GM has posted an adjusted net loss of $5.9bn or $9.65 per share, compared to adjusted net income of $46m, or $0.08 per share a year previously.


An earlier Reuters analysts’ poll had pegged the loss at an average $7.40 a share before special items.


Including special items, the company reported a net loss of $9.6bn, or $15.71 per share for the quarter compared to a net loss of $1.5bn, or $2.70 per share in 2007.


GM said it made a structural cost improvement in North America of $3.0bn in 2008.


“Fourth quarter and calendar year 2008 financial results were affected by the dramatic deterioration in global economic and market conditions during the year, declining consumer confidence and a 50-year low in per-capita auto sales in the United States,” it said in a statement.

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For the 2008 calendar year, GM reported an adjusted net loss, excluding special items, of $16.8bn, or $29.00 per share versus an adjusted net loss of $279m, or $0.49 per share in 2007.


Including special items, the company reported a loss of $30.9bn, or $53.32 per share, compared to a reported loss of $43.3bn, or $76.52 per share in 2007, which included a non-cash special charge of $38.3bn in the third quarter related to the valuation allowance against deferred tax assets.


GM total revenue in 2008 was $149bn, compared with $180bn in 2007 while the core automotive business generated $148bn in 2008, down from $178bn in 2007.


“The revenue decline was predominantly due to the precipitous drop in sales amid record low consumer confidence in the US and sharply lower sales across all of GM’s operating regions due to economic turmoil in the global markets,” the automaker said. “Global industry sales in 2008 were down 5%, or 3.6m vehicles, versus 2007 levels, and US industry sales fell by 18%, or nearly 3m units.”


“2008 was an extremely difficult year for the US and global auto markets, especially the second half,” chairman and CEO Rick Wagoner said in a statement. 


“These conditions created a very challenging environment for GM and other automakers, and led us to take further aggressive and difficult measures to restructure our business.


“We expect these challenging conditions will continue through 2009, and so we are accelerating our restructuring actions.”


Q4 revenue of $30.8bn was down from $46.8bn in 2007. Revenue from automotive operations was $30.6bn compared to $46.5bn, largely driven by the sharp decline in global industry volume.


Fourth quarter results reflected special items totalling $3.7bn and including a $1.1bn impairment charge primarily relating to actions being taken to sell the Hummer and Saab brands; $1.0bn charge relating to adjustments to the value of deferred tax assets in various countries outside of the US; $900m of restructuring and capacity-related costs; a $660m increase to the Delphi reserve relating to the valuation of future pension obligations; $610m of gross goodwill impairments in Europe and North America and a $533m net gain relating to GM’s portion of the GMAC bond exchange gain, net of an impairment taken on GM’s holdings in GMAC.


An accounting rules change had a positive net effect on fourth quarter earnings of $436m.


GM’s global automotive operations posted an adjusted loss before tax of $10.4bn in 2008 (reported loss of $16.3bn), compared to adjusted income before tax of $553m in 2007 (reported loss of $1.9bn).


In the fourth quarter 2008, GM’s automotive operations had an adjusted loss before tax of $4.0bn (reported loss of $6.4bn), compared to an adjusted loss before tax of $803m in the year-ago quarter (reported loss of $1.2bn).


GM 2008 worldwide sales were 8.35m vehicles, down 11%, or 1.01m vehicles, driven by the industry-wide contraction in global vehicle sales.  In 2008, 5.38m vehicles, or 64% of GM’s global sales, were outside of the US, up from 59% a year ago.


Its Asia Pacific (GMAP) and Latin America, Africa and Middle East (GMLAAM) regions each grew sales volume by nearly 3%.


GM North America (GMNA) posted an adjusted loss before tax of $2.1bn in the fourth quarter 2008 (reported loss of $3.5bn), compared to negative $1.1bn in 2007 (reported loss of $1.3bn).


For 2008, GMNA posted an adjusted loss before tax of $9.4bn (reported loss of $14.1bn), compared to negative $1.5bn in the year-ago period, excluding special items (reported loss of $3.3bn).


For the fourth quarter 2008, GM Europe (GME) posted an adjusted loss before tax of $956m (reported loss of $1.9bn) versus neagtive $215m in 2007 (reported loss of $445m).


For 2008, GME posted an adjusted loss before tax of $1.6bn (reported loss of $2.8bn), compared to a $55m profit in 2007, excluding special items (reported loss of $524m).


In the fourth quarter, GMLAAM posted an adjusted loss before tax of $154m (reported loss of $181m), down from profit of $424m in the fourth quarter of 2007 (reported income of $424m).


For the year, GMLAAM posted adjusted earnings before tax of $1.3bn (reported income of $1.3bn), which was comparable to 2007 adjusted earnings of $1.3bn (reported income of $1.3bn).


GMAP posted an adjusted loss before tax of $879m for the fourth quarter (reported loss of $917m), compared to profit of $72m in the year-ago period (reported income of $72m).


For the year, GMAP posted an adjusted loss before tax of $664m (reported loss of $800m) compared to profit of $744m (reported income of $681m) for 2007.


In the fourth quarter, GMAC Financial Services (GMAC) reported net income of $7.5bn, driven largely by the company’s December bond exchange, compared to a net loss of $724m in the fourth quarter of 2007.


Excluding the $11.4bn gain on its bond exchange, GMAC’s results in the fourth quarter reflected a net loss of $4.0bn, driven primarily by losses in North America automotive finance and continued losses at the Residential Capital home mortgage arm.


GMAC reported net income of $1.9bn in 2008, compared with a net loss of $2.3bn in 2007.


GM booked an adjusted loss of $4.7bn attributable to GMAC, as a result of its 49% equity interest for the year, and an adjusted loss of $1.9bn for the fourth quarter. This excluded a fourth quarter net gain of $533m related to GM’s portion of GMAC’s bond exchange gain that was largely offset by an impairment of GM’s investment in GMAC.


GM said readily available liquidity had halved to $14.0bn at 31 December versus a year previously while its adjusted automotive operating cash flow was negative $5.2bn in the fourth quarter and negative $19.2bn for the full year, largely due to lower volume across GM’s global operations and negative working capital.


It had received $13.4bn in loans from the US government in three tranches in December and January and submitted a restructuring plan to the treasury in return.


“As a result of year-end measurements of GM’s net pension obligations, it was determined that the US hourly and salaried qualified pension plans are currently underfunded, on a combined basis, by approximately $12.4bn,” it said.


“While no additional pension contributions are anticipated over the next three years, the funded status of the pension plan is subject to a number of variables.  GM will continue to analyse its pension funding strategies going forward.”


No financial outlook for 2009 was given.