GM Posts $1.15 Billion Loss after Bankruptcy, Generates $3.3 Billion in Cash

[FenwickHockey65]

Link to article

Nov. 16 (Bloomberg) -- General Motors Co., signaling confidence in its recovery from bankruptcy, said it generated $3.3 billion in cash in the third quarter and plans to start repaying government loans early.

The biggest U.S. automaker said today it lost $1.15 billion after its July 10 exit from a restructuring engineered by the Obama administration. Cash on hand totaled $42.6 billion at the end of the quarter, and GM reported progress in cutting jobs and shutting dealers.

The results offered Detroit-based GM’s first glimpse of its financial performance since emerging from Chapter 11 and shedding the remnants of the old General Motors Corp. on July 10 under the stewardship of Chairman Ed Whitacre, 68, and Chief Executive Officer Fritz Henderson, 50.

“The numbers are encouraging,” Maryann Keller, president of consultant Maryann Keller & Associates in Stamford, Connecticut, said in a Bloomberg Television interview. “What it demonstrates is that the government gave GM a reorganized balance sheet that made them more competitive.”

GM reported unaudited data for July 1 through July 9, for the pre-bankruptcy company, and for the period since July 10. Revenue was $28 billion for the full three months.

“We are ahead of the bankruptcy plan, not only in operations, but with some contingencies we provided for that we have been able to manage,” Henderson said in a Bloomberg Television interview.

[Mr. Wyndham]

So when all is said and done, at the end of the 3rd,...did they make money or lose money?

[FenwickHockey65]

Originally Posted by Dragoneye

So when all is said and done, at the end of the 3rd,...did they make money or lose money?

They lost $1.15 billion due to buying out Delphi and some UAW-related expenditures. They'll probably lose some more money from restructuring Opel in the coming months. However, GM is still on track for profit sometime next year.

[Mr. Wyndham]

Originally Posted by FenwickHockey65

They lost $1.15 billion due to buying out Delphi and some UAW-related expenditures. They'll probably lose some more money from restructuring Opel in the coming months. However, GM is still on track for profit sometime next year.

Hmm...as expected, then. They never quoted an expected profit until 2010, anyways....but...considering they feel they're in a position to start repaying the loans early, I'd say this is okay/good news!

[FenwickHockey65]

Originally Posted by Dragoneye

Hmm...as expected, then. They never quoted an expected profit until 2010, anyways....but...considering they feel they're in a position to start repaying the loans early, I'd say this is okay/good news!

And you also need to consider that before bankruptcy, GM was burning through about $2 billion a MONTH.

[Mr. Wyndham]

Originally Posted by FenwickHockey65

And you also need to consider that before bankruptcy, GM was burning through about $2 billion a MONTH.

Very true, and excellent point. I still won't be happy until they post a profit for a year straight...which probably won't start to happen for another 3-6mo. or so...but this is progress, and they've got new cars coming soon that will aid next years reports.

[coolman]

That's encouraging news! I hope they keep it up.

[derklug]

As long as the economy doesn't do a double dip, GM should be good. If we do hit another dip, expect all 3 of the big 3 to be looking for cash from Uncle Sam.