General Motors Posts Loss of $1.92 a Share

General Motors (GM) reported a third-quarter loss of $1.6 billion, or $1.92 a share. That’s simply staggering. The company doesn’t provide any guidance, but Wall Street expected a loss of 81 cents a share. GM still has over $20 billion in cash left, but it’s burning through it pretty quickly.
The company also announced a major deal with the UAW to cut health care costs by 25%. The details haven’t been reported yet. This will help, but GM still has a long way to go. The company pays a dividend of $2.00 a share. If they ditch the dividend, GM will save about that same amount as this plan to cut health care costs. The company is also looking to sell a controlling interest in GMAC.

Posted by on October 17th, 2005 at 8:52 am


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