GM Reports 3Q Net Loss of $39 Billion
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Joined: 08-20-2006
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From: Hillsdale, Michigan
GM Reports 3Q Net Loss of $39 Billion
GM Reports 3Q Net Loss of $39 Billion
By TOM KRISHER, AP Auto Writer
1 HOUR AGO
DETROIT - General Motors Corp. posted a $39 billion net loss in the third quarter, as an accounting shift involving deferred tax credits brought an abrupt end to string of three profitable quarters for the nation's largest automaker.
The whopping loss announced Wednesday was attributed to a $38.6 billion noncash charge largely related to establishing a valuation allowance against deferred tax assets in the U.S., Canada and Germany, as well as mortgage losses at GM's former financial arm, GMAC Financial Services.
A valuation allowance is taken when the future benefit of the deferred tax assets is less likely to be realized.
The net loss amounted to $68.85 per share, compared with a net loss of $147 million, or 26 cents per share, in the third quarter of last year.
The results included a $3.5 billion after-tax gain on the $5.4 billion sale of Allison Transmission in August.
Without special items, the company reported a $1.6 billion loss, or $2.80 per share.
The company reported record third-quarter automotive revenue of $43.1 billion and record global sales for the quarter of 2.39 million cars and trucks.
"We continue to implement the key elements of our North America turnaround strategy, and these initiatives are driving steady improvement in our financial results, despite challenging North America market conditions," GM Chairman and Chief Executive Rick Wagoner said in a statement.
By TOM KRISHER, AP Auto Writer
1 HOUR AGO
DETROIT - General Motors Corp. posted a $39 billion net loss in the third quarter, as an accounting shift involving deferred tax credits brought an abrupt end to string of three profitable quarters for the nation's largest automaker.
The whopping loss announced Wednesday was attributed to a $38.6 billion noncash charge largely related to establishing a valuation allowance against deferred tax assets in the U.S., Canada and Germany, as well as mortgage losses at GM's former financial arm, GMAC Financial Services.
A valuation allowance is taken when the future benefit of the deferred tax assets is less likely to be realized.
The net loss amounted to $68.85 per share, compared with a net loss of $147 million, or 26 cents per share, in the third quarter of last year.
The results included a $3.5 billion after-tax gain on the $5.4 billion sale of Allison Transmission in August.
Without special items, the company reported a $1.6 billion loss, or $2.80 per share.
The company reported record third-quarter automotive revenue of $43.1 billion and record global sales for the quarter of 2.39 million cars and trucks.
"We continue to implement the key elements of our North America turnaround strategy, and these initiatives are driving steady improvement in our financial results, despite challenging North America market conditions," GM Chairman and Chief Executive Rick Wagoner said in a statement.
Senior Member
Joined: 05-06-2006
Posts: 1,218
From: Illinois
Guess they sould have been selling retro 68 camaros for the last 5 years like i said over and over!! instead of crappy ssr`s
i can see the retro camaro spinning downward in the toilet as i type this!!!
i can see the retro camaro spinning downward in the toilet as i type this!!!
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Joined: 10-24-2006
Posts: 1,761
From: The Show-Me State
Key terms:
"$38.6 billion noncash charge"
"third-quarter automotive revenue of $43.1 billion"
"record global sales for the quarter of 2.39 million cars and trucks"
GM's doing just fine. They aren't going anywhere.
"$38.6 billion noncash charge"
"third-quarter automotive revenue of $43.1 billion"
"record global sales for the quarter of 2.39 million cars and trucks"
GM's doing just fine. They aren't going anywhere.
Senior Member
Joined: 07-21-2006
Posts: 1,708
From: Ft Walton Bch FL
Once that contract kicks in, they'll be in much better shape. Their workforce is aging and the cost of health care is killing them financially.
Sounds like it's time to buy GM stock and wait for the upswing!
Sounds like it's time to buy GM stock and wait for the upswing!
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