GM Plunges Into $1bn Quarterly Loss

[chlamor]

GM plunges into $1bn quarterly loss

David Teather in New York
Wednesday April 20, 2005
The Guardian

The sense of crisis surrounding General Motors was heightened yesterday when the company reported a loss of $1.1bn (£580m) in the first three months of the year.

The Detroit firm blamed a slump in North American sales and the failure to grapple with the soaring cost of providing healthcare to its US workforce. The loss compared to a profit of $1.2bn last year.

<snip>

GM had warned in March that it would fall into the red during the first quarter but the actual loss was at the top end of Wall Street's expectations. Shares in the company were trading 2.1% lower in mid-day trade at $25.65.

The company said it would not provide any further guidance on full-year earnings after warning last month they would be about 75% lower than previous forecasts. Hi­manshu Patel, an analyst with JP Morgan, said in a note that the lack of additional guidance "will alarm some". Group sales declined 4.3% to $45.8bn.

http://www.guardian.co.uk/business/story/0,3604,1463897,00.html

[Massacure]

1. GM is toast.

[leesa]

2. But, they, unlike we, can file for bankruptcy and start fresh.

Maybe next time they'll sell a product that people outside of the US actually want.

[chlamor]

4. How about GM

retool and get their asses to reinstall the public rail system they dismantled. Retrain the work force and get busy with light rail.

[cliss]

13. And guess what's the 1st thing they'll do:

GM will reorganize, and they will unload their pension obligations. Anybody who has worked for General Motors better start making alternate plans. Cuz there won't be a retirement plan after they reorganize.

They'll leave hundreds of thousands without any safety net in their old age.

[DrDebug]

14. $1 billion is peanuts.

The following companies are still around despite losses > $10,000,000,000

#1
AOL Posts a $98.7 Billion Loss On New Goodwill Write-Down MARTIN ...
http://www.mindfully.org/Industry/2003/AOL-$98_7-Billion-Loss30jan03.htm

And #2!
AOL logs $54.2 billion loss - Apr. 24, 2002
http://money.cnn.com/2002/04/24/technology/aol/

#3
CRN | Deutsche Telekom Posts $27 Billion
http://www.crn.com/sections/breakingnews/dailyarchives.jhtml?articleId=18838962

#4
France Telecom Reports $21 Billion Loss
http://www.convergedigest.com/Bandwidth/newnetworksarticle.asp?ID=6641

#5
Nortel Warns Of US$19 Billion Loss, Apple ...
http://www.themacobserver.com/stockwatch/2001/06/15.1.shtml

#6
Viacom Posts $18.4 Billion Loss (Q4)
http://billboardradiomonitor.com/radiomonitor/search/article_display.jsp?schema=&vnu_content_id=1000817386

#7
Business: AT&T posts $12.7-billion loss for second quarter
http://www.sptimes.com/2002/07/24/Business/ATT_posts_127_billion.shtml

#8
Online NewsHour: Vivendi Reports $12.1 Billion Loss -- August 14, 2002
http://www.pbs.org/newshour/media/media_watch/july-dec02/vivendi_8-14.html

#9
10.2 billion Loss for mmO2
http://www.3gnewsroom.com/3g_news/may_03/news_3414.shtml

[Renew Deal]

3. 1 billion quarterly loss?

How the hell does that even happen? What are they doing there?

[Tandalayo_Scheisskopf]

5. A big bunch is...

Health Insurance Costs.

[Fire Walk With Me]

6. Hopefully the next step won't be corporations lobbying for elimination

of health care benefits, or their reduction.

The march toward cheap labor...

[Tandalayo_Scheisskopf]

11. It is surprising...

The number of executives of major corporations who have spoken to the issue of medical and insurance costs. It doesn't get a lot of media play.

[notadmblnd]

8. my guess is that they're topheavy with execs sucking

all the profits right into their pockets.

[notadmblnd]

7. did these fools really think that their customer base would

become the Koreans, Chinese and Mexicans? Fools, idiots imbecils and incompetents.

[OKthatsIT]

10. and do ya think Washington gives a rats ass?

....dont hold your breath. Course, we will pay out the wahzoo in corporate welfare...keep those gasguzzlers on the road.

[delete_bush]

9. and just how are they going to compete

when, in 2007, China begins selling vehicles in the U.S. for 30% less than the competition?

[bpilgrim]

12. did hitler have healthcare to its workforce? EUREKA!

COMPETITIVE!!!

they won't dare mention OIL PRICES nor their BIG losers SUV and TRUCKS first, ever.

peace

[GetTheRightVote]

15. Congress is to have an emergency session due to GM problems

This is the rumor I have heard from a friend so we will see in the near future if this is in fact true ......

:kick:

[Fire Walk With Me]

16. "We can't stay in business if we pay health insurance"

Or hire Americans.

These things impede our top-level self-administered bonus plans.

[bleedingheart]

17. This is the fault of their incompetent management.