GM posts big loss as U.S. sales hurt

General Motors Corp. reported a large first-quarter loss Wednesday, due in large part to struggles at its former finance wing GMAC, a strike at American Axle and slumping U.S. car sales.

But the loss was narrower than expected and sales topped forecasts, helping to lift shares of GM (GM, Fortune 500) 9% to $23.15.

GM, the nation's largest automaker, posted a net loss of $3.3 billion, or $5.74 per share. That was much wider than the $42 million, or 7 cents a share, loss from continuing operations it reported in the same period last year.

Excluding one-time losses from GMAC and $731 million in bankruptcy support for auto parts manufacturer Delphi, GM lost $350 million, or 62 cents per share. Analysts polled by Thomson Financial, who generally exclude one-time events from their forecasts, were looking for a deeper loss of $1.60 per share.


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