http://money.cnn.com/2008/11/07/news...ion=2008110711
NEW YORK (CNNMoney.com) -- General Motors shook an already embattled auto industry Friday as it reported a huge loss that was much worse than expected and warned it is in danger of running out of cash in the coming months.
GM, the nation's largest automaker, reported it lost $4.2 billion, or $7.35 a share, excluding special items. That's up from the loss $1.6 billion or $2.86 a share it reported a year earlier and was far worse than the forecast of analysts surveyed by earnings tracker Thomson Reuters, which had forecast a loss of $3.70 a share.
But the most shocking news came in its statements about its cash position. GM said it had burned through $6.9 billion during the quarter and warned that it "will approach the minimum amount necessary to operate its business" during the current quarter.
In addition, the company said that that in the first half of next year its "estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve."
The report was by far the most grim assessment by a company that has insisted it is not considering filing for bankruptcy court protection. While the release did not mention the threat of bankruptcy, the outlook appeared to raise the possibility of such a dramatic step.
The company announced a series of additional job cuts and spending cuts designed to help it improve its cash reserves by $5 billion. But it warned even those steps would not be enough without a turnaround.
GM said that it may need help from the federal government.
"The company has engaged in discussions with various U.S. federal government agencies and congressional leaders about the ... the need for immediate government funding support given the economic and credit crisis and its impact on the industry, including consumers, dealers, suppliers and manufacturers," according to a company announcement.
Shares of GM (GM, Fortune 500), whose trading was halted ahead of the announcement, fell 16% after they resumed.