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US-based GMAC Financial Services this week reported a US$724 million ($811 million) net loss for the fourth quarter, bringing its 2007 net loss to US$2.3 billion ($2.6 billion).
This compares to a net income of $2.1 billion ($2.4 billion) in 2006.
The group said effects from continued disruption in the mortgage, housing and capital markets on ResCap – its residential mortgage business – were the primary drivers of the adverse performance.
“As a result [of those disruptions] 2007 was a year of significant transformation for the organisation,” GMAC chief executive officer Eric Feldstein said.
Throughout the year the group had concentrated on implementing aggressive actions to reduce risk, streamline operations and rationalise the group’s cost structure, Mr Feldstein said, expressing confidence in a profitable 2008.
“We believe the steps taken position the company for future success,” he said.
Published: 07-02-08
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