GM (GM) revised its outlook for US car sales in 2008 down to 15 million. But, results moved the shares up 5%.

GM revenue dropped less than 1% to $42.7 billion. Auto earnings before 2007 adjustments moved up slightly to $392 million.

But, the reported results for the first quarter of 2008 include unfavorable special items totaling $2.9 billion. The charges include $1.45 billion to record a non-cash partial impairment of our equity investment in GMAC.

GM North America revenue for the first quarter 2008 was $24.5 billion, compared to $28.1 billion in the year-ago period. The decline in GMNA first quarter revenue was significantly impacted by the lost production due to the American Axle strike.

GM Europe revenue was up 17 percent and adjusted earnings before tax improved by $137 million.

Adjusted earnings before tax in the GM Latin America region more than doubled in the first quarter of 2008, driven by continued strong market growth and gains in GM market share in the region

GM Asia-Pacific adjusted earnings before tax increased by 49 percent, driven by strong volume and improvements in material cost performance, which were partially offset by mix and pricing deterioration and increased structural costs incurred to support growth.

Now, about those strikes and that Adelphia investment.

Douglas A. McIntyre

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