GM posts $4.3bn loss for H2 2009, says will become profitable in ‘10
08 Apr 2010
General Motors (GM), the largest automaker in the US, has posted a $4.3-billion loss for the second half of 2009. It emerged from bankruptcy in July 2009. (See: General Motors emerges from bankruptcy)
Detroit, Michigan-based General Motors, which now has the US government as its largest shareholder ever since $50 billion of taxpayer money was pumped in to prevent it from going bust last year, however said it could turn a profit this year.
''As the results for 2009 show there is still significant work to be done. However, I continue to believe we have a chance of achieving profitability in 2010,'' said Chris Liddell, GM vice chairman and CFO.
The $4.3 billion net loss includes pre-tax impact of a $2.6 billion settlement loss related to the union retiree medical plan and a $1.3 billion foreign currency re-measurement loss.
Once America's most admired company, GM said it generated $1 billion in cash on operations in the periods 10 July to 31 December on overall revenues of $57.5 billion.
In a statement the carmaker said, ''The new company, which was formed on July 10, 2009 through the acquisition of substantially all the assets and certain liabilities of the formerly General Motors Corporation, had to complete the process of adopting fresh-start accounting to record the acquisition and establishment of the new GM as well as determine the fair value of assets and liabilities and implement new accounting policies.''
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