Official financial results indicate that General Motors Co. lost $4.3 billion after it emerged from bankruptcy last year. The release of these statements brings the company a step closer to a stock offering.
In the last quarter of the year, GM revealed that it spent $1.9 billion in operating cash, partially due to repayments to governments that supported it during its restructuring. Including third-quarter results, GM generated $1 billion in 2009 cash after its bankruptcy.
In a statement, CFO Chris Liddell said that there remains some significant work to be done but that he thinks it has a chance of being profitable in 2010.
Since GM exited its US-sponsored bankruptcy on July 10, it has been working to establish its so-called fresh-start accounting for "New GM" to meet regulatory requirements.
This latest release from GM is actually the first official assessment of post-bankruptcy GM's financial condition.
The purpose of this fresh-start accounting, which is used when companies exit bankruptcy, is useful in helping the US government hit its goal of recouping the $50 billion it poured into GM's restructuring.
For the US government to be able to begin selling its 61% equity stake, GM has to have an initial public offering, which executives claim could arrive this year at the earliest.