GM post $4.3 Bil July-Dec loss

Ed Note: We have said many times that racing in NASCAR doesn't sell cars and wonder how long the Big 3 will keep wasting big bucks on NASCAR will no return. It would be better spent on developing new technology.

General Motors Co. posted a $4.3 billion net loss last year, according to a financial report released this morning that offers the first comprehensive look at the company's finances since it emerged from bankruptcy court in July.

The automaker also posted global revenue of $57.5 billion at the end of December.

The bulk of GM's $4 billion in fourth-quarter losses were in North America, where GM lost $3.4 billion.

Chris Liddell, GM's vice chairman and CFO, said GM must return to profitability. He said the fourth quarter loss "gives you some sense of the financial hill we intend to climb."

GM had $36.2 billion in cash on hand at the end of last year. GM revalued its physical assets, valuing them at $19 billion — an $18 billion reduction over what they worth before GM's bankruptcy filing.

The $4.3 billion net loss included a $2.6 billion pre-tax settlement loss related to the United Auto Workers retiree medical plan and a $1.3 billion foreign currency re-measurement loss, GM said today.

The financial report, which was delayed a week, represents a significant milestone for GM and reveals a new balance sheet for the company with new values attached to assets and liabilities.

The valuation process, called fresh-start accounting, is a first step toward GM selling shares of the company to the public.

"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," Liddell said.

The financial report covers the period from July 10 — when GM was created as a new company out of bankruptcy court — through December. GM said comparisons to prior quarterly reports are almost impossible because the old GM that filed bankruptcy, now known as Motors Liquidation Co., is an entirely different company.

Liddell, along with Controller and Chief Accounting Officer Nick Cyprus, are discussing the results during a 10 a.m. conference call with media and analysts.

Liddell said last month GM has a reasonable chance of being profitable in 2010, and might start selling public shares in the company this year.

The annual report provides a detailed financial roadmap of GM's first few months after emerging from bankruptcy in July with the help of about $50 billion in federal aid.

The balance of the $50 billion in federal aid is tied up in equity stakes split among the U.S. and Canadian governments, a union-run trust for retiree health care and creditors.

GM disclosed third-quarter 2009 results in November that showed the company lost $1.15 billion between July 10 and Sept. 30, better-than-expected results that executives said reflected greater operational stability and progress.

But those results did not reflect fresh-start accounting, so GM today also will release updated third-quarter results.

The old GM lost about $88 billion from the end of 2004 through early last year. Detroit News