GM Loses $6 Billion in Q1

Loss due to 40% drop in production

General Motors reported a net earnings loss of $6 billion in the first quarter, as it faced the prospect of bankruptcy saddled with mounting debt.

Excluding special items, GM reported an adjusted net loss of $5.9 billion, or $9.66 per share, compared to a $381 million loss or 67 cents per share compared to first quarter of last year.

Most analysts had expected the automaker to post a loss of more than $6.7 billion.

GM said its first quarter revenue plunged 47% to $22.4 billion from $42.4 billion in the year-ago quarter.

"The drop in revenue was primarily due to GM's production volume decline of 903,000 units, or approximately 40%, on a global basis year-over-year," the statement said.

Debt-ridden GM has taken more than $15 billion in government loans and faces a June 1 deadline to complete a major restructuring plan or force to follow its rival Chrysler into bankruptcy court.

Copyright Agence France-Presse, 2009

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