GM Posts 58 Percent Drop in 4Q Earnings

DETROIT Reuters reported General Motors Corp. said on Wednesday its fourth-quarter earnings before one-time items dropped 58 percent due to higher marketing costs and cuts in production as a result of the weakening U.S. economy.

GM, the world's largest automaker, said earnings fell to $255 million, or 60 cents a share, in the fourth quarter, from $609 million, or $1.15 a share, a year ago, excluding one-time items.

The Detroit-based automaker last week raised its forecast for fourth-quarter earnings before charges to 60 cents per share from 50 cents, reflecting stronger-than-expected U.S. vehicle sales.

Wall Street estimates for fourth-quarter earnings had ranged from 40 cents to 76 cents, with a consensus analyst forecast of 59 cents, according to research firm Thomson Financial/First Call.

Net earnings including one-time charges in the fourth quarter last year totaled profits of $89 million or a loss of $1.16 a share. The per-share loss in the fourth quarter last year was due to the way GM accounts for its stake in its Hughes Electronics Corp. unit. GM recorded no one-time items in the fourth quarter this year.