GM 2Q Profit Falls 85 Percent
DETROIT (AP) -- General Motors says second-quarter profit fell 85 percent as recall costs chopped $1.5 billion from the bottom line.
The automaker posted a net profit of $190 million, or 11 cents per share, including restructuring and recall-related expenses. A year ago GM made $1.26 billion, or 75 cents per share.
Without one-time items GM would have made 58 cents per share, equaling Wall Street's expectations.
So far this year GM has recalled almost 30 million vehicles, a company record.
GM took a number of pretax charges tied to the recalls. They Include $400 million to compensate victims of ignition-switch related crashes; $874 million to account for recall expenses during the next 10 years; and $1.2 billion for recalls announced during the quarter. The after-tax impact of those items was $1.5 billion.