Saturday, November 14, 2009

GM to release its first earnings statement since emerging from bankruptcy

All eyes will be on General Motors Co. on Nov. 16 as it releases its first earnings statement since it emerged from bankruptcy on July 10. GM spent exactly 39 days in federal bankruptcy protection. GM has been operating on $50 billion in government loans.

At the press briefing on Nov. 5, CEO Fritz Henderson said GM was on track to out perform the targets it had set in its viability plan submitted to the U.S. Treasury in April.

Henderson didn’t give out any specific information but on a positive note, he did say that the situation is more stable than what the outlook was even just two months ago. The third-quarter financial statement will reflect the cash derived from the Cash-for-Clunkers program.

Before filing for U.S. bankruptcy protection in June, GM presented a viability plan to the government. The plan had assumed GM would have a 19.5% US share in 2009, with that share stabilizing in the 18.4 to 18.9 percent range in the succeeding years.

GM’s announcement of its third-quarter earnings will be made at 7 a.m. eastern time on Nov. 16.