GM's profit falls on recall costs, victims' compensation fund
DETROIT, July 24
DETROIT, July 24 (Reuters) - General Motors Co reported a lower second-quarter profit on Thursday due to numerous recalls and the expected cost of at least $400 million for its victims' compensation fund for those killed or injured by a defective ignition switch linked to at least 13 deaths.
Net income in the quarter fell to $190 million, or 11 cents a share, compared with $1.2 billion, or 75 cents a share, a year earlier.
One-time items in the quarter totaled 47 cents a share. The quarter included the charge for the establishment of the victims' compensation fund, which GM said could rise by about $200 million, as well as an $874 million charge for a change in how the company will account for recalls.
Not counted as one-time items were previously disclosed costs of $1.2 billion for GM recalls, which have covered almost 29 million vehicles so far this year. GM also has $200 million in restructuring costs.
Excluding one-time items, GM earned 58 cents a share, just below the 59 cents analysts polled by Thomson Reuters I/B/E/S had expected. (Reporting by Ben Klayman in Detroit; Editing by Lisa Von Ahn)
- Study of smoking cancer patients fuels e-cigarette debate
- Islamic State closes in on Syrian town, refugees flood into Turkey |
- Exclusive: Iran seeks give and take on Islamic State militants, nuclear program
- Alibaba IPO ranks as world's biggest after additional shares sold
- Accused White House intruder is decorated Iraq war veteran