GM's quarterly earnings drop by 74%

General Motors today posted a 74 per cent drop in second quarter earnings to $477 million, including a charge of $133 million…

General Motors today posted a 74 per cent drop in second quarter earnings to $477 million, including a charge of $133 million, as lower US vehicle sales and losses from overseas operations took their toll.

Detroit-based GM, the world's largest car maker, said earnings dropped to $1.03 per share in the second quarter, including the charge of 23 cents per share - down from $1.8 billion, or an unprecedented $2.93 per share, in the second quarter a year ago.

Excluding the charge for a restructuring of affiliate Isuzu Motors, GM earnings dropped to $610 million, or $1.26 per share, near the high end of Wall Street predictions.

Analysts had been expecting earnings in the range of 90 cents to $1.59 per share, with a consensus forecast of $1.14, according to tracking firm Thomson Financial/First Call.

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GM's shares have outperformed those of its closest rival, Ford, by about 25 per cent since the start of the year. Ford is scheduled to release its second-quarter results tomorrow.