SURPRISE
GM warns of loss because of poor North American sales
From wire reports
DETROIT — General Motors (GM) sharply lowered its earnings guidance Wednesday, citing lower North American sales and production volumes and a tougher pricing environment.
The world's biggest automaker said it expects a first-quarter loss of about $1.50 a share, compared with a previous target of break-even or better. It expects income of $1 to $2 a share for the full year, down from its previous guidance of $4 to $5.
David Cole, director of the Center for Automotive Research, said he expects others in the auto industry to have similar problems. "This will not be the only company where you're going to see this kind of comment," he said.
Higher fuel and raw material prices, such as steel, were creating a "perfect storm with a confluence of a large number of factors that are causing severe pressure across the entire industry" and particularly hurting companies like GM, he added.