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GM Suffers $39 BILLION 3Q Loss!
GM Reports 3Q Net Loss of $39 Billion
By TOM KRISHER, AP Auto Writer
1 HOUR AGO
DETROIT - General Motors Corp. posted a $39 billion net loss in the third quarter, as an accounting shift involving deferred tax credits brought an abrupt end to string of three profitable quarters for the nation's largest automaker.
The whopping loss announced Wednesday was attributed to a $38.6 billion noncash charge largely related to establishing a valuation allowance against deferred tax assets in the U.S., Canada and Germany, as well as mortgage losses at GM's former financial arm, GMAC Financial Services.
A valuation allowance is taken when the future benefit of the deferred tax assets is less likely to be realized.
The net loss amounted to $68.85 per share, compared with a net loss of $147 million, or 26 cents per share, in the third quarter of last year.
The results included a $3.5 billion after-tax gain on the $5.4 billion sale of Allison Transmission in August.
Without special items, the company reported a $1.6 billion loss, or $2.80 per share.
The company reported record third-quarter automotive revenue of $43.1 billion and record global sales for the quarter of 2.39 million cars and trucks.
"We continue to implement the key elements of our North America turnaround strategy, and these initiatives are driving steady improvement in our financial results, despite challenging North America market conditions," GM Chairman and Chief Executive Rick Wagoner said in a statement.
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Any man who says he is an American, but something else also, isn't an American at all. We have room for but one flag, the American flag... We have room for but one language here, and that is the English language... and we have room for but one sole loyalty and that is a loyalty to the American people." Theodore Roosevelt 1907
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