GM suffers $3.2 billion loss in second quarter

DETROIT (AP) ? General Motors Corp. lost $3.2 billion in the second quarter because of heavy charges for layoffs and early retirements ? part of its massive restructuring program. But, without those charges, the world’s largest automaker scored a profit that blew Wall Street away and bolstered management’s claim that the turnaround is working.

GM shares rose $1.34, or 4.4 percent, to close at $32 on the New York Stock Exchange. They have traded in a 52-week range of $18.33 to $37.57.

The loss of $5.62 per share in the April-June period compared with a loss of $987 million, or $1.75 per share, for the same period last year.

Without one-time items, GM said it earned $1.2 billion, or $2.03 per share. That was significantly ahead of the 55 cents per share forecast in a survey of Thomson Financial analysts.

Revenue climbed to $54.4 billion, compared with $48.5 billion in the second quarter of 2005.

In North America, excluding special items, GM lost $85 million ? $1.1 billion less than it lost in the second quarter of 2005.

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WASHINGTON (AP) ? The economy logged decent but slower growth in the early summer as some consumers tightened their belts. Despite high energy prices, overall inflation remained fairly moderate.

That snapshot of America’s business climate emerged Wednesday from the Federal Reserve Board’s latest survey of economic conditions.

All 12 Fed districts generally indicated continued economic growth during June through the middle of July. Still, there were “numerous individual reports pointing to evidence that the pace of growth has slowed,” the survey said.