CBS MarketWatch reports that GM is expected to turn in red ink this year, according to UBS analysts who have joined the ranks of Wall Street analysts forecasting 2005 losses for GM.
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When GM turned in April reported a first-quarter loss of $1.1 billion, the company refused to make a forecast for 2005’s financial results as a whole.
In the vacuum that followed, other analysts have written that they expect losses from GM. Lehman Bros. analysts on April 25 wrote that they expected a loss, instead of a profit.
On Tuesday, UBS analyst Rob Hinchliffe wrote that he expects GM to lose $1.25 a share in 2005, revising his prior target of a 50-cent profit lower.
According to Thomson First Call, the consensus 2005 estimate for GM is a loss of 70 cents a share.
Hinchliffe also wrote that GM’s sales this month should help the company lower its inventory.
“Strong June sales look to clear the decks of ’05 models and along with the summer shutdown will bring inventory levels down toward normal levels,” Hinchliffe wrote.
