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| GM sees $1.2 bn loss in Q3; to accelerate loan repayment |
| Press Trust of India / New York Nov 16, 2009, 22:09 IST |
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General Motors Company, the new firm which emerged after bankruptcy protection, has reported a loss of $1.2 billion in the three months ended September this year.
The company's revenue stood at $28 billion in the third quarter of this year, up about $4.9 billion as compared to revenue of General Motors Corporation (Old GM) in the second quarter of 2009, GM said while reporting its first financial performance figures since it began operations as a new company on July 10, 2009.
Amid improving global economic conditions, its healthier cash position and stabilising industry sales, GM also announced plans to accelerate repayment of its outstanding loans with the US and Canadian governments ahead of schedule.
"We have significantly more work to do, but today's results provide evidence of solid foundation we're building for the new GM. With a healthier balance sheet and a competitive cost structure, our focus is on driving top line performance," GM President and CEO Fritz Henderson said.
"We'll achieve that by winning customers over, one at a time, with vehicles that deliver performance and value," Henderson added.
For the July 10-September 30 period, GM had positive managerial operating cash flow of $3.3 billion, reflecting favourable working capital impact from production start up, timing of supplier payments and lower capital spending, a company statement said.
The company stated that its global share was 11.9 per cent in the third quarter, up 0.3 percentage points from the first half of the year for Old GM.
"In China, Brazil, India and Russia (BRIC), GM had 13 per cent of the combined market share in the third quarter, up 0.2 percentage points from the second quarter of 2009," the statement added.
GM finished the third quarter with US dealer inventories of about 4,24,000 vehicles, a reduction of about 1,58,000 units from the end of the second quarter.
The statement said that GM plans to accelerate repayment of its outstanding $6.7 billion in United States Treasury (UST) loans and $1.4 billion in Export Development Canada (EDC) loans ahead of the scheduled maturity date of July 2015.
GM plans to repay the US, Canadian and Ontario government loans in quarterly instalments from escrowed funds, beginning next month with an initial $1.2 billion payment to be made in December ($1 billion to the UST and $192 million to the EDC), followed by quarterly payments, it added.
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