GM's perfect storm

For General Motors, the hits keep coming. Unfortunately for the troubled automaker, they're not the kind of hits that bring buyers into showrooms or keep cars rolling out of them. Instead, the world's biggest automaker is getting hit by bad news - seemingly from all directions. The problems include gasoline prices, issues at its former parts unit, Delphi, accounting questions, health care and pension costs. Together it all adds up to a perfect storm for the automaker, battering its financial results, its debt rating and stock, which hit an 18-year low Wednesday.

GM has lost a stunning $2.2 billion in the first three quarters of this year, excluding special items. Company executives, including embattled CEO Rick Wagoner, won't say when they expect the automaker to return to profitability.

Investors have taken note. The stock has tumbled some 40 percent since July. The three-month drop in GM stock has shrunk its market worth to about $12 billion, far less than the $19 billion in cash on its balance sheet. And its 9 percent dividend yield may seem tempting but is also a sign investors believe GM won't be able to keep paying $2 a year to shareholders much longer.

Google Base :
american auto-makers

(2005-11-18 13:32:23 SGT) [Biz] Permalink

Comments:

Post a Comment:

Comments are closed for this entry.

« Blood Vessels Grown... | Main | Exxon, and the Impli... »

Most popular blog postings on lowem.log :

1. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
4. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
5. Live spot gold price quotes chart on COMEX
6. 2010 Honda Civic Hybrid preliminary specifications released
7. Fuel prices seen stoking Malaysia inflation in 2008
8. How to insert currency exchange rates into Google Spreadsheets

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
4. 67000 China factories closed in H1 2008 as global economic collapse takes hold
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004