GM's $39B loss a record

No. 1 U.S. automaker posts much bigger operating loss than forecast as huge charge weighs on company.

General Motors reported a record net loss Wednesday due to a $39 billion charge, along with a large operating loss that was far worse than Wall Street expectations.

The nation's No. 1 automaker, which was hit with a soft auto market and a two-day strike by the United Auto Workers union during the quarter, lost $1.6 billion, or $2.80 a share, excluding special items.

That compares to the forecast of a 25- cent-a-share loss from analysts surveyed by earnings tracker Thomson First Call and earnings per share of $497 million, or 88 cents on that basis in the year-earlier period.

In addition, the company took a huge charge in the quarter, which was related to the writedown of tax credits for losses over the last three years. That caused it to post a net loss of $39 billion, or $68.85 a share, for the third quarter of 2007, compared with the net loss of $147 million, or 26 cents a share, in the year-earlier period.

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