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 DETROIT, Feb. 24 /PRNewswire/ -- General Motors Corporation

(NYSE: GM) recorded a consolidated net loss in the 1991 fourth quarter of $519.8 million or $1.09 per share of $1-2/3 par value common stock, excluding nonrecurring special factors, Chairman Robert C. Stempel reported today. The fourth-quarter operating results represent a significant improvement from the average quarterly losses on a comparable basis in the first three quarters of 1991 and a reported loss of $1.6 billion or $2.89 per share in the fourth quarter of 1990.
 "The rate of change during the past year was unprecedented, and no one was immune to the extraordinary events which affected our lives and the way in which we do business," Stempel said. "In 1991, the North American automotive industry sustained losses unparalleled in its history. General Motors is taking aggressive action to reverse this trend and improve our prospects for future profitability."
 Stempel further indicated that the improvement in GM's fourth- quarter operating results reflects aggressive steps taken by the worldwide GM organization to reduce costs and improve its competitiveness. Stempel said, "We are committed to substantially resizing GM's North American operations in order to achieve full competitiveness as quickly as possible, and I expect GM's quarterly earnings to continue to improve into 1992."
 Including a special restructuring charge of $1.8 billion after taxes in the fourth quarter and other nonrecurring special items throughout the year, GM recorded a 1991 calendar year loss of $4.5 billion. In 1990, GM earned $102.1 million, before a $2.1 billion after-tax special restructuring charge which reduced reported earnings to a loss of $2.0 billion.
 "Due to our aggressive facilities plan, the special restructuring charges taken in 1990 and 1991 reflect costs which would have otherwise been incurred in the future," Stempel said. "These charges reflect our overall plan to run the business in an increasingly competitive, lean and responsive manner, while reducing costs and improving profitability."
 In addition to its various business sectors, several major nonrecurring elements contributed to General Motors overall 1991 calendar year financial results.
 The after-tax charge of $1.8 billion for the special restructuring, primarily attributable to redundant facilities and related employment costs, was recorded in the fourth quarter. Included in this charge are provisions for six vehicle assembly plants, four powertrain facilities and 11 component plants, as previously announced.
 GM adopted Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes, effective Jan. 1, 1991. The effect of this accounting change was a favorable $232.7 million, or $0.38 per $1-2/3 par value share, and is reflected in a restatement of 1991 first-quarter financial results.
 Results for 1991 include the previously reported favorable impact of $402.8 million after taxes, or $0.66 per $1-2/3 par value share, from the sale of the General Motors New York building in the first quarter, and a change in accounting procedures to include in inventory general purpose spare parts previously charged directly to expense. This accounting change was effective Jan. 1, 1991, and provides a better matching of costs with related revenues. The favorable cumulative effect of the change was $306.5 million after taxes, and $0.50 per $1-2/3 par value share.
 During 1991, GM's international operations remained very profitable despite experiencing normal operating inefficiencies associated with its extensive new model launches and the conversion of six assembly plants. In addition, GM's three major subsidiary operations -- General Motors Acceptance Corporation (GMAC), GM Hughes Electronics Corporation (GMHE), and Electronic Data Systems Corporation (EDS) -- posted strong financial results, with EDS reporting record earnings for the sixth consecutive year and GMAC reporting the second-most profitable year in its history.
 GM's North American automotive operations were unprofitable in 1991, reflecting the industry sales slump in the North American vehicle market, the continuing high cost of consumer incentives and the Corporation's limited ability to reduce labor costs over the short term in line with the decline in North American vehicle sales. Strong performance in achieving cost reductions in a variety of areas contributed to improved results in the fourth quarter.
 Overseas, GM's international operations earned $2.1 billion -- the fourth consecutive year net income exceeded $2.0 billion. GM's overseas results were driven by strong financial results at GM Europe, and by positive results from its Latin American operations led by continuing strong performance in Mexico.
