GM Reports Massive Loss; Nearly Out of Cash
November 7th, 2008Via: CBC News:
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 in the first half of next year its “estimated liquidity will fall significantly short” of what it needs to continue operating. It said the only thing that would save it would be a significant improvement in economic and automotive industry conditions, help from the federal government, better access to capital markets or some combination of those options.
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.
Obvious since wtf is going on GMaycee
offering 4.75 on 12 month cd
like indyee mack and zions (UT) bank
please invest since we dogged you on 1% interest
Come to teh casino
ze plane ze plane!
whole fuckin country on fantasy island?
The electric car gets burned again. The Volt is not expected to come off the line for 2 years.
If people don’t buy those GMAYCEE CD’s so they can use steal teh munny.
oh noes
Ricardo Montleban accent here
Smile’s everyone SMILE’S
http://www.reuters.com/article/newsOne/idUSTRE4A64H820081107