General Motors has announced that they made a loss of 40bln USD in 2007.
Is this the end of GM, or just a book keeping trick to justify the job cuts?
Do You Care About 40,000,000,000?
- Schorsch
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Do You Care About 40,000,000,000?
Publicly, we say one thing... Actually, we do another.
- Ancient Mariner
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Re: Do You Care About 40,000,000,000?
With their present range of "cars", no trick.
Per
Per
- Half Bottle
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Re: Do You Care About 40,000,000,000?
GM shares were up yesterday.GM's annual loss of $38.7 billion largely was due to a third-quarter charge related to unused tax credits.
Excluding the tax charge and other special items, GM lost $23 million, or 4 cents per share, for the year, compared with a net income of $2.2 billion in 2006, beating Wall Street's expectations. Analysts polled by Thomson Financial expected GM to post a full-year loss of 95 cents per share.
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Re: Do You Care About 40,000,000,000?
GM has been on a downward path for 30 years, with its market share in the US falling from around 50% to 15%. The "end" of the company may or may not be at hand, but it's all about managing decline right now. The $40bn loss was expected, but it's a meaningless figure : $38bn of that was a "paper" loss from writing off tax credits that the company decided it could never use - it's not actually money "lost".
- Schorsch
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Re: Do You Care About 40,000,000,000?
Maybe you know:GM has been on a downward path for 30 years, with its market share in the US falling from around 50% to 15%. The "end" of the company may or may not be at hand, but it's all about managing decline right now. The $40bn loss was expected, but it's a meaningless figure : $38bn of that was a "paper" loss from writing off tax credits that the company decided it could never use - it's not actually money "lost".
Does the company has a positive cash-flow?
Did they actually (not technically) earn money?
Publicly, we say one thing... Actually, we do another.
- Half Bottle
- Posts: 2012
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Re: Do You Care About 40,000,000,000?
I don't know about thier cash flow, but the answer to your second question is right in the AP quote I excerpted: "Excluding the tax charge and other special items, GM lost $23 million, or 4 cents per share, for the year, compared with a net income of $2.2 billion in 2006."Maybe you know:GM has been on a downward path for 30 years, with its market share in the US falling from around 50% to 15%. The "end" of the company may or may not be at hand, but it's all about managing decline right now. The $40bn loss was expected, but it's a meaningless figure : $38bn of that was a "paper" loss from writing off tax credits that the company decided it could never use - it's not actually money "lost".
Does the company has a positive cash-flow?
Did they actually (not technically) earn money?
Also of note, GM reported profits (net of special items) in all regions in which they operate, except North America, where they lost (I think) about $1.5 billion.
~~~ In Oxford Town, you smell like dead lab rats. ~~~
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Re: Do You Care About 40,000,000,000?
I don't know without checking. Even if they "actually" "earned" money, this is not necessarily indicative of cash flow. And you can have operational cash flow, which tells you certain things, as well as operational cash flow plus investment and capital movements. I suspect - wild guess only - that they did have a small operational net positive cash flow in 2007 but after severance payments, pension/health payments and other firefighting activities probably not bottom line cash flow. But as I say that's a guess only.Maybe you know:
Does the company has a positive cash-flow?
Did they actually (not technically) earn money?
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