The world's biggest car maker, General Motors, has reported a first quarter loss of $1.1 billion, reflecting difficult business conditions in the US.
The loss excluding exceptional items and restructuring costs amounted to $1.48 a share, a cent better than most Wall Street forecasts.
The once-off items included charges for restructuring in Europe, US job cuts and factory closures, as well as tax adjustments. Without these costs, the adjusted loss reported by GM was $839m. The results compared with a profit of $1.2 billion in the same period a year ago. GM said revenue fell by 4.3% to $45.8 billion.
The company's North American division dragged down the overall results with a loss of $1.3 billion.
'This deterioration reflects lower sales and production volumes, a tougher pricing environment, an unfavourable sales mix and a continuing, large health care burden,' GM said.
'While most of our business units exceeded expectations, the results at GM North America were clearly disappointing,' said GM chairman and CEO Rick Wagoner. GM last month slashed its own forecasts from break even to a loss, citing weak sales in North America and tough competition from abroad.
Along with pension cost problems and fierce competition from the Japanese, GM has had to grapple with falling demand for its sport utility vehicles, its most profitable vehicle segment, amid record high fuel prices.
GM pleaded with union officials last week to help spread the burden of rising health care costs, which GM predicted could reach $5.6 billion this year.
