General Motors today reported improved financial results for the first quarter of 2006. GM reported a preliminary net loss of $323 million, or $0.57 per share, in the first quarter of 2006. Excluding special items but including the effect of the $681 million post-tax health-care charge, GM reported a preliminary adjusted loss of $529 million. That compares to an adjusted loss before special items of $988 million in the first quarter of 2005. GM’s automotive operations reported an adjusted loss of $721 million in 2006, including the health-care charge, halving the year-ago adjusted loss of $1.5 billion. All of the company’s automotive units reported progress in the quarter, with three out of the four units posting profitable results. GM North America reported an adjusted loss of $946 million in the first quarter of 2006, including $484 million of the retiree health-care settlement charge. This compares to an adjusted loss of $1.5 billion a year ago. The Leftlane Perspective: GM’s results may seem flat when you take away the health-care savings, but the company says the agreement will save $750 million per quarter through 2011 — which is significant. Moreover, GM reported record revenue of $52.2 billion, which is also a good sign, if the company can get costs down.
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