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GENERAL MOTORS REPORTS SECOND-QUARTER EARNINGS

    DETROIT, July 29 /PRNewswire/ -- General Motors Corporation (NYSE: GM) today reported 1993 second-quarter consolidated income of $889 million.  Consolidated income for the first six months of the year totaled $1.4 billion.
    After preference stock dividends and the allocation of earnings attributable to GM Class E and Class H common stock, earnings per share on $1-2/3 par value common stock in the second quarter amounted to $0.92 per share.
    Income improved $1.6 billion compared with the second quarter of 1992 when GM lost $703 million.  Second-quarter results in 1992 included a special restructuring charge of $749 million at GM's Hughes Aircraft Company subsidiary (excluding the 1992 special restructuring charge, quarter-to-quarter improvement -- $843 million).
    Sales and revenues totaled $36.7 billion during 1993's second quarter, an increase of 3.9 percent compared with the same period last year.
    "Our continuing improvement at General Motors is demonstrated by the second-quarter results," GM Chief Executive Officer and President John F. Smith, Jr., said.  "We've shown that the GM team can be innovative, responsive and effective.  But we must keep the momentum going in our long journey to regain a position of traditional financial strength."
    Even with the growing success in meeting GM's aggressive performance targets, Smith said, "There are a number of uncertainties that could impact us in the future, including the outcome of negotiations with unions representing GM employees and the unfavorable economic conditions in Europe.  In addition, the economic recovery in the United States appears to be somewhat fragile.  And, the sustainability of a strong market in Latin America is sensitive to political and economic conditions in that region."
    Total cash and marketable securities on hand at June 30, 1993, with GMAC on an equity basis, amounted to $9.1 billion, compared with $8.4 billion at March 31, 1993, and $6.8 billion at June 30, 1992.
    "Our cash position continues to strengthen," Smith said.  "We plan to maintain our all-important future product programs utilizing improved capital-spending efficiencies, while at the same time improving our balance sheet."
    Ongoing financial challenges cited by Smith include: "restoring profitability to our North American Operations, reducing GM's unfunded pension liability, containing health-care costs and improving our credit ratings.  And we must continue to address our fundamental cost structure to assure that GM is well positioned to weather any future economic or market downturns."
    During the second quarter, GM vehicle deliveries worldwide were 2,250,400 units, compared with 2,179,800 units in the same period last year, an increase of 3.2 percent.  Worldwide wholesale vehicle sales by GM totaled 2,096,000 units, a 3.6-percent decrease from the second quarter last year.
    GM's major subsidiaries -- General Motors Acceptance Corporation, GM Hughes Electronics Corporation, and Electronic Data Systems Corporation -- reported improved operating results in the second quarter.
    Following are highlights of 1993 second-quarter financial performance by GM's major business sectors (see attached "Financial Summary" for additional details):
    NORTH AMERICAN OPERATIONS (NAO)
    NAO second-quarter earnings before interest, taxes and the ongoing non-cash effect of Statement of Financial Accounting Standards (SFAS) No. 106 were $675 million -- a $973-million improvement from the second quarter of 1992.
    "We remain firmly on track to achieve this year's financial target for NAO -- to break even before interest, taxes and special items," Smith said.  "We're off to a good start in the first six months toward achieving the target that will result in a $4.5-billion calendar-year improvement at NAO.  Continuing this rate of progress," he stressed, "remains a challenge."
    Even with the recent improvements at NAO and progress toward achieving its goals, GM reported a net loss attributable to automotive operations in North America of $95 million in the second quarter, compared with a loss of $761 million in the prior-year period.
    GM's second-quarter share of the total U.S. vehicle market was 34.8 percent, compared with 35.5 percent in the same period last year. The decline in GM's market share in the United States is primarily a result of the strategy to reduce less-profitable sales to daily rental fleets.  GM's share of total U.S. car deliveries was 36.5 percent, compared with 37.2 percent in the second quarter of 1992.  GM's share of truck deliveries in the second quarter this year was 32.1 percent, compared with a 32.5-percent share in the second quarter last year.
    "The sales momentum that continued in the second quarter, resulted in a 4.8-percent increase in U.S. vehicle deliveries for the first half of the year, and we want to keep that momentum going," Smith said.
