GM Announces $4.3 Billion Loss in First Post-Bankruptcy Report
General Motors announced Wednesday it lost $4.3 billion in the six months that followed its emergence from the fourth largest corporate bankruptcy in U.S. history last summer.
While the loss may seem staggering, the company’s first official accounting since exiting bankruptcy revealed areas of progress. The so-called “new GM” saw total sales and revenue increase 22 percent to $57.5 billion in the second half of 2009, from $47.1 billion. The Detroit automaker also generated $1 billion in cash during that period, and by the end of the year it had $22.7 billion in cash reserves.
Of course, the nation’s largest automaker has a ways to go before it can begin offering shares for public trading. GM still owes the United States $4.7 billion, and before the government will sell its majority stake in the company, the automaker must demonstrate that it is healthy enough to survive without government aid.
According to a statement from the company’s chief financial officer, Christopher Liddell:
“As the results for 2009 show there is still significant work to be done. However, I continue to believe we have a chance of achieving profitability in 2010. We are also dedicated to delivering on our commitments to our stakeholders. For example we remain committed to repaying the outstanding balance of the U.S. Treasury and Export Development Canada loans by June 2010 at the latest.”