GM posts a $39B loss for the quarter
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From: mount airy
GM posts a $39B loss for the quarter
GM loss far worse than expected
No. 1 U.S. automaker sees much bigger operating loss than forecast as huge charge results in $39 billion net loss in period.
November 7 2007: 7:14 AM EST
NEW YORK (CNNMoney.com) -- General Motors reported a huge net loss Wednesday due to a $39 billion charge, along with a large operating loss that was far worse than Wall Street expectations.
The nation's No. 1 automaker, which was hit with a soft auto market and a two-day strike by the United Auto Workers union during the quarter, lost $1.6 billion, or $2.80 a share, excluding special items.
That compares to the forecast of a 25 cent a share loss from anaylsts surveyed by earnings tracker Thomson First Call and earnings per share $497 million, or 88 cents on that basis in the year-earlier period.
In addition, the company took a huge charge in the quarter, which was related to the writedown of tax credits for losses over the last three years, caused it to post a net loss of $39 billion, or $68.85 a share, for the third quarter of 2007, compared the net loss of $147 million, or 26 cents a share in the year-earlier period.
The charge, announced late Tuesday, raised concerns among investors that the automaker wouldn't be able to earn enough money going forward, despite winning a new cost-saving labor deal from the UAW, to fully utilize the tax credits it built up from losses the last three years.
Shares of Dow component GM (Charts, Fortune 500) were down more than 5 percent in early Frankfurt trading ahead of the report Wednesday on news of the charge.
Earlier Wednesday, GM rival Toyota Motor (Charts), which had been hit by sluggish sales in its two most important markets, Japan and the United States, nevertheless reported profit rose 11 percent and raised its earnings forecast for the full year.
No. 1 U.S. automaker sees much bigger operating loss than forecast as huge charge results in $39 billion net loss in period.
November 7 2007: 7:14 AM EST
NEW YORK (CNNMoney.com) -- General Motors reported a huge net loss Wednesday due to a $39 billion charge, along with a large operating loss that was far worse than Wall Street expectations.
The nation's No. 1 automaker, which was hit with a soft auto market and a two-day strike by the United Auto Workers union during the quarter, lost $1.6 billion, or $2.80 a share, excluding special items.
That compares to the forecast of a 25 cent a share loss from anaylsts surveyed by earnings tracker Thomson First Call and earnings per share $497 million, or 88 cents on that basis in the year-earlier period.
In addition, the company took a huge charge in the quarter, which was related to the writedown of tax credits for losses over the last three years, caused it to post a net loss of $39 billion, or $68.85 a share, for the third quarter of 2007, compared the net loss of $147 million, or 26 cents a share in the year-earlier period.
The charge, announced late Tuesday, raised concerns among investors that the automaker wouldn't be able to earn enough money going forward, despite winning a new cost-saving labor deal from the UAW, to fully utilize the tax credits it built up from losses the last three years.
Shares of Dow component GM (Charts, Fortune 500) were down more than 5 percent in early Frankfurt trading ahead of the report Wednesday on news of the charge.
Earlier Wednesday, GM rival Toyota Motor (Charts), which had been hit by sluggish sales in its two most important markets, Japan and the United States, nevertheless reported profit rose 11 percent and raised its earnings forecast for the full year.
Took a net loss of $39B (almost 2x it's market cap).
I feel somewhat bad for the people that work for GM, but hope it will lead to something like 0% for 72 months sale (including Corvettes). 0% 72 month loan would save you more than $7K a $45K 0% 6 year loan would be just $625/mo
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From: mount airy
Originally Posted by dombey,Nov 7 2007, 05:50 AM
uh....wow. So they lost what, 11x their analyst estimates? Wow.
They still lost (?) like $1.6B which is a lot. What are they doing?
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From: mount airy
Originally Posted by Wildncrazy,Nov 7 2007, 05:54 AM
And you are surprised why?
Its like (and I blame Lutz on down) it's like they don't have a clue on how to run a buisness.
Microsoft for years was always beating expectations. Thats what you need to do. Beat the hell out of expectations, turn the ship around.
GM is a big ship and it's not moving just the same old as it's been for years. I think they need to blow it up and pick up the pieces that are making money.