 GMAC's 1991 earnings totaled $1.4 billion, an increase of 15.1 percent from 1990. The 1991 earnings reflect the cumulative effect on income related to implementation in 1991 of SFAS No. 109, which favorably affected net income by $331.5 million. The 1991 results also include the adverse effect of a special wholesale loss provision recorded in the fourth quarter amounting to $170.9 million after taxes. Excluding the impact of this loss provision and the cumulative effect of SFAS No. 109, net income totaled $1.2 billion, an increase of $19.0 million over 1990 earnings. The favorable comparison reflects improved insurance and mortgage banking results as well as widening net interest margins, partially offset by lower earning asset levels.
 For the sixth consecutive year, EDS achieved record earnings, reflecting continued strong performance in its existing businesses as well as growth in new markets. For the first time since EDS was acquired, revenues from non-GM customers exceeded revenues from GM operations. In 1991, EDS earnings totaled $547.5 million, up 10.2 percent over 1990 earnings of $496.9 million. Earnings attributable to Class E common stock on a post-split basis were $1.14, compared with earnings per share of $1.04 in 1990.
 At its Feb. 3, 1992, meeting, the General Motors Board of Directors declared a dividend increase of 12.5 percent on Class E common stock to a quarterly rate of $0.09 cents per share (post-split), up from a rate of $0.08 per share (post-split) in 1991. In addition to the cash dividend, the Board of Directors declared a two-for-one stock split in the form of a 100-percent stock dividend on Class E common stock. The stock dividend is payable March 10, 1992, to stockholders of record on Feb. 14, 1992.
 GMHE reported 1991 calendar year earnings of $559.4 million compared to $726.0 million in 1990. Earnings attributable to Class H common stock amounted to $1.39 per share, down from $1.82 per share in 1990. The lower earnings in 1991 were primarily due to significantly lower GM North American vehicle production and the decline in the flight simulator market and related third-quarter restructuring of GMHE's British subsidiary Rediffusion Simulation Limited. In the 1991 fourth quarter, GMHE posted record quarterly revenues and earnings. GMHE's strong finish to its overall positive performance is attributable to increased GM vehicle production and ongoing efforts to aggressively reduce costs in all segments of its business.
 In 1991, General Motors continued to be the world's leader in new vehicle sales despite a 10.6-percent decline in the North American automotive industry which was brought on by the war in the Middle East, the economic downturn in the U.S. and the resulting dramatic reduction in U.S. consumer confidence. During the year, GM dealers sold 7.3 million cars and trucks worldwide. GM retail sales outside the U.S. and Canada set a record for the seventh consecutive year, with the strongest performance coming from GM's European operations.
 In 1991, worldwide factory sales of vehicles totaled 7,015,000 units, 5.9 percent less than the 1990 level, primarily reflecting the decline in total industry sales in the U.S. During the fourth quarter of 1991, worldwide factory sales totaled 1,878,000 units -- 7.6 percent higher than 1990. In North America, fourth-quarter unit sales increased by 14 percent.
 In 1991, GM recorded a net loss of $7.97 per share on its $1-2/3 par value common stock. Excluding nonrecurring special factors, the Corporation recorded a net loss of $3.4 billion or $6.35 per share. The loss in 1990 was $0.62 per share, excluding the special restructuring charge taken in the third quarter. The 1991 fourth-quarter net consolidated loss was $2.5 billion with a loss of $4.25 per share on GM $1-2/3 par value common stock. Excluding the special restructuring charge and other nonrecurring items, the 1991 fourth-quarter loss was $519.8 million or $1.09 per share -- a significant improvement from the 1990 fourth-quarter loss of $1.6 billion and $2.89 per share of $1-2/3 par value common stock.
 "Politically, socially and economically, these are new times in the global marketplace," Stempel said. "General Motors is aggressively adjusting to a challenging, changing world, and the resizing of our North American operations will be a very positive force in making GM stronger and more competitive.
 "A leaner, more productive GM will make better use of its human and capital resources," he said. "Furthermore, General Motors will continue to be a technology leader, providing its customers with a full range of quality products that meet the needs and desires of its customers. At GM, customer satisfaction is our master plan -- total satisfaction not only with the product itself, but with the entire sales, service and ownership experience."
