General Motors Corp. on Wednesday posted a net loss of 39 billion U.S. dollars for the third quarter of 2007, compared with a reported net loss of 147 million dollars for the same period a year ago.
The huge third-quarter loss resulted mainly from a write down of tax credits that the world's biggest automaker said it had to remove from its books under accounting rules.
But even excluding special items, the company had a 2007 third-quarter adjusted net loss of 1.6 billion dollars, compared to a net income of 497 million dollars in the same period of last year.
The variance was driven primarily by a significant decline in net income at GMAC, as well as increased corporate expenses related to legacy cost, foreign exchange and various 2006 tax benefits, partially offset by improved performance in automotive operations.
GMAC is the automaker's former finance arm in which it still holds a stake.
In the first half of this year, GM recorded a net profit of 953million dollars after losing more than 12 billion dollars in 2005 and 2006.
"We continue to implement the key elements of our North America turnaround strategy, and these initiatives are driving steady improvement in our financial results, despite challenging North America market conditions," said Rick Wagoner, GM chairman and chief executive, in a statement.
"In addition, we are very encouraged by our performance in emerging markets," Wagoner said, "Our record third-quarter global sales are strong evidence that our commitment to great cars and trucks is being embraced by consumers around the globe."
Source:Xinhua
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