Strike pushing GM to consider deeper job cuts:
"GM says company looking for ways to cut spending"
DETROIT, July 14 (Reuters) - General Motors Corp.
Chairman Jack Smith said on Tuesday the automaker will look for
opportunities to cut its cash use because of mounting losses
related to two ongoing United Auto Workers strikes.
GM said its second quarter earnings were cut by $1.2
billion, or $1.79 a share, because of strikes at two parts
plants in Flint, Mich. Its earnings for the period were reduced
to $389 million, or $0.54 a share, compared with $2.0 billion,
or $2.62 a share, adjusted to excludes results from Hughes
defense operations GM sold last year.
In saying GM needs to cut spending, Smith alluded to the
company dropping slower-selling vehicles and closing assembly
plants.
"In order to protect key product programs, such as our new
generation of full-size pickups, we are taking a close look at
our spending priorities," Smith said in a press release. "We
continue to examine all opportunities to reduce cash
consumption, and we are carefully reviewing future spending for
marginal products and facilities."
Smith also said the company's stock repurchase program
would be suspended until the strike's end. GM spent $1 billion
to repurchase more than 14 million shares of its stock in the
second quarter. |
