GM's 2003 Earnings to Fall as Pension Expense Soars

General Motors(GM Quote) said its 2003 earnings will fall from 2002's on a tripling of the expense it faces to fund its multibillion-dollar pension plan.

The company also lowered the expected rate of return on its pension assets, a move that could crimp earnings in years to come.

Excluding its Hughes Electronics unit, GM expects to earn $5 a share in 2003, down from the $6.75 it's forecasting for 2002. Still, both results are better than analysts were predicting. The company said its pretax pension expense will be $3 billion next year, up from $1 billion in 2002. ...