GM Posts $4.3 Billion Loss for Post-bankruptcy 2009

Company wants to go public which will enable it to 'invest in designing, building and selling the world's best vehicles, attract the best people and access the capital markets'

Although General Motors announced a loss of $4.3 billion, the company said it hoped to achieve profitability in 2010.

The new GM, which emerged from bankruptcy protection on July 10, achieved global revenues of $57.5 billion and ended the year with net cash of one billion dollars.

"As the results for 2009 show, there is still significant work to be done," Chris Liddell, GM vice chairman and chief financial officer said.

"However, I continue to believe we have a chance of achieving profitability in 2010."

The net loss includes the pre-tax impact of a $2.6 billion settlement loss related to the United Auto Workers union retiree medical plan and a $1.3 billion foreign currency re-measurement loss.

"We are building the foundation that will allow us to return to public ownership," Liddell said.

GM has completed fresh-start accounting -- which includes determining the fair value of assets and liabilities -- and will file its third-quarter and 2009 results with the Securities and Exchange Commission. This is an "important step" in the process of preparing for an initial public stock offering, Liddell said.

"Going public will enable the company to invest in designing, building and selling the world's best vehicles, attract the best people and access the capital markets," the automaker said.

"One of the most important measures in establishing the foundation for going public is the company's ability to return to sustainable profitability."

Copyright Agence France-Presse, 2010

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