General Motors announced today a net loss of $4.3 billion dollars from July 10, 2009 through Dec. 31, 2009, the period immediately after the company emerged from bankruptcy.
This loss includes two big chunks of change. First is the pre-tax impact of a $2.6 billion settlement loss associated with retiree medical benefits for the United Auto Workers union. Second,it also includes a $1.3 billion foreign currency re-measurement loss.
During this same period, GM announced revenues of $57.5 billion and net cash provided by operating activities of $1 billion.
With this, General Motors has completed fresh-start accounting practices, a major step required of the company before they can go public again.
“We are building the foundation that will allow us to return to public ownership,” said Chris Liddell, GM vice chairman and CFO, in a press release on the GM site. “Completing fresh-start accounting is an important step in that process.”
“As the results for 2009 show there is still significant work to be done. However, I continue to believe we have a chance of achieving profitability in 2010,” said Liddell. “We are also dedicated to delivering on our commitments to our stakeholders. For example we remain committed to repaying the outstanding balance of the U.S. Treasury and Export Development Canada loans by June 2010 at the latest.”
Let's hope so and wish them well. Remember, they're on our dime now.