GM reports 1Q loss of $3.3 billion due to weak US market, parts supplier strike, charges
By DEE-ANN DURBIN | Associated Press | Apr 30, 08 6:38 AM CDT in
Business
General Motors Corp. struggled to a $3.3 billion first-quarter loss, due in part to a weak U.S. market, a strike at a major supplier and plummeting sales of sport utility vehicles and pickups.
The loss reported Wednesday for the January-March period amounted to $5.74 per share and also reflected one-time charges. Without the charges, it appeared GM's adjusted results beat Wall Street expectations.
GM said a two-month strike at American Axle and Manufacturing Holdings Inc. has cost it $800 million and 100,000 vehicles. The strike has affected 30 GM plants.
GM's loss included a $1.45 billion charge to reflect a change in the value of GM's interest in GMAC Financial Services and $731 million to increase GM's liability in Delphi Corp.'s ongoing bankruptcy.
Excluding the one-time items, GM lost $350 million, or 62 cents per share. Analysts surveyed by Thomson Financial had expected a loss of $1.60 per share.
The automaker had earned $62 million, or 11 cents a share, a year ago.
GM's revenue slipped to $42.7 billion from $43.4 billion a year ago. GM said revenues were up 20 percent outside North America thanks to strong growth in China, Russia, Brazil and India, but were impacted by the slowdown in North America and losses at GMAC.
GM lost $276 million in the first quarter due to its minority stake in GMAC.
"We continue to leverage our global product portfolio to take advantage of tremendous growth in key emerging markets, while at the same time taking the appropriate actions to deal with the challenging economic conditions in the U.S.," GM Chairman and Chief Executive Officer Rick Wagoner said in a statement.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
DETROIT (AP) _ General Motors Corp. says it lost $3.3 billion in the first quarter as strong overseas growth was dragged down by a strike at supplier American Axle and Manufacturing Holdings Inc. and weak U.S. sales.
The loss reported Wednesday for the January-March period also reflected one-time charges. It was much larger than its loss of $42 million, or 7 cents per share, in the same quarter a year ago.
GM says the two-month strike at American Axle has cost it $800 million and 100,000 vehicles. The strike has affected 30 GM plants.
GM's loss included a $1.45 billion charge to reflect a change in the value of GM's interest in GMAC Financial Services and $731 million to increase GM's liability in Delphi Corp.'s ongoing bankruptcy.
(This version CORRECTS year-ago figures to a net profit sted loss)
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