wsj_0950.xml

WSJ891026-0108 WSJ891026-0108 = 891026
= 891026
891026-0108 . 891026-0108 . GM Hughes @ Profit Fell 22 % @ In Third Period @ --- @ GMAC Net Slipped 3.1 % ; @ Electronic Data Systems @ Says Earnings Rose 16 % @ ---- @ By Neal Templin @ Staff Reporter of The Wall Street Journal GM Hughes @ Profit Fell 22 % @ In Third Period @ --- @ GMAC Net Slipped 3.1 % ; @ Electronic Data Systems @ Says Earnings Rose 16 % @ ---- @ By Neal Templin @ Staff Reporter of The Wall Street Journal 10/26/89 10/26/89
10/26/89
WALL STREET JOURNAL ( J ) WALL STREET JOURNAL ( J ) GM GME GMH GM GME GMH AUTOMOBILES ( AUT ) EARNINGS ( ERN ) AUTOMOBILES ( AUT ) EARNINGS ( ERN ) General Motors Corp. 's big defense and automotive electronics unit , GM Hughes Electronics , said net income fell 22 % in the third quarter , reflecting declining military spending and slumping GM vehicle production . Meanwhile , net at GM 's finance arm , General Motors Acceptance Corp. , fell 3.1 % . By contrast , Electronic Data Systems Corp. , GM 's data processing subsidiary , boosted net 16 % . GM closed down $ 1.875 at $ 44.875 in New York Stock Exchange trading yesterday . Earnings for GM common stock , reflecting the performance of GM 's core automotive operations , will be disclosed this morning . GM Class H , which represents a dividend interest in Hughes earnings , closed at $ 29 , up 25 cents in Big Board composite trading . GM Class E , which represents a dividend interest in EDS profit , fell 75 cents to $ 52.25 on the Big Board . The earnings drop at GM Hughes Electronics is a sign of tough times at both the defense operations of Hughes Aircraft Co. and GM 's North American automotive operations , which are a primary customer for the Delco Electronics Corp. side of the GM Hughes unit . Profit at the unit fell to $ 110.6 million , or 37 cents a share , from $ 142.4 million , or 45 cents a share , largely because of a $ 24 million one-time charge associated with Hughes 's previously announced plan to reduce employment by at least 6,000 people by year end . Even excluding the charge , however , net fell 5 % . In addition , GM 's North American vehicle production fell 8.4 % from a year ago , which hurt Delco Electronic 's earnings , a company spokesman said . That decline was reflected in revenue for the GM Hughes unit , which edged down to $ 2.58 billion from $ 2.63 billion . In the nine months , GM Hughes net fell 6.6 % to $ 486.6 million , or $ 1.48 a share , from $ 521 million , or $ 1.58 a share . Revenue rose 3.5 % to $ 8.47 billion from $ 8.18 billion . At GMAC , net dropped 3.1 % to $ 234.5 million from $ 241.9 million . The finance unit attributed the decline to higher borrowing costs compared with a year earlier . GMAC said its automotive financing and leasing business rose 35 % in the U.S. , largely because of dealer and customer incentives used to boost sales . GMAC profits are combined with earnings from the rest of GM 's operations and attributed to the company 's traditional common stock . In the first nine months , GMAC 's earnings fell 8 % to $ 859.5 million from $ 930.2 million . At EDS , third-quarter profit jumped 16 % to a record $ 110.9 million , or 93 cents a share , from $ 95.9 million , or 79 cents a share . Revenue rose 12 % to $ 1.37 billion from $ 1.22 billion . In the nine months , EDS earned $ 315.8 million , or $ 2.62 a share , up 13 % from $ 280.7 million , or $ 2.30 a share . Revenue rose 14 % to $ 4.03 billion from $ 3.54 billion . Revenue from non-GM accounts was 45 % of EDS 's total business in the latest nine months , compared with 40 % a year earlier . The company has said it wants to boost non-GM revenue to at least 50 % of its total business by the end of 1990 .