General Motors Corp. said Thursday it will temporarily close 13 assembly plants in the U.S. and Mexico — some for more than two months — as it tries to pare back its bloated inventory due to slumping sales. The company said in a statement that the closures will begin in May. Shutdown weeks vary by factory, but some will be closed for nine or 10 weeks. GM said the shutdowns will help control high dealer inventories and bring production in line with sales. The company plans to cut production by 190,000 vehicles. The troubled automaker has 22 assembly plants in North America.
Alaska Air Group narrows losses
Alaska Air Group Inc., parent of Alaska Airlines and Horizon Air, said Thursday it narrowed its first-quarter loss and will start charging for a first checked bag like most other airlines. The company lost $19.2 million compared to a year-ago loss of $37.3 million. The Seattle-based airline operator said its January-March loss was 53 cents a share compared with a loss of $1.01 a share a year ago. Revenue came to $742.4 million, compared to $839.5 million a year ago. Alaska Air Group’s adjusted first-quarter loss was 70 cents a share. Analysts polled by Thomson Reuters expected Alaska Air Group to post a first-quarter loss of 49 cents a share on revenue of $735 million. Shares of Alaska Air Group fell $2.44, or 12.3 percent, to close at $17.38 in Thursday trading.
Fiat affirms Chrysler commitment
Fiat Group CEO Sergio Marchionne on Thursday affirmed the Italian automaker’s “unwavering commitment” to its proposed alliance with Chrysler, but was categorical Fiat won’t put in cash at this stage. Marchionne told an analyst conference call after the company announced a first quarter loss of $531 million that Fiat would not put in cash for a minority stake. It would only consider committing cash further down the road “at the relevant time as the need arises” for an industrial collaboration that would be of benefit to Fiat. Fiat Group SpA is offering fuel-efficient powertrain and other technology that will help Chrysler expand into the small car market in return for 20 percent of the U.S. automaker.
Amazon profits beat expectations
Amazon.com says first-quarter earnings and revenue climbed thanks to strong sales of products such as books, DVDs and electronics. The results are higher than analyst expectations and indicate that the online retailer is faring well despite the ongoing recession. Seattle-based Amazon.com Inc. said Thursday that earnings climbed to $177 million, or 41 cents per share, in the first quarter. That’s 24 percent higher than the profit of $143 million, or 34 cents per share, in the year-ago quarter. And it beats the 31 cents per share analysts polled by Thomson Reuters expected.
From Herald news services
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
