GM Forecasts Decline in Earnings for ’05

General Motors Corp. forecast Thursday that its profit would fall to $4 to $5 a share this year as healthcare expenses rise and the company loses money in Europe.

The forecast excludes one-time items, the Detroit-based company said. GM reiterated that it expected to report 2004 profit of $6 to $6.50 a share, excluding one-time items that include writing off its remaining investment in Fiat Auto.

General Motors Chief Executive Rick Wagoner said this week that increased competition from Asian automakers such as Toyota Motor Corp., higher healthcare costs and rising interest rates were offsetting some of the effect of new and redesigned vehicles.

A $10-a-share annual profit goal was delayed from “mid-decade” to “as early as 2007,” the automaker said.

GM shares fell $1.07 to $37.32 on the New York Stock Exchange. Wall Street had expected the company to earn $4.78 a share this year.

GM’s U.S. market share fell to 27.5% last year from 29.2% in 1999 as Asian automakers such as Toyota and Honda Motor Co. gained sales with new sport utility vehicles and other trucks.