Write-downs lead to GM loss of $4.3 billion

Write-downs lead to GM loss of $4.3 billion: "

Filed under: GM, Earnings/Financials

General Motors has just announced it has completed fresh-start accounting as part of its quest to return to public ownership, and the numbers don't exactly look good. GM says that it will announce a $4.3 billion loss for the fourth-quarter of 2009.



Despite relatively strong sales last year, the company had to pay out two large lumps of cash. First, $2.6 billion went to a UAW retiree medical plan. Another $1.6 billion went out the door thanks to 'foreign currency re-measurement loss.' Despite the daunting figures, GM still says it's confident the company can get back on its feet and start operating at a profit by the end of this year. Given the fact that the company is still aiming to return the large majority of its US Treasury and Export Development Canada loans, getting The General back on its feet may be easier said than done. Official press release after the jump.



[Source: General Motors]

Continue reading Write-downs lead to GM loss of $4.3 billion

Write-downs lead to GM loss of $4.3 billion originally appeared on Autoblog on Wed, 07 Apr 2010 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments"