GM Reaffirms Profit Forecast for Year

General Motors Corp. reaffirmed its full-year earnings target but said it would lose money in Europe and warned that rising interest rates would hurt its finance arm and other operations in 2005.

GM, the world’s largest automaker, is on track to meet its 2004 earnings target of $2 to $2.25 a share in the second quarter this year and $7 a share for 2004, excluding special items, GM Vice Chairman and Chief Financial Officer John Devine said.

However, GM will fail to reach its goal this year of breaking even in Europe, where it has lost money for years, because of continued losses at its Saab unit, the lagging German economy and disappointing revenue growth, Devine said.