General Motors has said it will make a net profit in the fourth quarter but will delay reporting 2006 financial results because of accounting errors and other issues.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The world’s largest automaker said it found tax accounting mistakes from before 2002 that will end up increasing its retained earnings for all subsequent years by anywhere from $450m to $600m, according to the Associated Press (AP).


Chief financial officer Fritz Henderson reportedly said the company cannot yet state the size of its expected fourth-quarter profit, but it would be the auto giant’s first quarterly gain since the fourth quarter of 2004, when it made $630m.


GM, which reported losing $US3bn in the first nine months of last year and lost $10.6bn in 2005, also is looking into other accounting problems involving hedging activities, AP said.


The earnings report delays also can be attributed to the company’s financial arm, General Motors Acceptance, needing more time to close its books on 2006, Henderson reportedly told analysts during a conference call. GM sold a 51% stake in GMAC to a group of investors for $14bn last year, AP noted.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The report added that the automaker had planned to release quarterly and annual earnings for 2006 on Tuesday, but now has delayed that indefinitely, but still intends to file its annual report with the Securities and Exchange Commission by a 1 March deadline.


GM will have to restate its retained earnings after 2001 because it overstated deferred tax liabilities, Henderson said, according to the Associated Press.