GM delays fourth quarter results
Accounting and tax errors delay car maker's report
The world’s largest auto manufacturer,
General Motors, is to delay reporting its
2006 financial results due to accounting errors and other
issues.
The company stated today that it found tax accounting mistakes dating back to
before 2002, which will end up increasing its retained earnings for subsequent
years of between $450m and $600m.
GM’s CFO, Fritz Henderson, said the
company is not yet able to state the size of its expected fourth-quarter profit.
GM reported losing $3bn through the first three quarters of last year and
$10.6bn in 2005.
The company is also probing other accounting problems involving hedging
activities.
Before GM’s announcement, the company’s shares rose 40 cents, or 1.2 percent,
to close at $33.14 on the New York Stock Exchange.
The shares, which have traded in a 52-week range of $19 to $36.56, fell 19
cents in after-hours trading.
Further reading:
GM
delays 4Q report, cites accounting errors
GM boss promises to strengthen internal accounting
GM to report ‘rectified’ accounts