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GM Finalizes First-Quarter Results
GM Finalizes First-Quarter Results.
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[{"type":"text","content":"\n \nGM Finalizes First-Quarter Financial Results\n\n * Q1 Reported Net Income Revised to $445 million, or $0.78 Per Share\n * GM North America Adjusted Loss Reduced to $462 Million\n * Health-Care Settlement Costs to Be Recognized Over 7 Years\n\n DETROIT, May 9 -- General Motors Corp. (NYSE: GM) today announced that it had finalized its first-\nquarter 2006 financial results to reflect final determination of the first-quarter accounting treatment for the \nrecently approved retiree health-care settlement agreement and other adjustments. \n As a result, GM earned $445 million, or $0.78 per diluted share of common stock, in the first quarter. \nThese results compare with a preliminary loss for the period of $323 million, or $0.57 a share. GM reported \na loss of $1.3 billion, or $2.22 per share in the first quarter of 2005. \n The difference between the preliminary and final results primarily reflects a change in the way GM will \naccount for the health-care settlement agreement between GM and the United Auto Workers union. As part \nof the agreement, GM will make contributions to a new independent Voluntary Employees' Beneficiary \nAssociation trust (VEBA) of $1 billion in each of 2006, 2007, and 2011. GM will also make supplemental \ncontributions to this VEBA related to events like profit-sharing payments, wage deferrals from active \nemployees, and increases in the value of GM stock. \n After discussions with the U.S. Securities and Exchange Commission on the proper accounting treatment \nfor the settlement agreement, GM has determined that it will recognize the impact of the contributions over \napproximately 7 years, beginning in the third quarter of 2006 when the health-care changes are scheduled to \ntake effect. \n Excluding special items, GM reported adjusted net income of $184 million, or $0.32 per diluted share in \nthe first quarter of 2006, compared with a preliminary adjusted loss for the period of $529 million, or $0.94 \nper share. In the year-ago quarter, GM reported an adjusted loss before special items of $988 million, or \n$1.75 per share. \n The following table describes the effects of the accounting treatment, and the adjustment in GMAC's \nprofitability as noted below, on adjusted net income, which excludes special items.\n\n GM First Quarter Adjusted Net Income (loss)\n (Dollars in millions except per sh...