General Motors posted Friday a 15.5 billion dollar net loss in the second quarter, citing hefty restructuring charges, plummeting US auto sales and union strikes. The loss per share excluding special items was 11.21 dollars, nearly four times the market expectations of a 2.63 dollar loss, compared with earnings per share of 2.30 dollars a year ago.
The massive quarterly net loss by the giant automaker compared with a net profit of 891 million dollars in the same period in 2007. The loss included 9.1 billion dollars in charges for mostly non-cash special items. Two weeks ago GM warned that it anticipated a significant second-quarter loss because of the special charges associated with its vast restructuring program and workforce reductions aimed at battling a steep downturn in the US auto market.
A slowing US economy roiled by the worst housing market slump in decades and financial turmoil, as well as soaring gasoline prices, have slashed sales of fuel-guzzling large trucks and sport utility vehicles (SUVs), the mainstay of GM's domestic sales, in recent months. Revenue for the second quarter was 38.2 billion dollars, down from 46.7 billion in the year-ago quarter, mainly due to falling sales in the GM North America (GMNA) division.
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