GM Posts $9.6 Billion Loss
2009年2月27日
General Motors Corp. capped a dismal 2008 with a $9.6 billion net loss in the fourth quarter as a stunning downturn throughout global operations heightened management's concerns about the Detroit auto maker's viability.
GM burned through $6.2 billion in cash during the last three months of 2008, and $19 billion over the course of the year, as the rate of sales declines outpaced the company's ability to cut costs. GM had entered the year with more than $30 billion in liquidity reserves, or at least $16 billion more than the company needed to fund operations.
That cushion disappeared as U.S. light-vehicle sales skidded to multidecade lows and a freeze in the credit markets spoiled the company's fund-raising attempts. GM ended 2008 with $14 billion in available liquidity.
GM lost $30.9 billion in total last year as revenue fell 17% to $149 billion from $180 billion in 2007. The results represent the second-worst financial performance in its 100-year history and push the cumulative net loss to $82 billion since GM Chief Executive Rick Wagoner began an intense restructuring of the auto maker in 2005.
GM is now subsisting on $13.4 billion in government bailout loans. Mr. Wagoner plans to meet with members of President Barack Obama's administration Thursday to plead for as much as $16.6 billion more, including $4 billion that is needed to fund operations in March and April. GM said it needs an additional $7.5 billion in loans from the Department of Energy to update its products with more fuel-efficient offerings.
'GM requires this funding in 2009 to continue operations until global automotive sales recover and its restructuring actions generate benefits, resulting in the company being able to fund its own operating requirements,' the company said in a press release. The car maker plans to burn an additional $14 billion in cash this year, Chief Financial Officer Ray Young said in a conference call.
Mr. Young warned investors that it may not be able meet its auditors''going concern' requirements, meaning the the company could break covenants on billions of dollars in debt in coming months. These defaults could increase the amount of bailout funds the government would have to deliver to GM.
GM's auditors must make a decision on the company's 'going concern' status by the end of March. Mr. Young said further government funding would help the auditors reach a positive conclusion.
Thursday's disclosure could be GM's way to provide 'encouragement to [Washington] to address the issue that is on the table and quiet some of the speculation concerning what the government will do,' said Kimberly Rodriguez, an adviser with the consulting firm Grant Thornton.
Mr. Young said GM continues to work with the United Auto Workers union and bondholders on an overhaul of labor costs and debt obligations, respectively, but the parties have not struck a deal. GM is looking to cut two-thirds of its $27 billion debt load through a debt-for-equity swap, and it is trying to convince the UAW to take stock instead of cash for at least half of the $10 billion it owes for retiree health care.
GM also reported a substantial deterioration in the status of its pension funds. The company said it U.S. hourly and salaried pension commitments are underfunded by $12.4 billion because of weak market conditions and a reliance on the funds to pay for restructuring actions in recent years.
The fourth-quarter numbers also revealed a profound deterioration of GM's once-booming operations outside the U.S.
During the second half, GM's international unit showed marked decline, with the company reporting a fourth-quarter loss of $1.9 billion in Europe, $917 million in Asia and $181 million in Latin America. In recent quarters, GM has relied on strong operations overseas, notably in China, Russia and Brazil, to offset weakness in its core U.S. market.
'The impact of the credit crisis has started to spread to emerging markets,' Mr. Young, GM's chief financial officer, said Thursday in an interview with reporters. 'It was a very, very challenging quarter.'
The auto maker has said needs at least an additional $6 billion in loans from non-U.S. governments for its viability plan to work.
German officials will meet Saturday to discuss possible aid for Opel, GM's largest European unit. Opel has said it needs at least $4.2 billion in capital to survive and become less dependent on GM.
GM has indicated that it is open to selling a stake in Opel, and German politicians are under pressure from workers to bail out the car maker to help save 25,000 jobs, a number that more than doubles when including parts suppliers and other Opel-linked companies.
The heart of GM's problems remain centered in North America, where sales fell to $19.3 billion in the quarter, compared to $28.1 billion a year earlier. The auto maker's problems in the region promise to worsen in 2009 due to a production shutdown that shuttered the company's plants in January.
Sharon Terlep / John D. Stoll
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