Reply #4: Tough N. America market to hurt GM earns in Q1, FY05 [View All]

[UpInArms]

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38427.3193646991-833206398&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- General Motors (GM) lowered its earnings outlook for the first quarter and full year Wednesday to reflect weak sales and production volumes in North America, a tougher pricing environment and a more car-based sales mix. The Dow component now sees a loss before items of about $1.50 per share in the first quarter, well below its prior target of breakeven results or better. For the full year, the world's largest car maker now anticipates earnings before items of $1 to $2 per share, short of a previous view for a profit of $4 to $5 per share. The company also forecast negative operating cash flow of about $2 billion in 2005, before the effects of the Fiat settlement and GM Europe's restructuring. Its previous target was positive cash flow of $2 billion for the year. The stock closed Tuesday at $33.72, down 1.8 percent.

7:34am 03/16/05 GM CUTS NA VEHICLE PRODUCTION EST TO 1.18M FROM 1.25M