GM posts 4.3 billion-dollar net loss for 2009
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US automaker General Motors posted on Wednesday a $4.3 billion net loss from the time of its emergence from bankruptcy in July through the end of 2009. The vice-chairman is hopeful of a return to profitability in 2010.
AFP - General Motors posted a post-bankruptcy 2009 net loss of 4.3 billion dollars Wednesday but said it hoped to achieve profitability in 2010.
The new GM, which emerged from bankruptcy protection on July 10, achieved global revenues of 57.5 billion dollars and ended the year with net cash of one billion dollars.
"As the results for 2009 show, there is still significant work to be done," Chris Liddell, GM vice chairman and chief financial officer said in a statement.
"However, I continue to believe we have a chance of achieving profitability in 2010."
The net loss includes the pre-tax impact of a 2.6-billion-dollar settlement loss related to the United Auto Workers union retiree medical plan and a 1.3-billion-dollar foreign currency re-measurement loss.
"We are building the foundation that will allow us to return to public ownership," Liddell said.
GM has completed fresh-start accounting -- which includes determining the fair value of assets and liabilities -- and will file its third-quarter and 2009 results with the Securities and Exchange Commission later Wednesday.
This is an "important step" in the process of preparing for an initial public stock offering, Liddell said.
"Going public will enable the company to invest in designing, building and selling the world's best vehicles, attract the best people and access the capital markets," the automaker said.
"One of the most important measures in establishing the foundation for going public is the company's ability to return to sustainable profitability."