General Motors Company (aka ‘new GM) on Wednesday (7 April, 2010) said it had completed fresh-start accounting and booked a net loss of US$4.3bn on global revenue of $57.5bn for the period 10 July to 31 December 2009, and was filing its third quarter 2009 Form 10-Q and 2009 Form 10-K with the US Securities Exchange Commission (SEC) today.
“We are building the foundation that will allow us to return to public ownership,” said Chris Liddell, who recently joined GM from Microsoft as vice chairman and CFO. “Completing fresh-start accounting is an important step in that process.”
In a statement, GM said the new company, which was formed on 10 July through the acquisition of most assets and some liabilities of Motors Liquidation Company (formerly General Motors Corporation or ‘old GM’), had to complete the process of adopting fresh-start accounting to record the acquisition and establishment of the new GM as well as determine the fair value of assets and liabilities and implement new accounting policies.
Net cash from operating activities totalled $1bn in the period, GM said.
The $4.3bn net loss included the pre-tax impact of a $2.6bn settlement loss related to the UAW retiree medical plan and a $1.3bn foreign currency re-measurement loss.
“Going public will enable the company to invest in designing, building and selling the world’s best vehicles, attract the best people and access the capital markets. One of the most important measures in establishing the foundation for going public is the company’s ability to return to sustainable profitability,” GM said in the statement.
“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 US Treasury and Export Development Canada loans by June 2010 at the latest.”