GM REPORTS 5% DIP IN 1ST-QUARTER PROFITS.Byline: Deborah Adamson Daily News Staff Writer General Motors Corp. reported a 5 percent drop in first-quarter profits due to weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. demand in international sales.
Net income fell to $1.6 billion, or $2.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $1.7 billion, $2.21 per diluted share, a year ago. Revenue dropped from $42.2 billion to $41.6 billion. Results were adjusted for December's spinoff Spinoff A new, independent company created through selling or distributing new shares for an existing part of another company. Notes: Spinoffs may be done through a rights offering. of GM's Hughes subsidiary. The results were above analysts' expectations of $2.25 per share. International profit fell 39 percent to $160 million as economic problems in Asia and Brazil hurt demand. However, earnings from North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. rose 8.1 percent to $826 million, helped improved truck sales and cut costs. GM cut its expenses by $1.2 billion in the first quarter. Per-share earnings were bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. due to a stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program that reduced outstanding shares by 8 percent as well as a change in depreciation, an analyst said. Among other major U.S. corporations that reported earnings Friday: Caterpillar caterpillar (kăt`əpĭl'ər, kăt`ər–), common name for the larva of a moth or butterfly. Caterpillars have distinct heads and are segmented and wormlike. Inc.: The maker of earth-moving equipment report its best first-quarter results in company history. Net income rose 9.1 percent to $430 million, $1.15 per diluted share, bolstered by record engine and machinery sales despite the economic slowdown in Asia. Results rose above analysts expectations of $1.10 per share. Revenues rose 12 percent to $4.79 billion. A year ago, earnings were $394 million, $1.03 per split-adjusted share. The U.S. economy's strength and increased spending on new construction projects helped company sales. Revenues also benefited from its $1.33 billion purchase of LucasVarity Plc's Perkins engine unit. Caterpillar predicts that 1998 revenue will ``slightly surpass'' last year's record. McDonald's Corp.: The global restaurant chain's first quarter earnings rose 5.1 percent, helped by overseas expansion. Net income rose to $362.2 million, 52 cents per share, from $344.5 million, 48 cents per share, a year ago. Revenue rose 7 percent to $2.80 billion, bolstered by adding 214 new restaurants overseas during the quarter. Last year, McDonald's curbed its American expansion to focus on overseas business after franchise owners complained that new stores were hurting their restaurants. In 1998, McDonald's plans to add about 2,100 new restaurants, of which 85 percent will be overseas. In the first quarter, American food sales rose 3 percent, while overseas sales rose 5.5 percent. |
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