No. Note that the per share loss was half what was expected by analysts. This is actually somewhat conforting news- GM is doing better than outsiders thought.azote said:
.Reuters
GM posts quarterly net loss of $4.8 bln
Thursday January 26, 8:02 am ET
DETROIT (Reuters) - General Motors Corp. (NYSE:GM - News) on Thursday posted a quarterly net loss as it struggled with high costs, shrinking market share and sluggish sales of sport utility vehicles.
The world's largest automaker reported a fourth-quarter net loss of $4.8 billion, or $8.45 a share, compared with a loss of $99 million, or 18 cents a share, a year earlier.
Excluding one-time items, the company posted a loss of $2.09 a share. On that basis, analysts, on average, expected a loss of 4 cents a share, according to Reuters Estimates.
Revenue fell to $51.2 billion from $51.4 billion a year earlier.
The auto giant has been facing high labor and raw materials costs, loss of market share to foreign rivals, and disappointing sales of high-profit SUVs
No. Note that the per share loss was half what was expected by analysts. This is actually somewhat conforting news- GM is doing better than outsiders thought.azote said:from:GM posts quarterly net loss of $4.8 bln [Reuters, 8:02AM Jan 26, 2006]
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do I smell bankruptcy ?
uh...
Agree. However, I think they are moving in that directions, slower or faster.Fformula88 said:GM is still far from any kind of bankruptcy filing, since they still have many, many billions in cash reserves.
True, anytime a company is posting consecutive quarterly losses they are heading in the direction of bankruptcy. However, there seems to be a feeling that a bankruptcy is really close, and I just don't see it that way. Estimates I have seen indicate GM can operate for 3+ more years with their current rate of losses based on remaining cash reserves.TastyBake said:Agree. However, I think they are moving in that directions, slower or faster.
GM is not alone. Ford and GM are already at Junk status as far as credit, making it harder for them and their suppliers to get bank finances (really high rate). Ford is now further down the junk credit line. It also lost $1.4 Billion for most of 2005.
On the other hand, (the flipside of the argument - not that I support it, but what other people have counterargued with me about...) some people subscribe to the "loss begets loss" hypothesis, or the thinking of the "downward spiral".Fformula88 said:True, anytime a company is posting consecutive quarterly losses they are heading in the direction of bankruptcy. However, there seems to be a feeling that a bankruptcy is really close, and I just don't see it that way. Estimates I have seen indicate GM can operate for 3+ more years with their current rate of losses based on remaining cash reserves.
That isn't too far down the road, but it also gives GM has time to turn around their finances. They are making cuts to expenses already, have had success with some of their most recent product launches, and are about to roll out their new full size trucks and SUV's which will be very profitable if they are well received.
Gas prices are hurting the growth of the big truck segment, but there are still plenty of buyers in that segment. How well these trucks do will probably be the deciding factor in whether GM can avoid bankruptcy.
Yeah, they're here, but now they have been absorbed by a German company. All the employees have to wear lederhosen and must eat schnitzel for lunch...Rick Tinley Park said:... Back in the 1970's we had the same thing and Chrystler went under... Gee we miss them.. Oh, wait they are still here!
This was the case with gas crisis in the early 70's and then again with the gas crisis of the late 70's, except they were cars that were as heavy and gas guzzling as a Hummer. Deja Vu all over again! :banghead:TexaSky said:The big three are also paying for their reliance on high margin SUV's and not working to improve the efficiency and attractiveness of their high efficiency cars. The $2-$3 gas prices have hurt the big three cash cows (SUV's) and the best economy cars are made by the Japanese and Koreans.
Maybe GM will be taken over by a Korean or Japanese company and they will be forced to wear gi's and eat stir fry :lol: Or am i exaggerating :lol:KappaMan said:Yeah, they're here, but now they have been absorbed by a German company. All the employees have to wear lederhosen and must eat schnitzel for lunch...
...OK, I'm exaggerating again... but not THAT much... :lol:
Agreed. However, I don't totally blame the big three. I blame the demand also i.e., the consumer.richmcc said:This was the case with gas crisis in the early 70's and then again with the gas crisis of the late 70's, except they were cars that were as heavy and gas guzzling as a Hummer. Deja Vu all over again! :banghead:
Yes, but somehow the Japanese did not manage to fall into this trap, again and again, but US Car Companys did, how come?TastyBake said:Agreed. However, I don't totally blame the big three. I blame the demand also i.e., the consumer.
I think the Japanese work the hardest on the cars that work in their market...the small cars. Hummers and Escalades don't fit very well into their infrastructure. Honda and Toyota just recently got into the truck business, but that was just to sell over here in "bigger is better USA."richmcc said:Yes, but somehow the Japanese did not manage to fall into this trap, again and again, but US Car Companys did, how come?
The Japanese culture can't relate to having big cars and trucks, large space in a city, and long open plains to drive hard around since Japan is a smaller land in comparison to America. Hence they constant concentration in smaller commuter cars. Also, the Japanese automakers don't have the experience we have in large, high torque engine vehicles (ex. engine size in Toyota trucks). They stuck to what they know made small SUVs.richmcc said:Yes, but somehow the Japanese did not manage to fall into this trap, again and again, but US Car Companys did, how come?
Opps, didn't read this. We said exactly the same thing, except you said it with less wordsTexaSky said:I think the Japanese work the hardest on the cars that work in their market...the small cars. Hummers and Escalades don't fit very well into their infrastructure. Honda and Toyota just recently got into the truck business, but that was just to sell over here in "bigger is better USA."