GM Revises First Quarter to Profit

General Motors (GM Quote) revised its first-quarter results to reflect a change in its accounting for a retiree health care settlement, resulting in a $445 million profit for the period.

The world's largest automaker, which has been bleeding red ink as its North American business struggles, last month reported a loss of $323 million, or 57 cents a share, for the first quarter. The company said Monday that the drastically revised number, which on a per-share basis now totals 78 cents, comes after talks with the Securities and Exchange Commission over the proper accounting treatment for the health care settlement.

Under the agreement, GM will make $1 billion contributions to an employee trust in each of 2006, 2007 and 2011. In its original first-quarter earnings report, GM recorded a $681 million after-tax charge related to the first contribution. ...