General Motors Corporation reported a huge net loss of $6.0 billion this morning, including special items, which translates to -$9.78 per share in the first quarter of 2009. This compares with a reported net loss of $3.3 billion, or -$5.80 per share, in the year-ago quarter.
Excluding special items, the company reported an adjusted net loss of $5.9 billion, or -$9.66 per share, in the first quarter of 2009 compared to an adjusted net loss of $381 million, or -$0.67 per share, in the first quarter of 2008.
The company said a worldwide decline in industry sales of 21% was responsible for the sea of red ink. However GM production declined at roughly twice that rate.
GM’s revenue for the first quarter of 2009 was $22.4 billion, down 47% from $42.4 billion in the year-ago quarter. The drop in revenue was primarily due to GM’s production volume decline of 903,000 units, or approximately 40%, on a global basis year-over-year.
The company said the losses were partially offset by cost cutting. However, GM continues to run through cash at a non-sustainable rate, hemorrhaging $10.2 billion in Q1. alone. Without government financing, GM would be history by now. And its future is by no means assured.
Cash and marketable securities totaled $11.6 billion on March 31, 2009, down from $14.2 billion on December 31, 2008. The change in liquidity from the negative operating cash flow in the first quarter of 2009 was partially offset by U.S. TARP funding. Further details on GM’s current liquidity position and outlook will be disclosed in a Form 10-Q filing with the Securities and Exchange in the coming day. Surely, the news here will not be good.
“Our first quarter results underscore the importance of executing GM’s revised Viability Plan, which goes further and faster to lower our break-even point,” said Fritz Henderson, president and chief executive officer. The failing automaker desperately needs to get out of the headlines as saturation coverage is clearly driving away potential buyers. (more…)