Following discussions with securities regulators, General Motors Corp. revised its first-quarter results, excluding a charge for a retiree health care deal with its union. The change altered the company's results from a loss to a profit.
The discussions, according to the company, centered on an initially reported charge of $681 million related to a health-care settlement with blue-collar retirees. After excluding the charge, GM said it had earned $445 million in the first quarter, compared with an initially reported loss for the period of $323 million.
With the profit, GM, which earlier in the year announced extensive layoffs and plant closings, ends five straight quarters with losses, according to a Reuters report.
The Reuters report said that the automaker intends to make contributions of $1 billion this year and next year and then again in 2011 to that trust as a result of a cost-saving deal with the United Auto Workers.
Excluding special items, including a profit from the sale of its stake in Japan’s Suzuki Motor Corp., GM said it had posted earnings of $184 million.
GM also revised first-quarter results for its finance arm, General Motors Acceptance Corp., to reflect the tax effect of the sale of its commercial mortgage division. GMAC earned $637 million, compared with the previously-reported $605 million, the company said.