GM Posts $9.6 Billion Loss in 4Q
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General Motors, the giant but financially struggling auto maker, reported a massive fourth-quarter loss Thursday as car sales fell to multiyear lows and the credit crisis made financing the company’s operation nearly impossible.
The loss came to $9.6 billion, or $15.71 a share, compared with a loss of $1.5 billion, or $2.70 a share, in the year-ago period.
The loss excluding special items was $9.65 a share, much worse than the $7.39-a-share loss analysts were looking for out of the company, according to Thomson Reuters.
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“2008 was an extremely difficult year for the U.S. and global auto markets, especially the second half,” said GM Chairman and CEO Rick Wagoner in a statement. “These conditions created a very challenging environment for GM and the other auto makers.”
GM said it lost for all of 2008 nearly $31 billion, or $52.32 a share. That’s compared to a full-year loss in 2007 of $43.3 billion, which included that year a one-time charge of $38.3 billion.
Revenue during the quarter fell to $30.8 billion, down from $46.8 billion from the same quarter a year ago, as auto sales fell to levels not seen since 2003. For the full year, revenue at GM fell to $149 billion, down from $180 billion from 2007.
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