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General Motors Company Posts $1.2 Billion Loss

It will pay back first $1.2 billion to taxpayers next month.

by on Nov.16, 2009

The full costs of health care have not yet been accounted for.

The full costs of health care have not yet been accounted for, or the value of the stock.

General Motors Company (GM) released today preliminary results for its first 83 days of operation, providing an initial look at its still tenuous financial health.

GM’s earnings before taxes for the July 10-Sept. 30 period resulted in a loss of $1.0 billion since it began operations as a reorganized company on July 10.

GM recorded special items for the same period of $505 million, attributed primarily to dealer restructuring, attrition-related charges and Delphi.

For the July 10-Sept. 30 period GM posted a loss after taxes of $1.2 billion.

The results did not conform to Generally Accepted Accounting Procedures (GAAP), which are required of publicly traded companies in the U.S. , since GM is privately held, largely by taxpayers.

In spite of its restructuring, the company is not yet at a break even point, according to Fritz Henderson, CEO, primarily because of costs, including the enormous cost of  health care in the U.S.

Henderson characterized the results as “not satisfactory.”

General Motors Company Q3 2009 Unaudited Non-GAAP Results

“Old GM”July 1-July 9, 2009 GM July 10-Sept. 30, 2009
($mils)
Net revenue $1,637 $26,352
Earnings before interest and taxes (before special items) $(627) $(261)
Net interest $(209) $(250)
Special items (1) $79,672 $(505)
Earnings before taxes $78,836 $(1,016)
Taxes $522 $(135)
Total managerial income/(loss) $79,358 $(1,151)
Managerial operating cash flow (before special items)($bils) $(3.6) $3.3
Global cash and cash-related balance ($bils) $37.6 $42.6
(1) Special items for July 1-July 9, 2009 includes a reorganization gain of $80.7 billion.
Dollars and Sense!

Dollars and Sense!

The revenue, cost and cash flow numbers are indicators of GM’s actual health. These and subsequent results are needed to gauge the effectiveness of the reorganization imposed on it by the U.S. Treasury Department, and to assess the likelihood of how much U.S. and Canadian taxpayers will be paid back of  the $50 billion in loans advanced via their ownership stake of 61% of the company.

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GM Will Release Third-Quarter 2009 Results

Data needed to gauge the effectiveness of the reorganization.

by on Nov.12, 2009

The chairman actually works for the taxpayers, who need results to have their loans paid back.

The chairman actually works for the taxpayers, who need results to have their loans paid back.

General Motors Company plans to release its third quarter 2009 preliminary results on Monday morning, November 16, 2009.

The newly restructured company has not published financial results since it entered the bankruptcy process earlier this year in May. The results will cover the period from July 10, when it emerged from bankruptcy, through September 30 of this year.

In its bankruptcy filing, GM said it lost $88 billion between the end 2004 and the first quarter of this year. Analysts expect the company to again lose money but are uncertain as to the amount.

The company also will release figures starting in January 2009 and ending July 9 for the old General Motors Corporation, which remains in bankruptcy and is being liquidated.

The privately held company will not provide numbers that adhere to generally accepted accounting principles as required by the Securities and Exchange Commission for publicly held U.S. firms.

Results!

Results!

Still, revenue, cost and cash flow numbers would be indicators of its actual health. The results are needed to gauge the effectiveness of the reorganization imposed on it by the U.S. Treasury Department, and to assess the likelihood that U.S. and Canadian taxpayers will be paid back, some if not all of, the $50 billion in loans advanced via their ownership stake of 61% of the company.

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General Motors CEO and Chairman to Resign

Rick Wagoner is stepping down at GM, while Peugeot-Chairman ousts its CEO.

by on Mar.29, 2009

GM CEO Rick Wagoner, (r) and Bob Nardelli testifying before Congress. Is Nardelli out like Wagoner?

Rick Wagoner, (r) and Bob Nardelli (c) of Chrysler before Congress. Is Nardelli out like Wagoner?

While an official announcement is not expected until sometime Monday, General Motors Chairman and CEO, Rick Wagoner, is expected to resign after eight years as head of the struggling automaker at the direct request of the White House. That, insiders report, was the last remaining obstacle before President Barack Obama would approve a second round of federal loans needed by the automaker if it hopes to survive the current U.S. automotive sales slump.

The news, which was apparently first leaked out of the White House on Sunday afternoon, came as a setback for Wagoner, who said, just last week, that he had no plans on resigning, and that the GM Board of Directors supported him.

GM officially refused to comment since the announcement hasn’t been made, saying only “we are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement.” (more…)