8:42AM General Motors (GM)
24.63:
It just keeps getting worse. Shares in General Motors, which reached a 13-year low on Wednesday, are trading lower in Europe after the automaker quadrupled its second quarter net loss to a whopping $1.07 bln. Adding fuel to fire, GM also announced that, because of accounting errors, it will restate 2001 earnings.
The loss in the second quarter was the fourth straight for the failing automaker, marking the longest losing streak in thirteen years. The revision arose after GM figured out that it overestimated the value of its 20.1% stake in Japanese carmaker Fuji Heavy Industries by 57%, according to an amended financial statement filed on Wednesday. In an additional filing, GM stated that its 2001 profits were overstated by as much as $400 mln.
The timing is of interest, as the news comes two weeks after the SEC issued subpoenas over concerns about how GM reports pension and other retiree benefits, along with accounting transactions with its suppliers. The Q2 loss went from $286 mln to $1.07 bln - a staggering figure after its stake in Fuji Heavy was pared down to $650 mln from an estimated $1.5 bln. On a per share basis that equates to a loss of $1.90 versus its previous figure of $0.51. The restatement did not change revenues or cash flow figures.
The 2001 restatement stems from credits GM received from suppliers. These are credits GM receives from suppliers in exchange for commitments for future sales, which were booked in 2001 but should have been booked in subsequent years. The credits should be booked over the life of the product cycle. Delphi, a former unit of GM, filed for bankruptcy protection last month. In March, the supplier said it inflated earnings after finding it booked rebates from suppliers in one lump sum, which again should have been spread over many years. GM said in April that it had properly accounted for transactions with Delphi.
The second quarter revision is water under the bridge, but the restatement and SEC probe will certainly reduce investor confidence in GM's financials. We see no catalysts for investors to steer anywhere near GM's shares, short of the board replacing CEO Rick Wagoner. Drastic times call for drastic measures. We think GM's best option is to call in the best man for the job, Carlos Ghosn. The Brazilian-born Frenchman, Ghosn, is the mastermind behind the revitalization of Renault and Nissan Motors. The latter automaker, once the pride of Japan, was on the brink of bankruptcy until "le cost-cutter" stepped in and, without even speaking Japanese, revived Nissan into one of the most profitable automakers in the world.
بزاوية story stock من بريفنق اليوم
ما عندي خبرة بهالسوالف , اقرأ عنها بالأخبار بس
ممكن تغيير بيانات مالية سابقة صار لها اكثر من 4 سنوات
أحتمال تلاعب سابق بالأرقام و الأرباح
بطلب من (أس اي سي) مطلوب شاهد من جنرال موتورز للمحكمة علشان يشرح كيف تصرف جنرال موتورز رواتب العمال و حقوق المتقاعدين و بعض الحوالات المالية مع مزودين جنرال موتورز . مثل ديلفي . ماكو ثقة
يقولون Carlos Ghosn فرنسي , ممكن ينقذ جنرال موتورز مثل ما أنقذ رينولت , و نيسان بالسابق
يبحثون عن شخصيات ممكن تحدث تغيير مثل ديلفي
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