General Motors has announced that it posted a $4.3 billion loss for its first six months out of bankruptcy, which essentially covers the period from July 10 to December 31 2009. As you may recall, July 10 of last year was the date the ‘new’ GM was formed through the acquisition of substantially all the assets and certain liabilities of the former company.
Despite the bad start, GM is still confident of profits this year or at least breaking even. Speaking with The Wall Street Journal, GM’s chief financial officer, Chris Liddell, said the company has a good chance of returning to profitability this year if sales can improve. This sentiment is backed by GM CEO Ed Whitacre who back in January predicted that the company may return to profit by the end of the year.
Most of the losses continued to be concentrated in the North American market, where GM rang up $3.4 billion of losses, while GM Europe lost $814 million in the period. Part of the loss included money repaid to the government and other debts--GM will have to pay a further $6.7 billion by the end of June.
Other details released by GM included revenues from its global operations of $57.5 billion and positive cash flow of $1 billion for the same six month period.