General Motors reported its second quarter earnings this morning, and the news was predictably grim. The General lost $15.5B in the quarter, as the Detroit Automaker continues to struggle with brutal market conditions and the costs associated with strikes and downsizing. Among the losses is a $4B hit from automotive operations, as stymied truck sales resulted in an 18% drop in revenue to $38B. GM's credit arm lost another $2.5B from high loan default rates and huge losses from truck and SUV leas
If you pay attention to the Business section of the newspaper, then you're no doubt aware of how many public companies have been restating their earnings as of late. You can thank the Sarbanes-Oxley Act of 2002 for that, which was passed in the wake of accounting scandals at such companies as Enron, WorldCom and Tyco. General Motors has restated its earnings in the recent past, and in its annual 10-K report of results for 2006 revealed that its ability to effectively and accurately report its fi
One of the touted advantages of ethanol is benefiting the farmers who grow the fuel crops. Unfortunately, that has not proven to be the case for sugar farmers in the land Down Under. Apparently the CSR ethanol distillery, which processes the farmers' molasses into fuel, will only pay under certain circumstances. According to general manager Scott Perkins of Canegrowers, CSR's accounting practices are to blame for farmers not reaping that which they sow.
Earlier this year, Navistar delayed the filing of its annual report and blamed it on accounting errors by its auditor. Now, the truckmaker has stated that it will fire Deloitte and Touche and will retain the services of KPMG for its auditing needs. The relationship with Deloitte went back nearly a century.
The beating of the drums calling for the head of [General Motors'] Rick Wagoner continues to crescendo. The embattled chief executive has been stung by a growing chorus of critics in light of the company's recent financial restatement in which it disclosed that the company had lost a further 2 billion dollars. As a former chief financial officer, pundits argue that it is particularly disturbing that a company helmed by a money-man would have such issues.
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