General Motors tops expectations with a $6 billion loss in the first quarter

The earnings news isn't great for General Motors (NYSE: GM) this morning, but the company did manage to lose less money than expected. The struggling American automaker announced that it lost $6 billion during the quarter and spent $10.2 billion more cash than it received. Excluding items, GM lost $9.78 per share -- far greater than a year ago when the firm lost 67 cents per share.

Despite results being far worse than a year ago, GM managed to top expectations of a loss of $11.39 per share. GM's quarterly revenue dropped 47% to $22.4 billion from $42.4 billion a year ago.

[Update: GM will need another $2.6 billion in U.S. aid in May, CFO Ray Young said on a conference call.]

The automaker noted that the latest results show its continued global economic pressures along with low auto industry volumes worldwide. Industry sales slumped 21% in the first quarter, which led to reduced volume and revenue across the board.

While a smaller-than-expected loss is nice, a loss is a loss, and a nearly $10-per-share loss is huge. Furthermore, GM continues to stare down the barrel of a June 1 government deadline to either complete restructuring or go into bankruptcy protection.

The picture definitely isn't pretty for GM, but it is possible that the company can come up with an acceptable plan. Although, it seems that the government may have already made up its mind about GM's fate. Nevertheless, the company must shift gears and begin to offer consumers what they want, not what the company wants to make. Unfortunately, this isn't the business model GM has followed in the past, and it sure is hard to teach an old dog new tricks.

Get the latest on cars and trucks
from GM and all brands at AOL Autos.

Reader Comments (Page 3 of 3)

Symbol Lookup
IndexesChangePrice
DJIA-6.6612,496.15
NASDAQ+11.042,850.12
S&P 500+2.231,318.86

Last updated: May 23, 2012: 07:56 PM

Hot Stocks

General Electric

19.180.00(0.00)

Alcoa

8.61+0.12(+1.41)

Apple Inc

570.56+13.59(+2.44)

Google Inc 'A'

609.46+8.66(+1.44)

Bank of America

7.17+0.19(+2.72)

Wal-Mart Stores

64.58+0.85(+1.33)

Exxon Mobil Corp

82.04+0.09(+0.11)

Ford

10.41+0.22(+2.16)

Citigroup

27.15+0.23(+0.85)

IBM

196.12-0.70(-0.36)

Yahoo

15.38+0.09(+0.59)

Starbucks

55.29+1.92(+3.60)

Microsoft

29.11-0.65(-2.18)

Home Depot

48.74+0.48(+0.99)

Learn More About GM Cars

General Motors Brands:
Find Your Next Car

AOL Autos New Cars and Used Cars

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1337817414811 ms.