The world's largest carmaker General Motors today warned that that its $2.5 billion full-year profit target was in doubt after announcing first-quarter earnings.
The company said first-quarter net earnings per share rose to $2.71 from 57 cents a year earlier, but it added that it is "less certain" than it once was that it will meet its full-year EPS target of $5 due to global economic difficulties.
GM also said it now expects its second-quarter EPS before special items to be at least $1. The First Call consensus second-quarter EPS estimate for GM is for $1.46.
But analysts said was not immediate clear from the company's statement whether the two figures are comparable. The company's first-quarter EPS before special items rose to $1.84 from $1.39 a year earlier.
The First Call/Thomson Financial analysts consensus estimate for GM's first-quarter EPS was for $1.54.
Looking further ahead, GM said it "expects to be profitable in both the third and fourth quarters of 2003. However, GM is now less certain of its ability to achieve its prior 2003 calendar-year guidance of $5 earnings per share, given the uncertain economic conditions around the globe."
"In light of these circumstances, GM is not providing any specific update to its calendar-year earnings guidance at this time," the company said.
GM said its first quarter results included a $505 million after-tax gain, or 90 cents per share, from the sale of its defense unit.
Results in the most recent period reflected profitable North American operations, and improved results in Europe and Asia, as well as strong cash flow and a record performance by its credit unit.
GM said its US market share was 26.6 per cent in the first quarter, down from 28.2 per cent in the year-earlier period.
AFP