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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (514)	7/14/1998 10:17:00 PM
From: porcupine --''''>	Respond to of 1722

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.