Aloha Air creditor GMAC had tough quarter
NEW YORK » GMAC LLC
said yesterday its first-quarter loss widened as its automotive finance business weakened -- though results improved slightly in its struggling mortgage operations.
GMAC, whose commercial finance unit is the main lender to bankrupt Aloha Airlines, is majority owned by private equity firm Cerberus Capital Management.
General Motors Corp. owns a minority stake in the financial services firm, though GMAC's mortgage difficulties of late have weighed on GM's results.
GMAC lost $589 million during the first quarter of 2008, compared with a loss of $305 million during the same period the previous year.
The automotive finance division earned $258 million during the first quarter, a 35 percent decline from the year-ago period.
GMAC cited weaker credit performance, including rising credit loss provisions and rising costs tied to restructuring operations.
Losses in its mortgage lending division, ResCap, still accounted for the overall loss during the first quarter.
ResCap lost $859 million during the first quarter, an improvement from the $910 million lost during the year-ago period.
ResCap lost $682.5 million on the sale of international mortgage loans during the quarter.