General Motors has indicated it may not be able to meet its goal of posting $US10 a share in profit by the middle of the decade, Reuters reported, citing the Wall Street Journal.
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A GM spokeswoman has said the “mid-decade” goal “has become much more difficult to attain in the time frame that we originally articulated,” the newspaper reported, according to Reuters.
The news agency noted that GM last month cut its 2004 profit forecast – to a range of $6.00 to $6.50 per share from about $7.00 per share – due to mounting losses in Europe and slowing growth in China. The WSJ reportedly said that GM did not, at the time, mention the $10-a-share forecast, first announced in 2002.
Reuters added that GM has also been hit by growing health-care costs and said last week that a change in a rate used to calculate future health care costs, which have come under the scrutiny of US regulators, could see those expenses rise by about $170 million next year.
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