GM "stretch" goal $11/shr in '99 - analyst
DETROIT, Jan 29 (Reuters) - Morgan Stanley analyst Stephen
Girsky said Friday that executives at General Motors Corp., the
world's No. 1 automaker, have a 1999 "stretch" earnings target
of $10 to $11 per share, far above Wall Street estimates of
$8.62.
GM management briefed analysts at meeting in Detroit late
Thursday and again on Friday. GM executives said previously
that stretch targets reflected what the company could achieve
if all its plans went as scheduled.
In North America alone, GM has an earnings "stretch" target
of $4 billion in 1999, up from actual earnings of $1.7 billion
in 1998, Girsky said in a research report.
Executives told analysts that the company could double its
profits in Europe to around $900 million in 1999 from $463
million in 1998 and minimize its losses in the Asia/Pacific and
Latin American regions, Girsky said.
A GM spokeswoman declined to comment on the analyst meeting
or the earnings targets.
"Management communicated a sense of urgency within the
organization to cut costs, boost productivity, quality and
customer satisfaction," Girsky said.
GM management expects to launch a new product in North
America every 28 days over the next few years and sees cost
savings in purchasing, engineering, capital and overhead.
According to First Call, analysts on average expect
earnings of $8.62 per share for 1999 and $9.84 in 2000.
GM's shares were down 2/16 at 91-15/16 on the New York
Stock Exchange in early afternoon trading.
((Detroit newsroom, 313-870-0200))
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