GM loses another $6 billion

NEW YORK (CNNMoney.com) – General Motors’ financial woes continue as the automaker teetering on the edge of bankruptcy reported a $6 billion loss during the first three months of the year Thursday.
Excluding special items, GM reported a loss of $5.9 billion, or $9.66 a share. That’s far worse than the 62 cents a share it lost in the year ago period. But it was a smaller than the $11.05 per share loss forecast by analysts surveyed by Thomson Reuters.
Revenue fell 47% in the quarter to $22.4 billion due to a global slump in auto sales. But revenue was also better than forecasts. Analysts were expecting revenue of $20.2 billion.
GM (GM, Fortune 500) burned through $10.3 billion in cash in the quarter, leaving it with only $11.6 billion in cash on hand at the end of the period. The company says it needs between $11 billion and $14 billion on hand to continue normal operations.
Since the end of the quarter, the federal government has loaned GM another $2 billion, bringing total federal assistance to $15.4 billion.
But the Treasury Department has given GM only until the end of this month to come up with an agreement with creditors, unions and dealers that would cut its costs and debt enough to be viable for the long-term. If it fails to reach those agreements, GM is expected to follow rival Chrysler LLC into bankruptcy.

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