General Motors Co. Chief Financial Officer Chris Liddell said the biggest U.S. automaker may be profitable in 2010, ending five years of annual losses.
The company needs to be profitable to undertake an initial public offering, which is still possible in the second half, said Liddell. A stock offering requires health in the company's auto sales and in the financial market, Liddell said, adding that he's "encouraged" about the IPO path.
"There is a high sense of urgency and accountability at a high level," Liddell said at a media roundtable at GM's headquarters in Detroit.
An IPO will help pay back the U.S. government after a $50 billion bailout of the company left taxpayers with a 61 percent equity stake. The automaker plans to repay about $5.7 billion in remaining debt by June as it relies on sales of Chevrolet, Buick, GMC and Cadillac brands.
The company last posted an annual profit in 2004, ringing up $88 billion in losses from 2005 through last year's first quarter. On Nov. 16, GM said its third-quarter loss after leaving bankruptcy protection on July 10 was $1.15 billion. Fourth-quarter 2009 results are due by March 31.
Liddell said the company is making money in China and Brazil and benefiting from an improving U.S. economy and auto sales.
"We have a reasonable chance of being profitable this year," Liddell said. He also said "I'm encouraged by the path" toward an IPO.
Return to Profit
GM's U.S. vehicle sales have risen 13 percent so far this year, according to industry researcher Autodata Corp. of Woodcliff Lake, New Jersey. Deliveries increased for all four brands it is keeping: Buick, 46 percent; Chevrolet, 35 percent; GMC, 20 percent; and Cadillac, 14 percent. Saab was sold to Spyker Cars NV; Pontiac, Saturn and Hummer are being wound down.
The company is still struggling in Europe, Liddell said.
