GM forecasts 2003 earnings of $5 per share

DETROIT, Jan 9, 2003; Reuters reported that General Motors Corp. on Thursday forecast earnings of $5 per share in 2003, excluding its Hughes Electronics Corp. <GMH.N> unit, and laid out a goal to improve its market share in all regions.

Estimates from 16 Wall Street analysts for GM's 2003 per-share earnings, including Hughes, range from $3 to $7.05, with an average of $5, according to earnings tracking firm Thomson First Call.

GM said it expects its North American automotive operations to earn $1.7 billion to $1.9 billion this year, while GM Europe earnings are forecast to range between break-even and a loss of about $200 million.

GM said its U.S. pension plan ended 2002 underfunded by $19.3 billion. The automaker said it will cut its target return rate on the pension plan to 9 percent from 10 percent previously

GM's forecast comes a day before cross-town rival Ford Motor Co. <F.N> is to reveal its outlook for the year. U.S. auto sales are generally expected to fall moderately from strong levels in 2002.