GM Loss Widens To $3.2 Billion

General Motors reported July 26 a second-quarter loss of $3.2 billion as the company took a $4.3 billion charge for reorganizing its North American operations.

Despite the big deficit, the results were better than expected for the world's biggest automaker, which is trying to shift gears in a rapidly changing market. Taking out the one-time charges, GM reported an operating profit of $1.2 billin, well above most Wall Street estimates.

Revenues also were much stronger than expected at $54.39 billion, up from $48.46 billion in the same period last year. "It's rewarding to see our automotive business return to profitability on an operating basis and a clear sign that we're on the right track, but there is more work to be done," said Rick Wagoner, GM chairman and CEO.

Copyright Agence France-Presse, 2006

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