 (Dollars in millions except
 per-share and hourly amounts)
 12 Months
 Fourth Quarter Ended Dec. 31
 1991 1990 1991 1990
 Sales and revenues
 GM sales $30,430.9 $26,401.5 $109,156.9 $110,797.3
 GMAC financing
 revenues 2,695.9 2,945.1 11,070.3 11,756.7
 Other income 935.5 1,180.4 4,862.5 4,671.7
 transactions (457.9) (651.3) (2,033.7) (2,520.6)
 Total net sales
 and revenues $33,604.4 $29,875.7 $123,056.0 $124,705.1
 Net loss ($2,467.8) ($1,617.0) ($4,452.8)(1) ($1,985.7)
 Net loss as a
 percent of GM
 sales (8.1) (6.1) (4.1) (1.8)
 Earnings (loss)
 attributable to
 common stocks
 $1-2/3 par
 value ($2,603.6) ($1,724.3) ($4,851.4)(1) ($2,378.3)
 Class E $64.3 $52.7 $223.6 (1) $194.4
 Class H $45.8 $43.2 $104.6 (1) $160.0
 Earnings (loss)
 per share
 attributable to
 common stocks
 $1-2/3 par value ($4.25) ($2.89) ($7.97)(1) ($4.09)
 Class E (2) $0.33 $0.28 $1.14 (1) $1.04
 Class H $0.64 $0.49 $1.39 (1) $1.82
 Cash dividends per
 share of common
 $1-2/3 par value $0.40 $0.75 $1.60 $3.00
 Class E (2) $0.08 $0.07 $0.32 $0.28
 Class H $0.18 $0.18 $0.72 $0.72
 Average Worldwide Employment (in 000s)
 GM (excluding units
 listed below 613 589 (3) 592 608 (3)
 GMAC 19 19 19 19 (3)
 EDS 71 62 66 60
 GMHE 77 81 (3) 79 80 (3)
 Average number of
 employes 780 751 (3) 756 767 (3)
 payrolls $7,784.7 $7,468.0 (3) $29,641.1 $29,250.8 (3)
 Average labor cost per
 hour worked - U.S.
 hourly (excludes
 EDS, Hughes and
 Saturn) --- --- $34.60 $31.30
 Worldwide Factory Sales
 Manufactured In (Units in 000s)
 United States
 Cars 691 631 2,470 2,762
 Trucks 342 287 1,225 1,469
 Total United
 States 1,033 918 3,695 4,231
 Canada 235 194 (3) 849 782 (3)
 Overseas (4) 610 633 (3) 2,471 2,441 (3)
 Total All Sources 1,878 1,745 (3) 7,015 7,454 (3)
 (Dollars in millions except
 per-share amounts)
 Dec. 31, Dec. 31, Dec. 31,
 1991 1990 1989
 Cash and marketable
 securities $10,192.4 $7,821.4 $10,213.3
 Book value per share
 of common stocks
 $1-2/3 par value $37.18 $45.17 $52.32
 Class E (2) $4.76 $5.79 $6.71
 Class H $18.61 $22.61 $26.18
 (1) Includes the net favorable (unfavorable) effect of accounting changes of $539.2 million, of which $533.2 million, or $0.88 per share, was applicable to $1-2/3 par value common stock, ($6.1) million, or ($0.03) per share, was applicable to Class E common stock, and $12.1 million, or $0.13 per share, was applicable to Class H common stock.
 (2) Adjusted to reflect the two-for-one stock split in the form of a 100-percent stock dividend declared Feb. 3, 1992, payable to Class E common stockholders on March 10, 1992.
 (3) Revised to reflect 1991 classifications.
 (4) Includes units which are manufactured overseas by other companies and which are imported and sold by General Motors and affiliates.
 -0- 2/24/92
 /CONTACT: Terrence P. Sullivan, 313-556-2019, or William B. Winters, 212-418-6380, both of General Motors/
 (GM) CO: General Motors Corporation ST: Michigan IN: AUT SU: ERN

JG-ML -- DE011 -- 1793 02/24/92 10:30 EST
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Date:Feb 24, 1992

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