Ouch! $15.5 billion loss for GM in Q2 2008 – rpmGo.com

General Motors Corp. recorded a stunning $15.5 billion second-quarter net loss, slammed by sinking auto sales, money lost on bad lease deals and costs tied to its North American restructuring.

The loss equates to $27.33 per share for the second quarter – including all the one-off charges and special items – compared with net income from continuing operations of $784 million or $1.37 per share in the second quarter of 2007. Ignoring these, GM posted a net loss of $6.3 billion or $11.21 per share. This is in stark contrast to a net income from continuing operations of $1.3 billion or $2.29 per share in the same period last year.

Revenue for the second quarter was $38.2 billion, down from $46.7 billion in the year-ago quarter. However, combined revenues for regions outside North America were up more than $1.7 billion over the same period in 2007, registering at $20.8 billion.

“The second quarter this year has been one of the fastest-changing markets I have ever seen,” GM Chief Financial Officer Ray Young told reporters. “We’re going to get this quarter behind us and move ahead”. GM already announced a major restructuring plan, including closing four truck plants, shift reductions at two truck plants, the addition of shifts at two car plants, a new Chevrolet global small car program and next generation Chevrolet Aveo compact car, introduction of a high-efficiency four-cylinder engine, salary worker job cuts, suspension of dividends, reductions in sales and marketing budgets, a strategic review of the Hummer brand and production funding approval for the Chevrolet Volt plug-in hybrid vehicle.

Post tags: Tags: financial, General Motors, gm