On Wall Street, General Motors opens strongly negative. It dropped 2,2%, reducing last year's profit of 1,2 billion dollars to 190 million. The shares plunge, and are trading at 11 cents – last year they were at 75. These accounts are weighed heavily by the costs put into the compensation fund for victims killed or injured following an ignition failure of vehicles. In addition to the 400 million dollars - at least - foreseen for this item, there are also the numerous returns of automobiles.
Extraordinary items amount to 47 cents per share. Among these also the compensation fund for the victims that the Detroit board estimates could increase by 200 million. Furthermore, we must count the charge of 874 million linked to a different way of accounting for vehicle returns, which amount to almost 29 million since the beginning of 2014. Finally, the 200 million restructuring costs that the Detroit company weighs on GM accounts had to face.
Net of extraordinary items, however, General Motors earned 58 cents per share, almost in line with analysts' forecasts of 59 cents.
