G.M. Profit Down 90% From 2006 |
| New York Times - May 3, 2007 |
General Motors reported a 90 percent decline in first-quarter profit today as losses at its finance arm overshadowed gains from restructuring its automotive operations.
G.M., which fell behind Toyota Motor in the first quarter to become the world’s second-largest automaker, posted net income of $62 million, or 11 cents a share, compared with $602 million, or $1.06 a share, in the period a year earlier. It was the company’s second consecutive quarterly profit, but the number was weighed down heavily by losses from subprime mortgage loans made by the General Motors Acceptance Corporation.
G.M., which sold a majority stake in G.M.A.C. last fall to a group of investors led by Cerberus Capital Management, recognized a net loss of $115 million from G.M.A.C. — 49 percent of the unit’s $305 million loss — compared with earnings of $495 million in the quarter a year earlier.
Read Full Article from New York Times
- Posted: 2007-05-03 10:00:59
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