    "We're going to be tough competitors," Smith explained, "relying on hard work, creativity and enthusiasm as we aggressively pursue existing opportunities and look for new ones, never losing sight that the customer is the focus of everything we do in all areas of the business."
    INTERNATIONAL AUTOMOTIVE BUSINESS
    GM's international automotive operations earned $368 million in the second quarter compared with $284 million in the same period last year. The results reflected continued profitability in Europe despite weak market conditions, and strong sales and financial performance in Latin America.
    GENERAL MOTORS ACCEPTANCE CORPORATION (GMAC)
    GMAC's income totaled $285 million in the second quarter of 1993, compared with $282 million in the year-earlier period.  Results reflected higher net income from GMAC's insurance and international operations, offset by the impact of lower earning asset levels and tighter net-interest margins in North America.
    GM HUGHES ELECTRONICS CORPORATION (GMHE)
    GMHE reported earnings of $232 million in the second quarter, compared with a loss of $597 million in the year-ago period, which included the effect of the 1992 special restructuring charge of $749 million at Hughes Aircraft.
    The second-quarter results reflect improved operating performance in all business segments.  Earnings increases are principally attributed to continued growth in GMHE-supplied automotive electronic components and systems, contributions from the missile business acquired in 1992, and other efforts to reduce costs.
    The earnings attributable to GM Class H common stock amounted to $0.58 per share in the second quarter, compared with a loss of $1.49 per share in the 1992 second quarter including the restructuring charge.
    ELECTRONIC DATA SYSTEMS CORPORATION (EDS)
    EDS continued its strong financial performance, with record second- quarter earnings of $178 million, an increase of $21 million compared with the second quarter of 1992 when EDS reported earnings of $157 million.
    EDS second-quarter performance reflects continued growth in non-GM business as EDS increases its focus on global expansion.
    Second-quarter earnings per share attributable to GM Class E common stock were $0.37, up from $0.33 in the second quarter of 1992.
    "We appreciate the great job the GM team is doing to help rebuild our financial strength.  We realize, however, that we're only getting started," Smith said.  "To achieve our objective, we must strengthen our balance sheet, improve our credit ratings and build a solid foundation for the future.  We can't afford to get complacent for one minute -- and we won't."
      FINANCIAL SUMMARY
      (Dollars in Millions Except         Second Quarter
                                   ----------------------
      Per Share Amounts)                 1993         1992
      ------------------            ---------   ----------
      Sales and Revenues
        GM sales                    $32,875.1    $31,980.9
        GMAC financing revenues       2,219.8      2,548.9
        Other income                  1,932.1      1,178.6
        Intersegment transactions      (368.9)      (427.8)
                                     --------     --------
          Total Net Sales and
            Revenues                $36,658.1    $35,280.6
                                     --------     --------
      Net Income (Loss)                $889.1      ($703.2)(1)
      Earnings (Loss) Attributable to Common Stocks
        $1-2/3 par value               $662.4      ($752.1)
        Class E                         $87.7        $67.2
        Class H                         $50.0       ($95.5)
      Earnings (Loss) Per Share Attributable to Common Stocks
        $1-2/3 par value                $0.92       ($1.18)(1)
        Class E                         $0.37        $0.33
        Class H                         $0.58       ($1.49)(1)
      Cash Dividends Per Share of Common Stocks
        $1-2/3 par value                $0.20        $0.40
        Class E                         $0.10        $0.09
        Class H                         $0.18        $0.18
      Average Worldwide Employment (in 000s)
        GM (excluding units listed
          below)                          542          587
        GMAC                               18           19
        EDS                                72           70
        GMHE                               85           88
                                          ---          ---
        Average Number of Employees       717          764
      Worldwide Payrolls             $7,642.1     $7,735.8
      Worldwide Wholesale Sales (2) (Units in 000s)
        United States:   Cars             837          874
                         Trucks           457          434
                                      -------      -------
          Total United States           1,294        1,308
        Other North America               139          153
                                      -------      -------
            Total North America         1,433        1,461
        Overseas                          663          713
                                      -------      -------
              Total All Sources         2,096        2,174
                                     -------      -------
      Certain 1992 amounts were reclassified to conform with 1993 classifications.
