GM says it lost $1.2B post-bankruptcy exit

GM said today the company is turning the business around after posting only a $1.2B loss after emerging from bankruptcy

General Motors announced today that it has lost $1.2 billion since emerging from bankruptcy protection through September 30, 2009.

The company says the number is far better than expected and that it is making progress towards change.

GM chief executive Fritz Henderson said today in a statement, “today’s results provide evidence of the solid foundation we are building for the new GM,”

 Total revenue in Q3 2009 was $26.4 billion, up from $22.4 billion in the same period last year.

The company was also cash flow positive in Q3, retaining $3 billion dollars in cash after expenditures. GM says it does not expect it to be cash flow positive in Q4 because it must repay outstanding debts (including to government loans and $2.8 billion charge to Delphi).

Post bankruptcy, GM now aggregately holds $17 billion in debt, down from $94.7 billion before the company entered bankruptcy protection.

Global market share was also up to 11.9-percent in Q3, aided by increases sales especially in China were total sales were up to 478,000 cars, or up 6-percent from Q2 2009.

GM said it would begin to repay government loans on the good results. GM says it will be repaying the $700 million (on the $1.3 billion principal) it owes to the German government, the $1.4 billion to the Canadian governments by the end of December, and it said it would also pay off U.S. government loans totaling $6.7 billion in 2010.

GM also said the company is prepping for an IPO sometime in 2010, contingent on the company being profitable.

GM is expected to release fiscal 2009 earnings by the end of March 2010.

tag TAGS: , ,
Short URL:
b2p Ensure that you follow us on Twitter and Like us on Facebook
Peggy holds a Bachelor Arts degree with honors in Economics from York University in Toronto, Canada. She is a Certified Management Accountant (CMA). She has also passed Level I of the Chartered Financial Analyst (CFA) Program. She is also a realtor. Write to [email protected]
We are perfectly committed to the highest ethical and professional codes of conduct and standards in the industry on a firm wide basis. Learn more about us, our contributors, and our governance
We encourage you to comment. Comments are moderated. Comments that are abusive, off-topic, have marginal substance, or include promotional content will be removed. We cannot facilitate requests to edit or remove comments, or explain moderation decisions

Business 2.0 Press publishes exclusive business tech news and analysis covering start-ups to large-caps from Bay & Wall streets since 2008 from a group of highly knowledgeable industry professionals that abide by the toughest industry codes of conduct and professional standards lightMore

lightAdd value by subscribing (RSS)

logo has the most stock ratios for public companies. Get the most comprehensive micro insight on public firms available on the web, all for free.
Stock Fractionsgo


Colon cancer is one of the leading causes of death. Irrespective of family history, everyone is exposed to the risk. About 90% of colon cancer cases begin from non-cancerous tumors, polyps, which could form in the large bowel. Screening with a colonoscopy will painlessly remove any polyps hence almost entirely reducing your risk of developing the horrible disease. The good news is that about 90% of colon cancer cases are preventable through a simple (yes, simple) colonoscopy.
Learn moreatom
Public service message from Business 2.0 Press