss For 4Q; Liquidity At $14 Billion
26 Februar 2009 - 1:48PM
Dow Jones News
General Motors Corp. (GM) on Thursday reported a $9.6 billion
fourth-quarter loss and liquidity dipped to $14 billion at year-end
as sinking sales outweighed the positive impact of U.S. government
aid.
GM's revenue fell as the worsening economic malaise drove most
of GM's four regions into the red.
The company burned through $6.2 billion in cash in the quarter,
less than the $6.9 billion in the three months to Sept. 30. The
year-end cash position compares with $16.2 billion at the end of
the prior quarter.
The results include $4 billion of GM's $13.4 billion federal
loan.
The loss, which compares with a $1.5 billion deficit a year
earlier, was widely expected after GM last week said it could run
out of money as soon as March without more cash from the
government.
The auto maker barely escaped a bankruptcy in 2008 after the
government promised emergency loans. GM said it needs up to $16.4
billion more to survive a downturn that has U.S. auto sales
tracking at lows unseen since the 1980s.
GM shares were down nearly 24% at $1.95 in recent pre-market
trading as the latest results, excluding charges, came in well
short of Wall Street expectations. GM's adjusted loss was $5.9
billion, compared with a $46 million deficit a year earlier.
GM has lost more than $70 billion since 2005 when Chief
Executive Officer Rick Wagoner began the race to cut costs, slim
down operations and overhaul operations in North America.
The company has relied heavily in emerging markets, especially
Latin America, Eastern Europe and Asia, to offset losses at home.
But as the economic troubles that began with the mortgage meltdown
and banking crisis in the U.S. spread around the globe, GM's is
facing losses most everywhere it operates.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com