General Motors Corporation said today that its fourth-quarter net loss mushroomed to $4.8 billion as it struggled with high costs, shrinking market share and sluggish sales of sport utility vehicles.
The world's largest carmaker said the loss amounted to $8.45 a share, compared with a year-earlier loss of $99m, or 18 cents a share. Excluding one-time items, the company lost of $1.2 billion, or $2.09 a share. One-time items reduced earnings by $3.6 billion, or $6.36 a share.
They included a restructuring charge of $1.3 billion at GM's North American operations, and a preliminary after-tax charge of $2.3 billion related to a benefit guarantee with the United Auto Workers union and bankrupt auto parts supplier Delphi Corporation.
Analysts were expecting charges after GM in October announced plans to slash 30,000 jobs and shutter 12 facilities, but no one knew how large the charges would be.
Fourth-quarter revenue fell to $51.2 billion from $51.4 billion a year earlier. The fourth-quarter loss brought GM's net loss for the full year to $8.6 billion.
The carmaker has been facing high labour and raw materials costs, loss of market share to foreign rivals, and disappointing sales of high-profit SUVs.
GM has seen its debt rating cut to below 'junk' status several times in the past year, by agencies such as Moody's and Standard & Poor's. The company plans to sell a controlling stake in its finance arm, GMAC, in order to restore the unit's investment-grade ratings.
