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Microcap & Penny Stocks : Rat dog micro-cap picks...
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To: tsigprofit who wrote (10164)1/9/2003 1:25:19 PM
From: Bucky Katt  Read Replies (1) of 48461
 
GM said today its pension costs will triple to $3 billion this year because assets in the fund, hammered by three years of stock market declines, fell short of anticipated obligations by $19.3 billion in 2002.



GM, the world's largest automaker, also said it is cutting the projected rate of return on its pension fund to 9 percent annually from 10 percent in 2002.

The company said it expects earnings to fall 26 percent this year, roughly in line with Wall Street forecasts.

The move by GM, which has the largest private U.S. pension fund, had been expected. Analysts have said many companies are likely to follow suit, depressing earnings across corporate America this year.

"We do have a substantial pension drag on both earnings and cash flow," GM Chief Financial Officer John Devine said in a meeting with Wall Street analysts.

"We'll eventually get through this," he said, adding that GM will step up its cost-cutting efforts in the face of the auto industry's "continued intense pricing environment" this year.

GM shares were up 2.6 percent in midday New York Stock Exchange trade after a 4.1 percent decline on Wednesday.

The company said expenses before taxes from its underfunded pension plan will rise to about $3 billion in 2003 from $1 billion last year.
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