GM Posts $3.3B Loss on Weak US Market, Strikes

By Kevin Spak,  Newser Staff
Posted Apr 30, 2008 7:16 AM CDT
The new Buick Invicta is on display during the GM Premiere, part of the 2008 Beijing Auto Show in Beijing Saturday, April 19, 2008.    (AP Photo/Oded Balilty)
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(Newser) – General Motors today posted a $3.3 billion first-quarter loss, AP reports, due in part to a weak US market, a strike at a major supplier, and plummeting sales of sport utility vehicles and pickups. The loss amounted to $5.74 per share, including 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., affecting 30 plants, has cost it $800 million. GM's loss included a $1.45 billion charge to reflect a change in the value of  the company'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.