GM: $4.3 Billion Loss since bankruptcy

[jpd80]

From The detroit News:
General Motors Co. posted a $4.3 billion net loss last year, according to a financial report released this morning that offers the first comprehensive look at the company's finances since it emerged from bankruptcy court in July.

The automaker also posted global revenue of $57.5 billion at the end of December and had generated $1 billion in net cash.

The bulk of GM's $4 billion in fourth-quarter losses were in North America, where GM lost $3.4 billion.

Chris Liddell, GM's vice chairman and CFO, said GM must return to profitability. He said the fourth quarter loss "gives you some sense of the financial hill we intend to climb."

GM had $36.2 billion in cash on hand at the end of last year. GM revalued its physical assets, valuing them at $19 billion -- an $18 billion reduction over what they worth before GM's bankruptcy filing.

The $4.3 billion net loss included a $2.6 billion pre-tax settlement loss related to the United Auto Workers retiree medical plan and a $1.3 billion foreign currency re-measurement loss, GM said today.

The financial report, which was delayed a week, represents a significant milestone for GM and reveals a new balance sheet for the company with new values attached to assets and liabilities.

GM lost $3.4 billion in North America in 6 months since bankruptcy?

Anyone who thought that bankruptcy would magically fix GM illness are in for a rude shock,
the best thing the government and UAW can do is cut their losses and get whatever money
they can out of share float later this year. Whatever happens to GM after that is not their fault.