General Motors Corp. posted on Tuesday the largest annual loss of 38.7 billion U.S. dollars in 2007 largely due to the third quarter non-cash 38.3 billion dollar special charge related to the valuation allowance against deferred tax assets.
GM, the world largest automaker, also posted a fourth-quarter loss of 722 million dollars, compared to net income of 950 million dollars in the year-ago period.
GM reported revenue of 47.1 billion dollars in the fourth quarter versus 50.8 billion dollars in the year ago period, with the decline more than accounted for by the exclusion of GMAC revenue starting Dec. 1, 2006.
Revenue from automotive operations totaled 46.7 billion dollars in the quarter, a 3 billion dollar increase over the prior year and a new quarterly revenue record, reflecting strong growth in Latin America, Asia Pacific and Eastern Europe.
In total, GM generated 181 billion dollars in revenue in 2007, down from 206 billion dollars in 2006. The decrease versus last year is due to the non-consolidation of GMAC revenue, following GM's sale of 51 percent of GMAC in November of 2006.
Its core automotive business generated record revenue of 178 billion dollars in 2007, a 7 billion dollar improvement over 2006,aided by explosive growth in emerging markets and favorable foreign exchange against a weaker U.S. dollar.
"2007 was another year of important progress for GM, as we implemented further significant structural cost reductions in North America, grew aggressively in emerging markets, negotiated a historic labor contract with our UAW partners in the U.S., advanced development of a broad range of advanced propulsion technologies and most importantly, introduced a series of breakthrough cars and trucks around the world," said GM Chairman and CEO Rick Wagoner
"But we have more work to do to achieve acceptable profitability and positive cash flow," he added.