GM losses prompt cut in forecast

Bowing to grim reality, General Motors Corp. followed Ford’s lead and cut its U.S. sales forecast Wednesday after a tough first quarter that saw a $3.3 billion loss.

But unlike Ford, GM faces more unknowns that could complicate its North American turnaround and drag down strong results overseas.

GM’s loss for the January-March period amounted to $5.74 per share, reflecting $2.9 billion in one-time charges. That compares with a profit of $62 million in the first quarter of 2007.

Without the one-time charges, GM lost $350 million.

In other quarterly results Wednesday:

•Starbucks Corp. said its profit fell 28 percent as U.S. consumers responded to rising food and gas prices by making fewer latte runs. Net income sank to $108.7 million, from $150.8 million in the same period last year. Revenue rose 12 percent to $2.53 billion from $2.26 billion in the year-ago quarter.

•Reynolds American Inc., the nation’s second-largest tobacco company, posted a 54 percent increase in profit due to a one-time gain, but its adjusted figures were weaker than expected. The maker of Camel and Kool cigarettes also announced a $350 million share buyback program. Net income at the Winston-Salem-based company rose to $505 million, from $328 million a year ago. Revenue dropped 4.2 percent to $2.06 billion.

•Colgate-Palmolive Co. said earnings fell 4 percent as the company took restructuring charges and a higher provision for income taxes. Earnings fell to $466.5 million, from $486.6 million in the prior year. Sales grew 16 percent to $3.71 billion, from $3.21 billion in the first quarter of 2007.

•Kellogg Co. reported its profit dipped 2 percent, despite recent price increases intended to offset higher costs. The Battle Creek-based cereal and snack maker said net earnings fell to $315 million, compared with $321 million during the first three months of last year. Kellogg reported a 10 percent increase in revenue, to $3.3 billion from $3 billion.

•Procter & Gamble Co. said that price increases, cost controls and strong growth in emerging markets helped offset soaring costs of oil and other commodities as its third-quarter profit rose 8 percent. The maker of Pampers diapers and Gillette razors reported a profit of $2.71 billion, compared with $2.51 billion a year ago. Revenue rose 9 percent to $20.46 billion from $18.69 billion last year.

•Kraft Foods Inc. reported a 13 percent drop in profits, but the results were better than expected and sales improved despite economic pressures and rising outlays for commodities and other manufacturing costs. The maker of Oscar Mayer hot dogs, Maxwell House coffee and Oreo cookies raised prices on 90 percent of its products, which contributed to a 21 percent jump in sales.

The company said the quarter’s $608 million profit and other results demonstrated that its three-year turnaround plan is on track as it enters its second year. The Northfield, Ill.-based company’s revenue rose to $10.37 billion from $8.59 billion.