      (1)  Includes a special restructuring charge of $749.4 million, or $0.97 per share of $1-2/3 par value and $1.87 per share of Class H common stock.
      (2)  Effective January 1, 1993, GM changed its vehicle unit sales reporting policy from Factory Sales (where produced) to Wholesale Sales (where sold) to more effectively track dollar sales.  Also included in Wholesale Sales are the sales of certain affiliates which were previously not included.
      FINANCIAL SUMMARY (continued)
      (Dollars in Millions)
                                           Second Quarter
                                         ------------------
      Major Business Sector
        Results                           1993         1992
                                         -----        -----
      North American Automotive Business (Geographic Basis)
        NAO EBIT(A)                     $675.3      ($298.0)
        Interest, Taxes & Other
          Adjustments                   (770.7)      (463.4)
                                         -----        -----
        Loss                            ($95.4)     ($761.4)
                                         -----        -----
      International Automotive Business (Geographic Basis)
        Income                          $367.7       $283.7
                                         -----        -----
      GMAC
        Income                          $285.4       $282.4
                                         -----        -----
      GMHE
        Earnings Before Restructuring
          Charge                        $232.0       $152.5
        Restructuring Charge                 -       (749.4)
                                         -----        -----
        Earnings (Loss)                 $232.0      ($596.9)
                                         -----        -----
      EDS
        Earnings                        $178.1       $157.1
                                         -----        -----
      Other(B)
        Loss                            ($78.7)      ($68.1)
                                         -----        -----
      Consolidated Net Income
        (CNI) (Loss)                    $889.1      ($703.2)
                                         =====        =====
      Memo: CNI Excluding Hughes
            Restructuring Charge        $889.1        $46.2
                                         =====        =====
      (A)  EBIT is defined as NAO Earnings (Loss) Before Interest, Taxes & Incremental Ongoing SFAS No. 106
      (B)  Includes Power Products & Defense and purchase accounting adjustments
      FINANCIAL SUMMARY (continued)    Six Months Ended
      (Dollars in Millions Except           June 30,
                                     ----------------------
      Per Share Amounts)                 1993         1992
      ------------------            ---------   ----------
      Sales and Revenues
        GM sales                    $64,347.8    $60,768.3
        GMAC financing revenues       4,487.6      5,101.6
        Other income                  3,506.0      2,529.4
        Intersegment transactions      (727.1)      (861.7)
                                     --------     --------
          Total Net Sales
            and Revenues            $71,614.3    $67,537.6
                                     --------     --------
      Income (Loss) Before
        Cumulative Effect of
          Accounting Changes         $1,402.3      ($869.9)
      Net Income (Loss)              $1,402.3   ($21,747.6)(1)
      Earnings (Loss) Attributable to Common Stocks
        $1-2/3 par value               $962.9   ($21,791.3)(1)
        Class E                        $161.8       $122.7
        Class H                         $94.4      ($223.4)(1)
      Earnings (Loss) Per Share Attributable to Common Stocks
        $1-2/3 par value                $1.34      ($35.14)(1)
        Class E                         $0.69        $0.61
        Class H                         $1.05       ($3.26)(1)
      Cash Dividends Per Share of Common Stocks
        $1-2/3 par value                $0.40        $0.80
        Class E                         $0.20        $0.18
        Class H                         $0.36        $0.36
      Average Worldwide Employment (in 000s)
        GM (excluding units listed
          below)                          545          579
        GMAC                               18           19
        EDS                                72           70
        GMHE                               86           89
                                          ---          ---
        Average Number of Employees       721          757
      Worldwide Payrolls            $15,072.3    $15,180.2
      Worldwide Wholesale Sales (2) (Units in 000s)
        United States:  Cars            1,577        1,552
                        Trucks            935          819
                                        -----        -----
          Total United States           2,512        2,371
        Other North America               270          282
                                        -----        -----
            Total North America         2,782        2,653
        Overseas                        1,295        1,413
                                        -----        -----
              Total All Sources         4,077        4,066
                                        -----        -----
      Certain 1992 amounts were reclassified to conform with 1993 classifications.
      (1)  Includes the unfavorable effect of accounting changes
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