The largest and smallest U.S. -- owned automakers reported record losses yesterday for the latest quarter.
Giant General Motors Corps. said it lost $412 million in the second quarter, while American Motors Corp. reported a loss of $84.9 million for the same months, the third quarter of its fiscal year.
During the same three months last year, GM earned a record $1.19 billion ($4.13 a share), while AMC earned $15.1 million (49 cents).
Revenue at GM fell 27 percent from $19 billion in 1979's second quarter to $13.8 billion. AMC revenue dropped 32 percent from a record $798 million to $543 million.
GM's previous record quarterly loss was $135 million in the final three months of 1970, when the corporation was hit by a strike. AMC's previous record was $51.1 million in the July-September quarter of 1976.
GM's loss -- about in line with Wall Street predictions -- gave the giant automaker a first-half loss of $257 million. It marked the first time since 1946 that GM failed to make a profit in the January-June period.
First-half revenue fell 20 percent from $36.9 billion to $29.5 billion.
AMC's cost-cutting measures already undertaken "will have a positive impact on results for the first quarter of fiscal 1981, but we do not foresee a significant financial improvement in the fourth fiscal quarter which ends Sept. 30," Chairman Gerald C. Myers said.
AMC already has said it expects the year's loss to be a record. The company has obtained a $90 million loan from Renault to boost its finances.
GM Chairman Thomas A. Murphy and President Elliott M. Estes said that "despite the unremitting efforts of the entire organization, costs could not be reduced or eliminated as rapidly as volume fell.
"The recession in the United States and the slowdown in economic activity in a number of other major industrialized countries, together with concerns about inflation and fuel prices, will continue to adversely affect the corporation's profitability for the near term," they said.
Sales and, consequently, production and employment, will not increase until consumer confidence increases, they said, adding, "Realistically, this restoration of production and employment cannot be expected sooner than the fourth quarter of 1980."
The GM and AMC reports left only Ford Motor Co.'s loss for the quarter unknown among the four U.S. -- owned automakers. Chrysler Corp. already has reported a loss of $1.017 billion for the first half to the federal government, although its detailed financial statement has not been issued.
Goodyear Tire & Rubber Co., the world
Goodyear Tire & Rubber Co., the world's largest tire and rubber company reported yesterday that second-quarter earnings of $36.2 million (50 cents a share) were 32.2 percent below the $53.4 million (74 cents) reported for the same period in 1979.
Sales dropped from a record $2.13 billion a year ago to $2.70 billion in the latest quarter.
Goodyear Chairman Charles J. Pilliod Jr. said that, although domestic earnings were reduced by the economic recession in the United States and decreased U.S. auto production, the company's foreign operations softened the impact.
In the second quarter, foreign ales were $957.9 million against $817.7 million a year ago, a gain of 17.1 percent. And foreign earnings were $39.1 million against $26.3 million last year.
Pilliod said a foreign upswing helped bring total company sales for the first half to $4.09 billion, or 1.1 percent below a record 1979 first-half sales of $4.14 billion. Earnings for the half dropped to $77.4 million ($1.07) from $107.4 million ($1.48) a year ago.
Goodyear said a second-quarter 1980 tax credit of $6.9 million raised its net income for the period to $43.1 million (59 cents) and a first-half tax credit of $16.4 million raised net income to $93.8 million ($1.29).
Pan American World Airways Inc. reported a $66.3 million loss in the second quarter and a loss of $141.2 million in the first half, while Delta Air Lines Inc. said its earnings dipped 13.7 percent in the fourth quarter and 31.8 percent in the full year from 12 months ago.
Pan Am results included the operations of the former National Airlines, which Pan Am acquired at the end of last year.
Pan Am's $66.3 million second-quarter loss came on revenues of $917.1 million, compared with combined Pan Am-National earnings of $22.5 million (32 cents a share) on revenues of $768 million in the same 1979 period.
Pan Am's $141.2 million loss in the half came on revenues of $1.67 billion, compared with combined earnings of $10.5 million (15 cents) of revenues of $1.44 billion in the first half of last year.
The major international air carrier said its second-quarter loss reflected continued high fuel costs, up 81 percent from the combined Pan Am-National costs a year ago. In the half, fuel costs rose 90 percent from last year.
Pan Am also cited the lag in implementing fare hikes to offset rising fuel costs and the decline in air travel resulting from the economic recession.
Second-quarter income from Pan Am's unconsolidated subsidiaries, primarily Intercontinental Hotels Corp., was $4.3 million, compared with $6.4 million in 1979. First-half income from unconsolidated subsidiaries was $11.9 million, virtually unchanged from the first half of last year. Delta said it earned $37.7 million ($1.89 a share) on revenues of $813.5 million in the fourth quarter, compared with earnings of $43.7 million ($2.20) on revenues of $682.3 million in the same period last year.
Full-year earnings were $93.2 million ($4.69) on revenues of $2.69 billion, compared with $136.7 million ($6.88) on revenues of $2.43 billion in the previous year.
Delta said operating expenses of $2.86 billion in the 1980 fiscal year were up 29 percent from the $2.22 billion in the previous year.
Xerox Corp., a dominant producer of office copiers and duplicators, said yesterday that its second-quarter and first-half profits and revenues set records.
Net income in the quarter was $172.9 million ($2.05 a share), compared with $156.5 million ($1.86) a year earlier.
The latest three-month period was the first time Xerox revenues went above $2 billion in a single quarter, the company said. Operating revenues rose to $2.047 billion from $1.746 billion a year earlier.
First-half net income was $321.3 million ($3.49) in the first half of 1979. Operating revenue totaled $3.909 billion, up from $3.354 billion.
The company, which also is engaged in the publication of educational material and manufacture and marketing of computers, said its net income for the three months ended June 30 was 10 1/2 percent higher than a year earlier, and revenue increased 17 percent. First-half profits were 9 percent higher than a year earlier, and revenue was 16 1/2 percent higher.
C. Peter McClough, chairman and chief executive officer, and David T. Kearns, president and chief operating officer, called the second-quarter results "very gratifying, considering the current economic environment."
They said that the number of copies made on Xerox-leased and sold equipment in the last three months was about 15 percent higher than in the second quarter of 1979 and said additions to the population of Xerox copiers and duplicators "continued at a healthy pace."