GM Posts Adjusted 4Q Profit
Detroit auto giant General Motors (GM: 27.34, +0.22, +0.81%) said it made an adjusted profit in the fourth quarter and offered buyouts to all of the company's hourly union workers.
GM posted an adjusted profit of $46 million in the final period of 2007, or 8 cents a share, compared to a profit of $180 million, or 32 cents a share, a year earlier. Including special items from GM's balance sheet, the company said it lost $722 million, or $1.28 a share, which is lower than the $950 million, or $1.68 a share it earned a year ago.
Analysts polled by Thomson Financial had been looking for a loss of 54 cents a share from GM.
The stock closed Monday at $27.12, up 5%, and initially turned higher in premarket action after the earnings release. However, as traders further digested the numbers, shares of GM were recently trading in negative territory.
Its important to note that GM's results reflect a $1.6 billion tax benefit in continuing operations. The automaker said its fourth-quarter figures also include $768 million in one-time charges, including costs related to its parts supplier Delphi.
GM announced today it reached a buyout deal with all 74,000 hourly union employees, providing the company with an opportunity to reduce labor costs even further.
The number of workers expected to leave is not clear, however, GM can replace up to 16,000 non-assembly line workers with new employees who will be paid half the old wage of $28 per hour, according to details of GM's contract with United Auto Workers.
The last two paragraphs are interesting huh? Rumors abound that we will be offered a buy out in early 09. I think this will become the norm further seperating upper and middle class workers. The "good ole days" are gone.
r8
Detroit auto giant General Motors (GM: 27.34, +0.22, +0.81%) said it made an adjusted profit in the fourth quarter and offered buyouts to all of the company's hourly union workers.
GM posted an adjusted profit of $46 million in the final period of 2007, or 8 cents a share, compared to a profit of $180 million, or 32 cents a share, a year earlier. Including special items from GM's balance sheet, the company said it lost $722 million, or $1.28 a share, which is lower than the $950 million, or $1.68 a share it earned a year ago.
Analysts polled by Thomson Financial had been looking for a loss of 54 cents a share from GM.
The stock closed Monday at $27.12, up 5%, and initially turned higher in premarket action after the earnings release. However, as traders further digested the numbers, shares of GM were recently trading in negative territory.
Its important to note that GM's results reflect a $1.6 billion tax benefit in continuing operations. The automaker said its fourth-quarter figures also include $768 million in one-time charges, including costs related to its parts supplier Delphi.
GM announced today it reached a buyout deal with all 74,000 hourly union employees, providing the company with an opportunity to reduce labor costs even further.
The number of workers expected to leave is not clear, however, GM can replace up to 16,000 non-assembly line workers with new employees who will be paid half the old wage of $28 per hour, according to details of GM's contract with United Auto Workers.
The last two paragraphs are interesting huh? Rumors abound that we will be offered a buy out in early 09. I think this will become the norm further seperating upper and middle class workers. The "good ole days" are gone.
r8
