Holden loses $70m in 2008

[Reaper]

Holden loses $70m in 2008


Costs related to Family II engine plant closure see GM Holden lose $70m in 2008

GM HOLDEN this evening posted a $70.2 million operating loss for its financial year ending on December 31, 2008.

The better-than-expected result came in the same week that Toyota Australia announced a $123.4 million profit for its fiscal year ending on March 31, and following the record $274.4 million loss revealed by Ford Australia a week ago.

Holden stressed that it would have made a small after-tax profit of $6.6 million except for special, one-off charges that amounted to $76.8 million and related mainly to the upcoming closure of its Family II engine plant closure.

In addition, Holden said it made top-up contributions of $50.3 million to its Defined Benefits Scheme as the world financial markets began to deteriorate.

Reduced sales volumes saw total revenue drop from $6.1 billion in 2007 to $5.8 billion last year, which chairman and managing director Mark Reuss described as “disappointing, because the organisation was well placed to make a healthy profit in Australia before world markets fell in the third quarter of 2008”.

Holden - Holden loses $70m in 2008 - News

[STEALTHY™]

Awesome reporting skills.


Holden loses $80mil (implying they made a loss) when infact they just made less profit on previous years.


If its that easy, maybe i should become a journo

[Reaper]

Lol - the whole profit/loss thing is very different to their cash position. From the whispers I have heard, their cash position is very strong. Much of this "loss" is non-cash writedowns of assets in their Family II plant - such as equipment that was paid for decades ago but still had a substantial book value. Now that the plant is closing they have the opportunity to write it all off. Great for their tax position - by rights, no company wants to make too much profit - it just goes to govco.

Reaper

[immortality]

yeah, thats a losss on paper only. good tax write-off. my old company did that one year

[holden boy]

perfect timing to cause now is the time to be able to do it and no one will look hard at it and give a shit