|
GM reaffirms 3Q target
|
 |
September 17, 2001: 11:20 a.m. ET
But automaker says uncertain consumer reaction makes 4Q forecast difficult
|
NEW YORK (CNNfn) - General Motors Corp. said it had limited production cuts last week due to the nation's worst terrorist attack and said it should still be able to meet its previously stated third-quarter earnings per share guidance.
The company said the outlook for fourth-quarter earnings is tougher to predict due to the uncertain reaction of consumers to last week's attacks.
"While vehicle deliveries were somewhat resilient last week, it is too soon to determine the effect on consumer confidence," GM CEO Rick Wagoner said. "We will closely monitor the economic outlook and will be prepared to make appropriate production adjustments."
No. 2 automaker Ford Motor Co. warned investors Friday that the terrorist attack will cause it to miss lowered third-quarter earnings targets. Both GM (GM: down $5.47 to $46.11, Research, Estimates) and Ford (F: down $1.90 to $17.50, Research, Estimates) shares were lower as stocks resumed trading Monday for the first time since last Tuesday. Other automakers' and auto suppliers' stocks also were lower.
GM said third-quarter production will be 10,000 vehicles less than previous targets due to the shutting of three East Coast facilities the day of the attack, a production stoppage at all U.S. plants Friday in observance of the National Prayer and Remembrance Day, and some parts shortages caused by transportation disruptions. That puts third-quarter production slightly above 1.22 million vehicles.
Click here for a look at auto stocks
The company said it expects to earn 83 cents a share in the third quarter, down from the $1.55 a share it earned a year earlier, but just above current analysts' forecasts of 81 cents a share. The company's previous full-year earnings guidance called for $4.25 a share, down from $8.43 in 2000. But few analysts ever embraced that guidance and the consensus forecast for full-year EPS is $3.87, with estimates ranging from $3.30 to $4.40. 
|
|
|
|
|
|
General Motors
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
