General Motors Renaissance Center, Detroit, Michigan
General Motors has released today its first financial results since emerging from bankruptcy on July 10 as a ‘new’ company. The results are for the first 83 days of operation and from an initial inspection things are looking much better for GM.
Excluding special items, GM has posted an operating loss of $261 million and a managerial net loss of $1.2 billion. However, the big news here is revenue of $28 billion in the third quarter of 2009, which was up more than $4.9 billion compared to the revenue recognized by the ‘old’ GM for the previous quarter.
Much of this was attributed to strong sales in emerging markets like China and Brazil. In fact, GM’s global market share was 11.9% in the third quarter, up 0.3 percentage points from the first half of the year for the old GM. In the U.S., GM’s market share stayed flat at 19.5% over the same period.
Looking ahead to 2010, GM anticipates modest growth, with total industry vehicle sales across the globe estimated at 62 to 65 million units, with a modest recovery in the U.S. market where the outlook for the 2010 calendar year for total vehicles is estimated at 11-12 million units.
Importantly, GM intends to make payments totalling $2.5 billion in the next quarter for the respective U.S., Canada, Ontario and Germany government loans.