GM executives on Tuesday said the current analyst consensus of approximately $US1.20 earnings per share for the second quarter, excluding Hughes and special items, is reasonable and is consistent with GM’s previous guidance of more than $1.00 per share for the quarter.

GM’s second quarter outlook comes after the negative accounting impact of about $0.25 – $0.35 per share related to lost production and damage from a recent tornado at the Oklahoma City plant.

For the full year, GM reiterated that its ability to achieve its target of $5.00 earnings per share, excluding Hughes and special items, remains uncertain in light of the intense pricing pressure in the US – as previously stated in April. GM North America is expected to fall short of its initial net income target for 2003. However, General Motors Acceptance Corp. (GMAC) continues to exceed expectations and is now forecasting earnings of more than $2 billion – which would set a new record.