AFSCME 3357-HOF'S BLOG

General Motors Changes 1st Quarter from Loss to Profit

As I previously reported to you, General Motors reported a $323 Million Loss for the first quarter of 2006. Not anymore. GM revised its previous statement and is now reporting a $445 million profit for the same period. What accounts for the change? GM is spreading out the accounting impact of the money that it set aside (or is setting aside) for future retiree health care. Although there isn't a corresponding cash impact on GM's books, a profit is better than a loss.

(Note: Blogger has been acting up lately and has been crashing when I attempt to put in weblinks. Posts may come less frequently until this problem is sorted out.)