DETROIT, July 24 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
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
(Reporting by Ben Klayman in Detroit; Editing by Lisa Von Ahn)