Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (45263)	1/26/2006 10:36:37 AM
From: Jim McMannis	Read Replies (4) \| Respond to of 116555

Kirk should have waited? GM net loss $4.8 billion, much worse than expected 20 minutes ago DETROIT (Reuters) - General Motors Corp. (NYSE:GM - news) posted a fourth-quarter net loss of $4.8 billion on Thursday, much worse than Wall Street had expected, amid high costs, shrinking market share and sluggish sales of sport utility vehicles. It was the fifth straight quarterly loss for the world's largest automaker and brought its losses for all of 2005 to $8.6 billion. "The numbers are much worse than I thought they would be, especially given how Ford beat the estimates earlier this week," Argus Research analyst Kevin Tynan said. On Monday, Ford Motor Co. (NYSE:F - news) reported a surprising 19 percent rise in fourth-quarter earnings. GM shares dropped 80 cents, or 3.35 percent, to $23.05 in early trading on the New York Stock Exchange. The company's 8.375 percent bonds due in 2033 were quoted at 72.5 cents on the dollar, down 0.5 cent, according to MarketAxess. The earnings report came a day after news that billionaire investor Kirk Kerkorian had raised his stake in GM to 9.9 percent. Kerkorian has called for sweeping changes at the auto giant, and a key adviser has suggested he might be prepared to organize a fight for control of the GM board. GM's fourth-quarter loss amounted to $8.45 a share, compared with a year-earlier loss of $99 million, or 18 cents a share. Excluding one-time items, the company posted a loss of $1.2 billion, or $2.09 a share. On that basis, analysts' average forecast was a loss of 12 cents a share, according to Reuters Estimates. One-time items reduced earnings by $3.6 billion, or $6.36 a share. They included a restructuring charge of $1.3 billion at GM's North American operations, and a preliminary after-tax charge of $2.3 billion related to a benefit guarantee with the United Auto Workers union and bankrupt auto parts supplier Delphi Corp. (Other OTC:DPHIQ - news). Analysts were expecting charges after GM in October announced plans to slash 30,000 jobs and shutter 12 facilities, but no one knew how large the charges would be. Fourth-quarter revenue fell to $51.2 billion from $51.4 billion a year earlier. "It was a year in which two significant fundamental weaknesses in our North American operations were fully exposed -- our huge legacy cost burden and our inability to adjust structural costs in line with falling revenue," Chief Executive Rick Wagoner said in a statement. GM earlier this month said it expects to cut North American structural costs by $6 billion by the end of 2006. GM said its automotive operations lost $1.5 billion in the fourth quarter, driven by large losses in North America, where it has been losing market share to foreign rivals such as Toyota Motor Corp. (7203.T). General Motors Acceptance Corp., the company's finance unit, posted net income of $614 million, down from $683 million a year earlier. The automaker plans to sell a controlling stake in its finance arm in order to restore the unit's investment-grade ratings. Both GM and GMAC have said talks with potential partners are "ongoing."

To: mishedlo who wrote (45263)	1/26/2006 2:03:40 PM
From: shades	Read Replies (3) \| Respond to of 116555

DJ GM CFO Expects Capital Spending To Be Flat In 2006 . By John D. Stoll Of DOW JONES NEWSWIRES DETROIT (Dow Jones)--General Motors Corp. (GM) Chief Financial Officer Fritz Henderson said Thursday the company expects capital expenditure levels to be about flat in 2006 with the approximately $8 billion spent last year. "It will be in the 2005 range," Henderson said in a conference call with investors and analysts. He pointed to GM's emphasis on launching critical GMT-900 large SUVs and pickups and other vehicles throughout the world as big spending drivers. He described the expected 2006 spending level as "healthy" and said a decline in spending vs. 2005 is not likely. In 2005, GM's capital spending increased roughly $1 billion from the $7 billion spent in 2004, GM spokeswoman Toni Simonetti said. In addition to launching new trucks and SUVs, the auto maker is rolling out a new Corsa small car in Europe, which Henderson said is "critical" to the auto maker's ongoing efforts to mount a comeback in the region. While Henderson is bullish on GM posting a better financial performance in 2006 and 2007, he said three major factors are holding the company back from furnishing concrete earnings guidance going forward. Ongoing talks with bankrupt supplier Delphi Corp. (DPHIQ), timing on when benefits from United Auto Worker union health care concessions kick in, and the fate of its quest to sell a majority stake in General Motors Acceptance Corp. are leading issues contributing to uncertainty.