GM warns that recalls could last into summer
DETROIT — General Motors is telling Wall Street that a recent spate of recalls might last until mid-summer as the company continues to review unresolved safety issues.
A GM safety review that has resulted in 29 U.S. recalls so far this year covering a total of 13.8 million vehicles, more than five times the number of cars and trucks the company sold in the U.S. last year.
In a note to investors, Barclays analyst Brian Johnson wrote that he met with GM management Wednesday, and was told by product development chief Mark Reuss that GM continues to review safety data for potential recalls and that recalls could persist into mid-summer. Johnson also wrote that it’s possible that cars already subject to one recall could be part of future recalls.
Hewlett-Packard will make more job cuts
PALO ALTO, CALIF. — Hewlett-Packard Co. said Thursday that it is cutting an additional 11,000 to 16,000 jobs on top of those targeted in a 2012 restructuring plan, and it offered an outlook that was below expectations.
The company said the increased cuts come “as HP continues to re-engineer the workforce to be more competitive and meet its objectives.”
HP said it had 317,500 workers at the end of October, when it was partway into its restructuring. The plan announced in May 2012 called for cutting 34,000 jobs.
Net income in the three-month period ending April 30 rose 18 percent to $1.27 billion, or 66 cents per share. Revenue fell 1 percent to $27.31 billion, below the $27.43 billion analysts expected.
– Associated Press