GM taking a charge of $758 millionGeneral Motors Corp...

BUSINESS DIGEST

March 30, 1994

GM taking a charge of $758 million

General Motors Corp. said yesterday that it would take a charge of $758 million, or $1.05 a share, in the first quarter because of the adoption of new accounting standards.

Despite the charge, North American operations are expected to show a profit for 1994, said G. Richard Wagoner Jr., executive vice president and chief financial officer.

The noncash charge is related to adoption of the Statement of Financial Accounting Standards No. 112, which affect extended disability benefits to U.S. workers. Under the new standard, the cost of the benefits will be accrued during the employees' tenure at GM.

Oil prices stage comeback

Oil prices rebounded modestly yesterday from Monday's plunge as efforts to push prices lower were repulsed and buyers took heart in expectations of tighter domestic supplies.

Light sweet crude oil for delivery in May settled at $14.32 a barrel, up 24 cents, at the New York Mercantile Exchange. On Monday, crude fell more than $1 a barrel after the Organization of Petroleum Exporting Countries decided against cutting production and chose to hold production steady for the next nine months.

Prices were helped by forecasts that the American Petroleum Institute would report lower inventories of crude oil. In fact, the API reported a sharper-than-expected drop of 5.355 million barrels, to 335.833 million.

GM mulls new car for Del. plant

General Motors Corp. announced yesterday it will study the feasibility of producing a new small vehicle in Wilmington, Del., renewing hope that the Boxwood Road assembly plant won't close at the end of the 1996 model year.

GM announced in December 1992 that it would close the assembly plant, which employs 2,800, as part of a consolidation plan aimed at returning the troubled automaker to profitability.

A team of GM and union members is expected to begin the study in the next few weeks and complete it by the end of November. GM agreed last year during contract negotiations to conduct a joint feasibility study with the UAW for a new small vehicle.

TCI to test 124-channel cable TV

Tele-Communications Inc. said yesterday that it will test a 124-channel cable television service in Chicago.

The service, called Intelligent Television or I.T., will involve about 8,800 Tele-Communications customers in the suburb of Mount Prospect, Ill., the largest trial of its type conducted by TCI.

The 12-month trial, to begin next month, will allow Tele-Communications to gauge consumer demand for new services that may be offered once the technology for the "information superhighway" becomes a reality, it said.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.